Turn Your Dead Real Estate
Leads Into Hard Cash!

We Buy Your Dead Leads!

Real Estate Contracts and Forms
We Are Seeking Private Lenders
Total Real Estate Solutions is seeking one or more private lending resources for a unique project. If you, or someone you know, is interested in learning more about this interesting, lucrative and well-secured opportunity, please click here and share a bit of info with us and we'll be happy to discuss the opportunity with you.
 Welcome Home
Home Page
Site Map
Reading Room
Real Estate Books
Real Estate News
Tools & Resources
Free Newsletters
Panel of Experts
Contact Us
Website Services
Real Estate Websites
Website FAQ
Showcase of Examples
Custom Template Design
Buying a Home?
Tips for Buyers
Featured Listings
Search Property Listings
Foreclosure Listings
Financial Calculators
Selling a Home?
Tips for Sellers
List Your Property
Listing Manager
Real Estate Pros
Foreclosure Listings
Affiliate Partners
Real Estate Talk
FREE Real Estate Forms
Contracts and Forms
Marketing Ideas
FREE Website Content
Resources and Links
Glossary of Terms
Top 100 Best
Real Estate Directory
Add Your Listing
Link To Us
Visit Our Sister Sites
Refrigerator Art Mktg
Top 100 Best Websites
Free Real Estate Sites
Real Estate Directory
FSBO Directory
Lender Directory
Home Builder Central

Real Estate Reading Room [Home Buying]
Articles and Advice about Home Buying from Real Estate Reading Room

What is Escrow?
by Phyllis Harb

The Escrow Process
Both buyer and seller deserve the assurance that no funds or property will change hands until all of the instructions in the Purchase Contract have been satisfied. Buyers and sellers submit signed documents and buyer’s deposit money to be held by an independent neutral third party (Escrow). After the conditions agreed upon by both buyer and seller (in the Purchase Contract) are satisfied, Escrow then distributes the documents and the funds.

The escrow holder is an independent neutral third party; works for both the buyer and the seller, and is authorized to follow the specific written instructions provided by both parties. Escrow functions:

  • Receives and deposits (into escrow’s account) buyer's initial deposit and prepares escrow package. Requests "demands" (pay-off statements) from existing lenders and/or lien holders. Obtains seller's notarized signature on grant deed. Safeguards grant deed until all terms and conditions are met and buyer’s remaining certified funds are on deposit. Orders title search and receives and distributes preliminary title report. Calculates prorations pertaining to property taxes, rents, insurance, interest, and other expenses as required.
  • Coordinates with buyer's lender throughout the escrow process. Orders and processes buyer's loan documents. Coordinates buyer’s signing of loan documents and their return to buyer’s lender. Receives buyer's final down payment funds and coordinates funding with buyer's lender.
  • Orders recordation of grant deed conveying title to buyer and distributes all funds: pays-off existing loans; pays other required costs, such as termite completion, home protection policy; etc. Releases net proceeds to seller.

Simultaneously, the buyer and the buyer's lender are engaged with the loan approval process. Lender duties:

  • Orders a credit report and other credit documentation as required (mortgage ratings, landlord ratings). Reviews the buyer's credit and when necessary obtains satisfactory explanations from the buyer regarding any negative credit history. Verifies the buyer's sources of income. Verifies that the buyer has adequate liquid funds for down payment, closing costs, and reserves. Requests an appraisal of the property, and verifies that the property's value is equal to the contract sales price.
  • Submits the loan to underwriters for final approval.
  • Coordinates delivery of the buyer's loan documents to the escrow officer.

And in the meantime... While the escrow officer, lender, and buyer are diligently working, the seller also has responsibilities.

  • The seller and the listing agent must now prepare detailed disclosures that are required by law (smoke detector, lead based paint, earthquake, environmental hazards, zone disclosures, water heater, transfer disclosure, etc.)
  • Provide escrow officer information on existing loans to check against title search findings.
  • With their Realtor, make the home available for physical inspection and other trades people as required by the purchase contract, such as licensed Termite Company and lender's appraiser.
  • Make any repairs agreed upon in purchase contract.

In order for your escrow to proceed smoothly, your Realtor’s job is to coordinate and oversee the above chain of events. Similar to dominos – each event must occur in a timely fashion; delays in any event may result in the postponement of escrow’s scheduled closing date.

Phyllis Harb, a California native is a Realtor/Marketing Specialist at RE/Max Tri City in La Canada California. Harb has been assisting local home sellers and buyers since 1989 and offers over 10 years additional experience in real estate lending. Phyllis may be contacted at 818 790-7325

Real Estate Reading Room HomeMore Articles in Home Buying
More Articles by Phyllis Harb

Article Topics

Search Articles
Search Keywords

Popular Searches
down market


This article may be reprinted for newsletters and websites provided that the original author's profile information (including all links) is included with the article. You many not modify the article content or the author profile information in any way. Sending a Notice of Intent to Publish to the author is appreciated.

Copyright © 2019 www.totalrealestatesolutions.com
Powered by inetUSA