Here is the final installment of our series on Escrow in a Real Estate Transaction
What to look for in an escrow company
Online security is one of the most essential elements in an escrow transaction since it involves one of the biggest purchases of most people’s lifetime: their home. So it is important to use an escrow firm that takes steps to ensure funds are not misdirected or personal information subjected to hacking now or in the future. Your escrow company is mandated to report the purchase or sale of a residential property to the Internal Revenue Service. In the process, the escrow firm must collect all parties’ non-public personal information, such as Social Security numbers, date of birth, bank account numbers. It’s the kind of information you don’t want hackers to have. To be safe, select an escrow company that is SOC1 and SOC2 certified by a third-party auditor to protect against online predators. I have worked with many escrow companies and have a few that I highly recommend, please contact me and I will put you in touch with them. Send me your to my email, email@example.com and I will put you in contact with a couple of them.
How can you assure a successful escrow?
Buyers need to make sure they are using an accredited lender that is savvy and familiar with new federal requirements. What are the current federal regulations? The Consumer Financial Protection Bureau (CFPB), an organization that governs financial institutions, including residential real estate and closing services, mandates the new federal regulations. “They have stricter timelines and stricter disclosure requirements for lenders,” Tegan said. “They make it a lot more difficult for a lender that is not savvy to meet these timeframes and get loans closed on time. So it is very crucial for a buyer to choose a good team in both an agent and a lender.” Of course to service my clients I have a few lenders that I highly recommend. So many of my clients have thanked me for these lenders and I consistently hear how they performed where other lenders could not. Send an Email to me and I will set up the introductions.
Buyers and sellers are now facing longer escrows than in the past, instead of the typical 30 days to close, it is now common to take up to 45 days unless they are all-cash transactions. Are there other ways to expedite the escrow process? Let me guide you, little things like the exact closing date become important, ie; Interest payments on a loan might continue over a weekend if a home isn’t recorded on a Friday, so the day of the week a deed conveyance is recorded can make a difference.
Robert Schmalz - Broker / Founder
West Los Angeles Real Estate Group
An Independent California Licensed Realty
California Broker Lic #01813025
"Helping Guide Clients Through The Economic Complexities Of Real Estate
By Knowing Their Wants And Needs"