The borrower is purchasing a home but intends to allow the seller to remain in the home until he (the seller) completes construction on his new home.
The loan will have an escrow account established for ins. & taxes.
The borrower is obtaining renters insurance, which has a higher premium, once the seller moves out he will obtain homeowners insurance. The cost will be significantly lower. The borrow wants the bank to reduce their monthly escrow payment to reflect the lower insurance cost.
Question: How can we do this? Short year analysis/statement or just adjust totals without analysis and statement?