Escrow Delays Part 2

What Causes Escrow Delays?



• Not returning the calls to escrow when they try


to verify a new escrow


• Not giving vesting information at opening


• Forms turned in Incomplete or Late! (i.e.,


missing S.S.N. or S.I., no insurance company)


• No loan information so demand can be ordered


• Initials Missing on forms and documents


• Signatures Missing


• Grant Deeds Signed but not Notarized


• Grant Deed not in at closing


• Not returning Paperwork in a Timely Manner


• If you know about a PROBLEM-Don't keep it a


Secret!


• Lack of Communication between Agents,


Escrow and parties.


• If you know about Loan Approval Give Escrow


a Heads Up!


• Get the Insurance Agent's name and Information


to Escrow A.S.A.P



What Can the Agent Do?



• Have your property profile when you open


escrow


• Have new lender information so Cert.


Instructions can be sent out with no delays


• Have purchase contract & all counters with you


so all terms are clear at opening


• Know the other agent's phone number so


information can be verified quickly


• Get all escrow papers back as quickly as


possible. If you are not a notary, feel free to


send them in to Escrow to sign Grant Deed. This


is often a last minute hold up.


• Be sure the S.I. is returned quickly this shows all


the judgments, etc. (Very Important to do this


early)


• Be sure to complete all paperwork. Loan info for


Seller, Insurance for Buyer is often not


completed


• Check each page of instructions that they


initialed and signed correctly and did not miss


any spots.

Escrow Delays Part 1

Some of the common hurdles that slow or stop an



escrow transaction are:


BUYER:



• The Buyer does not have the additional funds


needed to close transaction


• The buyer brings a personal check for closing


• Husband/wife comes to sign without spouse


• Escrow Officer was not aware of marriage,


separation, divorce, sole and separate property, death


of a joint tenant, etc., making all papers incorrect


• One of the spouses is out of town


• Buyer signs loan papers incorrectly


• Judgments arise during escrow period


• Buyer does not have proper info for notary


• Buyers make a major purchase on Credit



SELLER:



• Demands on existing loans are not yet in escrow


• Releases are not yet in escrow


• Judgments arise during the escrow period


• Did not disclose to Realtor that homeowners dues


are due on the property.


• Seller does not have proper info for notary



FIRE INSURANCE



• The policy wasn't ordered soon enough - escrow


cannot order without lender's instructions


• The policy reads incorrectly -addresses, names, etc.


• The coverage is not for the correct amount


• The buyer used an Out-of Town (State) insurance


agent



TERMITE & PEST CONTROL:



• The inspection was done on the wrong property


• No report, inspection or clearance has been received


in escrow


• The clearance was not completed


• The addresses are incorrect -the Lender will not


accept


• Certain areas were not checked but a clear report


was issued - the lender will not accept



LENDER:



• Points/Interest rate goes up: parties are not notified


• Miscellaneous charged were made and not disclosed


to parties


• The Lender has called for additional conditions

What is an Uninsured Deed?

Most common problems from Uninsured Deed's come from


Quitclaim deeds between family members, especially husband


and wife. When a person is added to title, it is a window of


opportunity for matters against him/her to attach to the property.



Why Should it be of Concern to you when taking a listing?



• Is it a divorce situation?


• Was it signed in distress?


• Possible bankruptcy?



How can you spot an uninsured deed when you order a



profile from Consumer's Title and look at the deed?



• Look for accommodation stamp.


• No title company or title company title order number.


• No escrow number showing on document.


• No document stamp showing under the fee section.


• Handwritten document.


• Time recorded is not 8:00 am in the morning.


 

Your Sales Team
Title Industry Blog

Consumers Title Company
Your Sales Team
1.805.495.7200
dwheeler@ctcsc.com

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