Seller paid closing costs into escrow

[Jason Ahrens]

Eric Anopolsky said the following on 28/04/2008 11:24 AM:
> If you provide more info on exactly what that money will be used for, I
> will try to give you more specific information.
>   
Specifically some of the money the seller is paying is going to escrow 
for future property tax and insurance payments.

Now, for all the other items the "seller" paid for, I didn't even bother 
recording as they would all fall under the "administration fees", but 
this one has a different end result. The money that goes into the Escrow 
account from the seller will, in the future, be used to pay my property 
taxes and insurance. It's a one time injection into the account from the 
seller at closing.

For example, from the HUD form in the Reserves Deposited with Lender 
(numbers fudged for simplicity):

Item - Paid from Buyser - Paid from Seller
Hazard Insurance - $100 - $0
Property Taxes - $700 - $300

In total, this "jumpstarts" the escrow account with $1100. Every month 
then, I put another $300 in it as part of my monthly payments. Twice a 
year property taxes are paid out. Once a year, Hazard Insurance is paid out.

So, it seems I have three options:

1) It's money given to me as part of closing (Income), but put into 
escrow to pay some of those taxes and/or insurance fees.
2) It's money lent to me as part of closing by the seller on behalf of 
the insurance and county (Liability)
3) It's money I "ignore" and have to be aware of the discrepancy when 
the payments are dolled out adjust accordingly in my head until it's 
"exhausted"

I figure #3 is the least correct way to do this :)

Jason