All Posts Tagged With: "escrow"
Foreclosure Taxes
We usually think of foreclosures as the end product of not paying a mortgage. But in a somewhat weird way it’s also possible to be foreclosed for other reasons.
For instance, in many communities the water company is actually a governmental agency. Don’t pay your water bill and there can be a lien against the property, [...]
What Makes A Foreclosure Settlement Different?
When you purchase a foreclosed property from a lender the transfer process is largely the same as if the purchase involved property from a typical seller. Largely the same — but not the same.
A closing, settlement or escrow is merely an accounting of who owes what to whom. Among the interests represented at the closing [...]
How To Read The HUD-1
Starting January 1st, 2010, all real estate transactions will be settled using a new HUD-1. The HUD-1 is a standardized form which allows real estate buyers and sellers to clearly understand the costs of their transaction.
The original HUD-1 was developed as a by-product of the Real Estate Settlement and Procedures Act of 1974 — or, [...]
How To Read The New Good Faith Estimate Forms
Starting January 1, 2010 HUD will require lenders to use a new Good Faith Estimate form or GFE. This is important because whether you buy a mansion or a cottage, you want to know how much your mortgage is going to cost — not just the interest rate but all the fees and charges you’ll [...]
2Nov2009 | Peter G. Miller | 1 comment | Continued
Why Do Real Estate Brokers Have Escrow Accounts?
In terms of a real estate sales agreement, an “escrow” or trust account is typically an account operated by a real estate broker which is used to hold buyer deposits until closing. Example: Buyer Smith makes an offer to purchase a home. With the offer is a $10,000 deposit. That deposit is held by Broker [...]
29Aug2008 | Peter G. Miller | 0 comments | Continued
How are real estate escrow accounts used at closing?
It sometimes happens that not all agreed promises found in a sale agreement can be fulfilled by closing. For instance, if closing takes place in January in a cold climate it may not be possible to test the air conditioning system.
How does the buyer know the system works? It’s best to wait until warmer [...]
What Is A Mortgage Lender Escrow Account?
When homes are bought with 80 percent or more financing from a single lender, the lender generally requires the borrower to make monthly payments to a lender “escrow” (trust) account.
The purpose of the lender escrow account is to accumulate money to assure that the borrower’s property taxes and property insurance are paid (and thus reduce [...]
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