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What Do I have to do while in Escrow?
The key to any transaction as important
as your sale, purchase or loan is to read and understand your escrow
instructions. If you do not understand them, you should ask your escrow
officer to explain the instructions.
Your escrow officer is not an attorney
and cannot practice law; you should consult your lawyer for legal
advice. Do not expect your escrow officer to advise you as to whether or
not you have a "good deal" or are doing things the right way. The escrow
officer is there to follow the instructions given by the principals in
the escrow.
In order to expedite the closing of the
escrow, you should check with your escrow officer as to what specific
items you could do to assist. Ask the question – "What can I do to
expedite the closing of this escrow?"
Respond quickly to correspondence. This
will assist in the timely closing of the transaction.
If you are required to deliver funds into
the escrow, make sure that you provide "good" funds in the form required
by the escrow officer. Company procedures differ in this regard, and
there are many ways you can help at the time of closing; check with your
escrow officer. Do not give the escrow officer a personal check and
expect the escrow to close immediately; the escrow can only close on
cleared funds, and the processing of a personal check can take days,
possibly even a week or more.
When the escrow officer closes the
escrow, some of you may want the closing papers, checks, title policies,
statements, etc. Made available immediately. There are many aspects to
the closing of the escrow, and some of these cannot be processed on the
day of the closing; they may take several days. If you have a special
need, for example, a cashier’s check on the day of closing, you should
communicate that need to the escrow officer early in the processing of
the escrow.
Escrow
and Your New Loan
If you are obtaining a new loan, your
escrow officer will be in touch with the lender who will need copies of
the escrow instructions, the preliminary title report and any other
documents escrow could supply. In the processing and the closing of the
escrow, the escrow holder is obligated to comply with the lender’s
instructions.
It has become a practice of some lenders
to forward their loan documents to escrow for signing. You should be
aware that these papers are lender’s documents and cannot be explained
or interpreted by the escrow officer. You have the option of requesting
a representative from the lender’s office to be present for explanation,
or arrange to meet with your lender to sign the documents in their
office.
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