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

 

Fast Fact ^#44

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.