Happens To My Transaction After Funding?
traditional real estate transaction, be it a sale or refinance
of the subject property, it is the Escrow, the repository
for all documents, agreements and funds, that should direct
the transaction, pursuant to instructions from the parties
to the transaction, buyer, seller, lender, etc.
Company takes their instruction from the Escrow Company at
all times. The Escrow Company opens the initial title order,
receives the Preliminary Report and advises the Title Company
as to what items on the report are acceptable and which the
parties wish removed. The Title Company will then advise the
Escrow as to what items it needs or what steps might be taken
to remove the objectionable items. When all objectionable
matters have been cleared from the Title Report, and all other
contingencies in the transaction have been met, the Escrow
Company may contact the Lender and request funding. Sometimes
the Lender takes this task upon them and notifies the Escrow
Company, after funding. In any case, the funds are then transmitted
to the Title Company, normally via wire transfer and are received
by the Title Companys bank. At the time the funds are
requested, the Escrow may authorize recordation with the Title
Escrow Company has called to set-up the recording,
the Title Company confirms receipt of all
documents, funds and statements of information and transmits
the documents to the County Recorder for recordation. At the
same time, the Title Unit forwards all demands, title fees
and taxes due to the Title Company Sub Escrow Department.
Upon confirmation of recording, the Sub Escrow Department
pays off the demands and taxes and collects the title fees
from proceeds, forwarding the remainder to the Escrow Company.
things to remember
funding requirements with your client as early as possible.
This will allow both the Title and Escrow Companies to timely
assist your client in clearing some of those last
your escrow company changes banks, be sure that your Title
Officer is notified. We have actually had a couple of instances
lately where funds were wired to a bank no longer used by
escrow. It can be difficult and costly to retrieve these
fund, not to mention the PR damage it can do to your client
of information MUST be sent to your title company BEFORE
funding of the loan. The sooner your Title Officer gets
this information, the less likely you are to have a funding
your transaction involves a credit line Deed
of Trust, review the lenders requirements for payoff.
Most often, this type of payoff will involve a letter that
must be obtained from your client. Lenders will not freeze
these accounts without receiving this letter and Title Companies
cannot pay off accounts that are not frozen
(Unfrozen accounts can still be accessed by the borrower).
you have any questions or concerns about post funding matters,
contact your Title or Escrow officer. When working with
knowledgeable and experienced professionals, and, with a
little patience, most catastrophes can be quickly resolved.
payoffs require that the Lender being paid off received
the entire payoff amount on or before the first of the month.
If your transaction closes on a Friday, at the end of a
given month, your Title Company will compute and collect
the next months payment as part of the payoff. The reason
for this is that the receiving lender generally has a cutoff
time for receiving payoff wires. Especially with those transactions
involving payoff of an East Coast Lender, there
is no guarantee that, even though the wire may be sent out
early onthe following Monday, the lender will receive the
payoff funds before the cutoff time. As an alternative,
you may request that your Title Company hold
this additional months payment pending verification
of the payoff lenders acceptance of the wire as full
payoff of the loan. In this circumstance, the Sub EscrowDepartment
will confirm acceptance of the payoff and, if accepted,
will forward the funds held to Escrow for disbursement.
IF THIS IS AN OPTION YOU WISH TO EXERCISE, LET YOUR ESCROW
COMPANY KNOW PRIOR TO FUNDING so that they can then properly
advise the Title company prior to close. We hope that this
information will help you to understand some post closing
procedures and problems that may
occur after funding.
if you have any questions, please contact your Escrow or Title