Your modified loan will require an escrow account. Not all properties have both taxes and insurance paid directly by the homeowner hence the wording "and/or." For example, condos most often have the insurance on the structure paid by the Home Owners Association (HOA) from HOA dues. Therefore a condo loan would only have an escrow for the taxes paid individually by the homeowner and not also the hazard insurance that is on the building and not paid individually by the homeowner. If you currently pay both taxes and hazard insurance on your home you will have both escrowed unless state law makes that provision of the contract unenforceable.