Latest Discussions : Buying & Selling Homes

Marnie

09:04AM | 03/11/03
Member Since: 03/09/03
21 lifetime posts
We are purchasing a home and we were wondering... what makes a home fall out of escrow? We need to give notice where we are now and are a little scared to be left without a residence

rpxlpx

08:12AM | 03/12/03
Member Since: 03/13/00
1674 lifetime posts
Not sure I understand your question. By "fall out of escrow", do you mean for the closing to "fail"?

Marnie

03:27PM | 03/12/03
Member Since: 03/09/03
21 lifetime posts
yes I guess that's what I mean, I'm just a little worried because this is the first house we buy.... what goes on during escrow, why does it take so long?
Thanks for your reply

rpxlpx

04:26AM | 03/13/03
Member Since: 03/13/00
1674 lifetime posts
"escrow" is the money that is held by the mortgage company for the purpose of paying your yearly taxes and insurance premiums. They do this because it's in their best interest to be sure the taxes are paid and that you have homeowners insurance. For example, if the house burns down and there is no insurance, they would have a difficult time making you repay the loan over the next 30 years - so they would lose big.

Closing occurs after the mortgage company is satisfied that the property is really worth what you're paying for it, and also that you can reasonably make the monthly payments. They also want to be sure that there is a free and clear title to the property. These things take some time. It can be a difficult experience, especially if you've never done it before.

The mortgage company should tell you in advance how much money you need at closing. There will be some expenses. Sometimes most of these expenses are "rolled in" to the loan, sometimes not. All that should be planned ahead.

Good luck with your new home.

Marnie

04:35AM | 03/13/03
Member Since: 03/09/03
21 lifetime posts
Thank you for your explanation!!!! It really helped


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