Impound

An account maintained by mortgage companies to collect amounts such as hazard insurance, property taxes, private mortgage insurance and other required payments from the mortgage holders; these payments are necessary to keep the home but are not technically part of the mortgage. Impound accounts are often required of borrowers who put down less than 20%, but are usually optional in other cases. The purpose of the impound account is to protect the lender. Because low down-payment borrowers are considered high risk, the impound account assures the lender that the borrower will not lose the home because of liens or loss, as the lender pays insurance, taxes, etc. from the impound account when they are due.

Though the impound account is designed to protect the lender, it can also help the mortgage holder. By paying for these big-ticket housing expenses gradually throughout the year, the borrower avoids the sticker shock of paying large bills once or twice a year, and is assured that the money to pay those bills will be there when they need it. However, if the mortgage company does not pay these bills when they are due, the borrower will be held responsible, so borrowers should keep an eye out to make sure their mortgage companies are fulfilling their end of the bargain.


Investment dictionary. . 2012.

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  • impound — im·pound /im pau̇nd/ vt: to take control of in the custody of the law or by legal authority impound a vehicle the police impound ed the dwelling until the search warrant was obtained im·pound·ment n Merriam Webster’s Dictionary of Law. Merriam… …   Law dictionary

  • impound — im‧pound [ɪmˈpaʊnd] verb [transitive] LAW if the police or law courts impound your possessions, they take them and keep them because a law has been broken: • Courts are authorized to impound any vehicle driven by a person without a valid license …   Financial and business terms

  • Impound — Im*pound , v. t. [imp. & p. p. {Impounded}; p. pr. & vb. n. {Impounding}.] To shut up or place in an inclosure called a pound; hence, to hold in the custody of some authority such as police or a court; as, to impound stray cattle; to impound an… …   The Collaborative International Dictionary of English

  • impound — (v.) early 15c., to shut up in a pen or pound, from assimilated form of in into, in (see IN (Cf. in ) (2)) + POUND (Cf. pound) (n.). Originally of cattle seized by law. Related: Impounded; impounding …   Etymology dictionary

  • impound — [v] confine cage, coop up, enclose, fence in, hold, imprison, keep, pen, seize, shut in, take; concepts 121,130 …   New thesaurus

  • impound — ► VERB 1) seize and take legal custody of. 2) shut up (domestic animals) in a pound. 3) (of a dam) hold back or confine (water). DERIVATIVES impoundment noun …   English terms dictionary

  • impound — [im pound′] vt. 1. to shut up (an animal) in a pound 2. to take and hold (a document, funds, a vehicle, etc.) in legal custody 3. to gather and enclose (water) for irrigation, etc. impoundment n …   English World dictionary

  • impound — UK [ɪmˈpaʊnd] / US verb [transitive] Word forms impound : present tense I/you/we/they impound he/she/it impounds present participle impounding past tense impounded past participle impounded if the police or other officials impound something, they …   English dictionary

  • impound — verb a) To shut up or place in an inclosure called a pound; b) To hold in the custody of a court or its delegate; as, to impound stray cattle; to impound a document for safe keeping …   Wiktionary

  • impound — verb Impound is used with these nouns as the object: ↑car, ↑vehicle …   Collocations dictionary

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