Consumer Protection Law
Consumer Protection Law Questions? Ask a Lawyer Now.
Hello: This is Attorney Phillips. Welcome to JustAnswer. I am reviewing your post, and I will post my response very shortly.
Yes, eventhough the amount in escrow is your money, the lender using it to reduce the the principal is still for your benefit. The money is still being used on your behalf. The lender cannot return the escrow to you when there is a balance in your account. Any balance in the escrow will go towards pay-off--to pay down the total amount due. So, the lender's action here is legal.
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