Day in the Life of an Escrow: The Officer
by Tanaz Akhlaghi on December 29, 2009*this is Part Three in a five-part series on the escrow process. Special thanks to Michael Mckeon for sharing his insights on this intricate process.
Earlier this season, I wrote about how the buyer navigates the escrow process when shopping for a new home, and then I followed that up a few weeks later with a feature on the day in the life of a seller during the escrow phase.
All the while that the buyer and seller are doing their part during an escrow, the escrow officer is usually working behind-the-scenes to help make sure that things run as smoothly as they can. How does an escrow officer actually help you?
~ the escrow holder is a neutral third party and holds legal documents and funds on behalf of the Buyer and Seller and distributes funds according to their specific written instructions.
~ upon receipt of the Purchase Agreement and Buyer’s initial deposit, escrow holder orders a Preliminary Title Report (Prelim) and any supporting documents.
~ escrow holder then prepares escrow instructions and required documents in accordance with the terms of the sale.
~ with permission from the Seller, escrow holder orders demands on existing deeds of trust and judgements or liens, if any.
~ the escrow officer reviews the Prelim, payoff statements, loan package and any other documents received in escrow; the escrow officer also reviews any conditions required by the lender and assures that hazard and title insurance requirements have been met prior to the close of escrow.
~ the Buyer’s loan package, estimated closing statements, and other related documents are forwarded to to Buyer and Seller for approval and signatures and the remainder of Buyer’s funds is requested.
~ the escrow officer then reviews the signed instructions, packages and forwards loan documents to lender, then requests and receives proceeds of the loan from lender.
~ once all conditions have been met, the escrow officer determines when the transaction is able to close and notifies all parties.
~ the deed, deed of trust and any other document necessary to complete the transaction gets recorded at the County Recorders office with assistance from a Title representative.
~ the escrow officer orders Title insurance policies.
~ the final settlement statements are then prepared, proceeds are disbursed to the Seller, paying off any existing loans and other obligations, and escrow closes.
~ the escrow officer delivers any remaining funds, documents and statements to Buyer, Seller, Agents and lender.
Buying or selling a home is a serious financial transaction. It’s not like picking up a decaf mocha at Starbucks, when the cashier simply hands you a receipt and your change! There is much more money at stake, and it can be helpful to remember that there are lot of responsibilities and roles when the ownership of a home changes hands — many professionals are completing important tasks on your behalf.
What has your experience been dealing with an escrow officer? Please share your thoughts. I always enjoy hearing from you!
Related Articles:
Day in the Life of an Escrow: The Buyer
Day in the Life of an Escrow: The Seller
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I like this feature, Tanaz. I find it orienting to see checklists like this, that provide a simple, helpful overview of a process that can seem intricate. Solid!
I have an escrow background, and I am appreciative of all the details an escrow officers tends to during a transaction. With this checklist, both Buyers and Sellers can learn and become more comfortable with what goes on behind the scenes!
[...] up with a feature on the day in the life of a seller during the escrow phase. I also wrote about what an escrow officer does behind the scene to help make sure that things run as smoothly as possible. How does the lender fit into the [...]