What’s in a Word?
“Imˈ- pound”: seize and take legal custody of something — especially a vehicle, goods, or documents — because of an infringement of a law or regulation.
–Dictionary definition
Once upon a time, the fees that lenders collected in advance from home buyers for such things as property taxes and home insurance were called “pre-paids” (short for “pre-paid expenses”).
Now?
They’re known as “impounds.”
“Hey!! Where Are You Taking My Car!?!”
Same difference, mostly.
But, at least to me, the latter suggests that the government seized something of yours because you screwed up (didn’t make a payment, parked in the wrong place, smuggled heroin — you know, the usual list). 🙂
If the goal is to make home buyers feel (slightly) better up about coughing up fees, early, to replenish their lender’s escrow account . . . I’d go back to “pre-paid’s.”
P.S.: It’s not just semantics. “Pre-paid” is more accurate in an accounting sense, too (I’m a former CPA).
