ATTENTION BUYER: IMPORTANT INFORMATION REGARDING YOUR INSURANCE IMPOUND ACCOUNT
Per your Real Estate Contract, Mortgage or Deed of Trust (“Contract”), you should have paid the first year of insurance premiums when you entered into the Contract. Thereafter, you will make or are making 1/12th of the annual insurance premium payments monthly with your payment to New Mexico Escrow Solutions (“NM Escrow”).
The insurance payment that NM Escrow is collecting monthly WILL NOT be sent to the insurance carrier monthly. Instead, those payments are collected in an impound account and will be used to pay the next year’s annual insurance premium when it becomes due.
Each year of the Contract, at least 15 days prior to the expiration of the current insurance policy, you must provide NM Escrow with information regarding the renewal of the current policy, or the new policy you intend to obtain, so that NM Escrow is able to timely remit the correct annual premium to the appropriate insurance carrier.
NM Escrow WILL NOT automatically renew the policy with your current insurance carrier, as you may have chosen to change carriers and/or the amount required to effectively renew the policy may not be the same amount as your current year’s premiums.