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Closing the Sale in New Orleans, Louisiana
Escrow: When you're closing on your new home, an escrow company is used to make sure the transaction will close appropriately and in a specific time frame.
A property is said to be in escrow when in the closing transaction, funds is held by a third party on behalf of two parties (in this case, a buyer and a seller) when the transaction is taking place.
PayPal is a simple way to think of an escrow company.
The escrow agent makes sure that the terms and conditions of the agreement between the sellers and the buyers are performed in preparation of the sale being finalized.
These are the pieces of paperwork that escrow companies usually compile:
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
- Requests for payment for various services to be paid out of escrow funds
- Loan documents
- Tax statements
Upon finishing of all portions of the escrow, closing can take place.
All expenses like title insurance, inspections and real estate commissions are paid.
You'll then secure the title to the home and the title insurance gets issued as noted in the escrow instructions.
When closing is done, you'll submit a payment to the escrow company.
You'll know when it's time to submit the form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow guidelines
- Request title search
- Comply with the bank's standards as specified in the escrow agreement
- Accept payments from the buyer
- Prorate interest, insurance, tax and other payments according to guidelines
- Record deeds and other documents as instructed
- Obtain title insurance policy
- Close escrow when all instructions of seller and buyer are complete
- Disburse funds and finish instructions
- Offer advice - the escrow holder stays a neutral, third-party status
- Give insight about future tax estimations
Mortgage Escrow Account
A Mortgage Escrow Account is used to make payments for on-going fees while there is a loan on the house.
Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.
This is a quick run-down of the escrow process. Your specific process may vary depending on your bank and your escrow holder.