GoDocs has more than one option to reflect a withholding of PITIA (Principal, Interest, Taxes, Insurance and Assessments) within the loan documents.
GoDocs offers the option to include PITIA (Principal, Interest, Taxes, Insurance, and Assessments) via two options: (i) a Cash Collateral Agreement should the funds be held in a pledged account with the lender or (ii) an Interest Reserve Provision for the Note that holds the funds in a trust account that is established by the Lender and that is to be held in the name of and for the benefit of said Lender, possible in escrow or as needed.
Option 1: Once this functionality is turned on, you must select "yes" for "Cash Collateral Agreement". After selecting "yes", a link to the Holdback Page will populate. The Holdback Page will address the additional information needed for the Cash Collateral Agreement.
The selection of "yes" and completion of the information needed for a Cash Collateral Agreement will populate a separate Cash Collateral Agreement document in your loan document package.
Option 2: Once this functionality is turned on, you must select "yes" for "Interest Reserve Dollar Amount". Please note that while we call it "interest reserve", this field is designed for any amount or distribution that you intend to capture. This option will be under the Loan Tab:
This selection of "yes" on the Interest Reserve Provision will come into Section D of the Loan Agreement and Section J of the Note.
Section D of the Loan Agreement identifies the requirement of borrower to deposit with lender/escrow the additional estimated amount:
Section J of the Note will capture the estimated 3 months of PITIA to be withheld as per Lender’s discretion:
