The escrow holder makes sure that all terms and conditions of the seller's and buyer's contract are performed prior to the sale being completed. This includes securing funds and documents, completing required forms, and getting the release documents for any loans or liens that have been paid with the transaction, assuring you have a clean title to your property before the negotiated price is fully paid.
Escrow holders look for the following pieces of paperwork:
Upon finishing of all instructions of the escrow, closing can take place. At this time, all payments and dues for inspections, title insurance and real estate commissions are collected. You'll then obtain the title to the property and the title insurance gets dispersed as agreed upon in the escrow instructions.
The escrow holder gets a payment at the completion of closing. I'll keep you updated on the next steps.
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
This is a quick run-down of the escrow process. Your specific plan will be slightly different depending on your bank and your escrow holder.
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