Services - Escrow Process

Sellers - Our Escrow Professional handles your escrow from beginning to finish….

It is the wise owner that prepares for problems before they happen. I also believe in this concept for my business.

Years of experience and hundreds of successful closings have armed me with the tools to overcome each and every problem encountered here; however, it would be unfair for me to say that every problem can be solved.

It is my job as a real estate agent to act on behalf of my clients as these issues arise, and to employ my expertise in order to overcome them quickly and successfully.

I have placed a delay of closing estimate next to each problem and the ones with asterisks (*) are potential deal killers.

Lender:

1. Lender does not properly pre-qualify borrower. 2 weeks*
2. Lender decides last minute they don’t like borrower. 2 weeks*
3. Lender decides last minute they don’t like the property. 2 weeks*
4. Lender wants property repaired or cleaned prior to close. 1 – 3 weeks
5. Lender raises rates, points, or costs. 2 weeks*
6. Borrower does not qualify due to addition of late information. 2 weeks*
7. Lender requires a last minute re-appraisal 2 weeks*
8. The borrower does not like the fine print in the loan documents 3 days* that we receive 3 days before close.
9. Lender does not simultaneously ask for information from the 1 – 4 weeks buyer, asks for parts in an untimely manner.

Cooperative Agent:

1. Does not pre-qualify their client for motivation to buy/sell. 2 weeks*
2. Upsets client over minor points. 1 – 3 weeks
3. Does not communicate with their client. 1 – 4 weeks
4. Isn’t organized in closing paperwork, needs signatures, more 2 weeks* information, etc.
5. Poor skills with client – unable to satisfy their needs. 2 weeks*

The Buyer:

1. Not truthful on loan application. 1 week*
2. Mis-communicated their motivation to buy 2 weeks*
3. Submits incorrect information to agent & lender 2 weeks*
4. Source of down payment changes. 1 week*
5. Change their mind. 1 week*
6. Finds another property better suited for them. 2 weeks*
7. They are “nibblers” (always negotiating). 2 weeks*
8. The buyers bring an attorney into the picture. 3 weeks*
9. Paperwork is not executed in a timely manner. 2 weeks*
10. They do not deliver proper funds to the closing agent. 2 weeks*
11. 1Job change, illness, divorce, or other financial setback. 1 week*
12. 1Short on closing money. 1-4 weeks*
13. 1Does not obtain insurance in a timely manner. 1 week*
14. 1Family members change their interest in the property. 1-3 weeks*

Escrow:

1. Fails to notify agents of unsigned or un-returned documents. 1 week*
2. Fails to obtain information from beneficiaries, lien holders, title 1 week* companies, title lien holders, insurance companies or lenders in a timely manner.
3. Incorrectly delivers paperwork. 1 – 3 weeks
4. Incorrect at interpreting or assuming aspects of the transaction 1 week* and then passing these items on to related parties such as lenders, attorneys, buyers and sellers.
5. Busy, doesn’t follow the deal properly to closing. 1 – 3 weeks
6. Doesn’t coordinate wells with all parties for signature, 1 – 4 weeks*
   needs and deal requirements.

The Seller:

1. Loses motivation – e.g., job transfer did not go through, 1 week*
2. Illness, divorce, change of mind. 1 week*
3. Has hidden defects that are subsequently discovered. 1 week*
4. Home inspection reveals average amount of defects in which 1 week* they are unwilling to repair.
5. Gets attorney involved. 1 week*
6. Removes property from premises that the buyer believed 1 – 3 weeks was included.
7. Is unable to clear up problems or liens. 1 – 3 weeks
8. Last minute solvable liens are discovered. 1 – 3 weeks
9. Seller did not own 100% of property are previously disclosed. 1 week*
10. Seller thought partners signatures were “no problem”, but were! 1 week*
11. Seller delays moving date. 1 day*

Acts of God:

1. Earthquake, tornado, fire, slides, etc. 1 week*
2. The Appraisal:
3. The appraiser is not local or misunderstands the market. 1 – 3 weeks
4. No comparable sales available. 1 week*
5. Appraiser appointment delays. 1 week*
6. Incorrect appraisal – really out of line. 1 week*
7. Appraisal too low. 2 week*

Insurance Company

1. Inability to obtain proper coverage 1 – 4 weeks*
2. Natural disaster/binding moratorium 1 – 4 weeks*

Inspection Company:

1. Too picky. 1 day*
2. Scares buyers. 1 week*
3. Infuriates seller. 1 week*
4. Makes mistakes. 1 – 3 weeks
5. Delays report. 1 week*

Title Company:

1. Does not find liens or problems until last minute. 1 week*
2. Does not bend rules on small problems. 1 – 3 weeks
3. Poor service. 1 – 3 weeks
4. Loses paperwork. 1 – 2 weeks

I appreciate the time you have spent to understand the challenging time between contract acceptance and close. I wanted you to understand these potential problems for the following reasons:

1. A transaction cannot close until escrow has cleared up any and all of the previously mentioned problems.
2. To let you know that I have great experience in heading off these potential pitfalls and thus can hopefully make you feel more secure should you chose to hire an agent.
3. To make you aware of these pitfalls so that you can expect potential problems, even if you choose not to hire an agent to represent you.

Once an escrow is opened, my team works diligently to address any and all of the situations outlined above to bring your deal to a successful close. We are in constant, daily contact with the above mentioned third parties to exchange information and details that ensure a favorable transaction.

Please be assured that myself and my team members will remain in communication with you throughout this process and am here to address your questions or concerns as they arise.

Sincerely,

Michele Holloway