June 25, 2009
Escrow Agent Have You Came across Escrows Earlier? Find out about them Here
Talking about escrows as it pertains to mortgages and real estate, we refer to two different subjects: the sale of a house (referred to as escrow) and the mortgage escrow account (funds set aside for incoming expenses while the lender holds the note to your house). Let’s take a brief look at both of these concepts so you can be better prepared when you decide to buy your first home and take on a mortgage.
Escrow
Purchasing a House is not a simple process. With really few exceptions, it will be the largest financial decision you will ever make and will mean that you have an obligation to your lender for many years to come to pay down your mortgage note. It is essential that when you purchase a home that particular procedures, decrees and paperwork be followed and signed. In almost all real estate dealings you will be Coping with a neutral third party named the escrow bearer (or escrow agent). The role of the escrow bearer is to make certain that everything is in order so that all parties affected follow the rules and are protected
Escrow agents make sure that all the documents are obtained and filed and that all specifications in the agreement are met before the sale is settled. They will request a title search to make certain the house is free and clear of any liens. They are in charge of accepting the funds from the buyer and releasing them to the seller only when the sales agreement has been finalized.
An escrow agent will never give advice to either party. They are to stay neutral.An escrow agent is to remain neutral and unbiased to both purchaser and seller. He or she may not contribute advice to any. If you suspect that your escrow agent is not being neutral you should instantly inform your mortgage lender and realtor.Inform instantly your mortgage lender if you suspect that your escrow agent is not being neurtal. They also will not extend tax advice or opinions on your mortgage. Again, they are there to make sure all the t’s are crossed and I’s are dotted - they are not there to get affected personally in any way.They may not offer tax advice, opinions regarding your mortgage and be involved in any way personally. They are there to make certain that everything is in order.
