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  • Tax statements
  • Fire and other insurance policies
  • Title insurance policies
  • Terms of sale and any seller-assisted financing
  • Requests for payment for various services to be paid out of escrow funds
  • Don't let the unknown scare you from becoming a homeowner. I can help you understand the process. Contact me.

    What is Escrow?

     Compass can walk you through closing - 818.516.0011
    First, a little about "escrow". To finish the sale of a property, a neutral, third party (the escrow holder) is engaged to assure the process will close correctly and on time. A property is said to be in escrow when in the closing transaction, funds is secured by a third party on behalf of two parties when the transaction is taking place. For example, in a Web purchase, PayPal is the neutral third party that obtains the buyer's money, and then sends the payment to the seller.

    Settling the last details like obtaining funds, finishing forms, obtaining the documents for loans and liens, and making sure you get a clear title to the house prior to your purchase gets finalized are all parts of closing in which an escrow agent is useful.

    The documents the escrow agent may obtain include:

    Closing on the property happens when all of the procedures of the escrow are complete. All outstanding payments and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then obtain the title to the house and the title insurance gets issued as noted in the escrow instructions.

    The escrow company receives a payment at the completion of closing. I'll keep you informed on what comes next.

    The Escrow Holder Will:

    • Assemble escrow guidelines
    • Perform a title research
    • Comply with the bank's standards as outlined in the escrow agreement
    • Receive funds from the buyer
    • Prorate interest, insurance, tax and other payments according to guidelines
    • Record deeds and other legal documents as instructed
    • Obtain title insurance policy
    • Close escrow when all instructions of seller and buyer are complete
    • Disburse monies and finish instructions

    The Escrow Holder Will Not:

    • Offer advice - the escrow company stays a neutral, third-party status
    • Dispense opinions about future tax estimations
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Assemble escrow guidelines
    • Petition title search
    • Comply with the bank's standards as specified in the escrow agreement
    • Accept payments from the buyer
    • Prorate tax, interest, insurance and other fees according to instructions
    • Record deeds and other paperwork as instructed
    • Request title insurance policy
    • Close escrow when all instructions of seller and buyer are met
    • Disburse payments and finish instructions
    • Give advice - the escrow agent stays a neutral, third-party status
    • Give insight about future tax estimations

    Mortgage Escrow Account

    Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

    This is a quick run-down of the escrow process. Your particular methods could vary based on your bank and your escrow company.

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