Refinance a home
A Refinance Escrow is a transaction that is opened for the sole purpose of paying off one or more existing loan(s) or
other encumbrances and liens with a new loan(s) of Borrower’s choice.
Can a borrower choose his/her own Escrow and Title company?
Yes, The Borrower or the new loan company can choose who to use as the Escrow Company and the Title Insurance Company.
Responsibilities of an Escrow Holder
- Prepare escrow instructions and all appurtenant documents, including future amendments that reflect any changes agreed upon by the parties. The escrow instructions are the “Map” which will guide the Escrow Holder through the transaction.
- Order and review the preliminary search report issued by the Title Company. Is the property under the Seller’s name? Are there any unusual loans, judgments, or exceptions on the preliminary report that will affect the Buyer and the Seller?
- Contact and provide necessary information to Buyer’s new Lender, if any.
- Obtain payoff information from Seller’s existing liens and judgments.
- Track all conditions stated in the transaction and ascertain that they are done before the transaction closes.
- Order insurance for Buyer
- Receive and review Buyers loan documents. Are the Buyers’ names correct? Property address? Alert everyone if there are any special lender conditions that need to be fulfilled.
- Arrange for loan documents signup with Buyers.
- Figure how much money Buyer needs to bring in.
- Figure how much money Seller will receive.
- Package signed loan documents together with all special lender conditions for transmission to Lender and request for funding.
- Communicate with all parties on funding and closing
- Set up closing with Title Company, make sure there are no last minute surprises in liens and judgments against the Seller
- Balance the file with Buyer’s downpayment, Lender’s funding amount, pay all liens and invoices given to Escrow.
- Provide an individual accounting of the monies received and spent to each party.
