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  • Tax statements
  • Fire and other insurance policies
  • Title insurance policies
  • Terms of sale and any seller-assisted financing
  • Requests for payment for various services to be paid out of escrow funds
  • Don't let the unknown prevent you from becoming a homeowner. I can help you become knowledgeable about the process. Contact me and I'll make sure you're a empowered buyer.

    Escrow 101

     Louis Wolfson & Co. can walk you through closing - (617) 799-3326
    Let's talk about "escrow". An escrow holder is brought on to assure your property closes on time and the process goes smoothly. Escrow holders hold money for "safe-keeping" in an exchange between a buyer and seller. For example, in an Internet purchase, PayPal is the reliable third party that obtains the buyer's cash, and then disburses the payment to the seller.

    The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are reached in preparation of the sale being finalized.

    These are the documents that escrow agents usually look to collect:

    You're ready to close when every step is finished in escrow process. All outstanding payments and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the house is then transferred to you as buyer and appropriate title insurance is issued as outlined in the escrow instructions.

    At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. As your real estate professional, I'll let you know what is an acceptable way of paying.

    The Escrow Holder Will:

    • Prepare escrow instructions
    • Petition title research
    • Meet the bank's requirements as outlined in the escrow agreement
    • Intake payments from the buyer
    • Prorate insurance, tax, interest and other payments according to guidelines
    • Record deeds and other documents as instructed
    • Request title insurance policy
    • Close escrow when all terms of agreement of seller and buyer have been met
    • Disburse funds and finalize instructions

    The Escrow Holder Won't:

    • Offer advice - the escrow company stays a neutral, third-party status
    • Give insight about tax implications
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Write escrow instructions
    • Petition title research
    • Comply with the bank's guidelines as noted in the escrow agreement
    • Accept funds from the buyer
    • Prorate insurance, tax, interest and other payments according to instructions
    • Record deeds and other documents as instructed
    • Obtain title insurance policy
    • Close escrow when all instructions of seller and buyer are met
    • Disburse monies and finish instructions
    • Offer advice - the escrow agent must maintain a neutral, third-party status
    • Offer opinions about tax implications

    Mortgage Escrow Account

    Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

    This is a simple outline of the escrow process. Your individual process will be slightly different depending on your bank and your escrow holder.

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