Answer:
Ordinarily, escrows for taxes and hazard insurance on condo loans are handled just as they are for other residential loans. If the lender/servicer requires the escrow, the borrower usually has no option.
The one wrinkle of which I'm aware is homeowner's insurance. Some condo units are covered by the master association policy ("walls out" coverage), in which case the condo unit owner gets the equivalent of contents coverage. The lender or investor in such a loan may or may not require escrow of premiums in that case.
First published on BankersOnline.com 10/7/02
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