When utilizing a Loan Modification option, can a mortgagee capitalize an escrow motion for Homeowner's Association fees? HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states: Mortgagees must also escrow funds for those black-ink items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.

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