Process of an Escrow:
escrow company is a neutral third party in the escrow transaction.
The Escrow Officer works closely with you, your real estate agent
and lender to ensure that the sale conditions and agreements are
complied to within specific time periods.
The Escrow Officer carries out the following procedures and responsibilities:
1.PREPARE ESCROW INSTRUCTIONS AND AMENDMENTS: As directed and
reviewed by Real Estate Agents.
2.ORDER THE PRELIMINARY TITLE REPORT: The preliminary title report
is ordered from the title insurance company for the property you
are buying or selling. This report reveals liens of public record
and is the guideline escrow uses to assure that title is conveyed
with only the liens and matters the buyer has agreed to accept.
3.ORDER PAYOFF STATEMENTS (DEMANDS): Demands are ordered from
the lender of record for the current mortgage(s) on the property,
the homeowner's association statement and documents, and any other
lien or encumbrance affecting title to the property.
4.PREPARE ESTIMATED CLOSING STATEMENTS: Once the loan documents
are delivered to escrow by the lender, an estimate of closing
is generated and the buyer is called to schedule an appointment
to sign the loan documents and bring the closing funds. An estimate
for the seller is also generated and sent for review and approved
by the seller.
5.ORDER INSURANCE: Upon receipt of the loan documents, escrow
will order the insurance policy from the buyer's insurance agent
per the requirements of buyer's new lender.
6.SET UP RECORDING: Once the loan has funded, escrow will confirm
with the title company that the wire has been received and set
up recording. The escrow has sent all recordable documents to
the title company who is then to await instruction from escrow
that the loan has funded. At that time the title company will
send these documents to the county recorder's office to be recorded
the next business day. All documents record at 8:00 AM but have
a scheduled order to which the confirmation of recording is distributed
to each title company. This will vary from day to day but will
happen on that day. When the title company has confirmed recordation,
a fax is sent to the escrow company with the confirmation and
the final title fees and payoff figures. Escrow will then balance
the file, generate the final closing statements and disburse funds.
NOW THE ESCROW IS CLOSED!