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ESCROW...can someone explain?
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julybride0706
LIF Adult
Member since 3/07 1376 total posts
Name:
kaitlyn
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ESCROW...can someone explain?
Escrow is a process that provides for a fair and equitable transfer of property from one person to another.
ok...so, i know that it's a "process" but do you really need to pay someone for it? what is the pros and cons of it?
how about escrowing tax? 
someone please please dumb it down for me 
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Posted 6/26/08 9:59 PM  |
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qtdimps231
LIF Toddler
Member since 11/07 477 total posts
Name:
Diana
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Re: ESCROW...can someone explain?
say you're a buyer:
when you go to contract your down payment is held in an escrow account by the seller's attorney. at closing that attorney brings that down payment for the bank.
with taxes...the bank always wants a certain amount of months in the bank at closing. like mine requires 6 months escrow at closing. so my taxes are $775 a month. i have to pay an extra $4650 at closing to be held in an escrow account in the bank. when you pay your mortgage every month the check includes your taxes. the taxes get dispersed to the town. if the taxes go up or there is a need to use the escrow money the bank can take it out of the escrow account. your monthly payments are always paying for the previous month.
hope that didnt confuse you.
ETA:
during contract if the seller requests to stay in the house for an amount of time after closing you can have them put in escrow money to assure nothing has been damaged after they leave.
also, if you are waiting for a C/O to come in, the seller can also put money in an escrow account to assure you and the bank they are getting the C/O. if they dont, you keep the money. if they do it is returned to them.
Message edited 6/27/2008 6:54:26 AM.
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| Posted 6/27/08 6:52 AM |
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julybride0706
LIF Adult
Member since 3/07 1376 total posts
Name:
kaitlyn
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Re: ESCROW...can someone explain?
Posted by qtdimps23
say you're a buyer:
when you go to contract your down payment is held in an escrow account by the seller's attorney. at closing that attorney brings that down payment for the bank.
with taxes...the bank always wants a certain amount of months in the bank at closing. like mine requires 6 months escrow at closing. so my taxes are $775 a month. i have to pay an extra $4650 at closing to be held in an escrow account in the bank. when you pay your mortgage every month the check includes your taxes. the taxes get dispersed to the town. if the taxes go up or there is a need to use the escrow money the bank can take it out of the escrow account. your monthly payments are always paying for the previous month.
hope that didnt confuse you.
ETA:
during contract if the seller requests to stay in the house for an amount of time after closing you can have them put in escrow money to assure nothing has been damaged after they leave.
also, if you are waiting for a C/O to come in, the seller can also put money in an escrow account to assure you and the bank they are getting the C/O. if they dont, you keep the money. if they do it is returned to them.
thank you! 
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| Posted 6/27/08 10:37 AM |
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