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10 Things to do to make sure your escrow doesn't close on time!

Ten Things to do to make sure your escrow doesn't close on time!

Don't get the signed purchase contract and addendums to the loan officer/bank right away.
Don't meet the appraiser at the property asap to complete buyers appraisal.
Take your time getting the HOA docs to Lender on condo and townhome.
Provide a seller credit to the buyer without letting the lender know and have the credit be for things other than the non recurring costs (wait till the signing of the loan papers to let lender know).
Mention in the purchase contract a pest inspection, and that the buyer is purchasing the property as is, without providing pest clearance if Section 1 noted in inspection.
Don't have the utilities (water and gas/electric) in working condition when the appraiser does appraisal.
Have the purchase contract list only the husband or the wife (not both), but have the lender do the approval on both of them.
Change the close of escrow date to 2 wks earlier, without letting the lender know.
Change Title/Escrow companies without letting the lender know.
Don't stay in contact each step of the way with the lender.

I know you have never done some of these things, but you would be surprised how many times they still happen and to seasoned agents......

Moral of the story?

Team work.......the escrows that move the smoothest and are the least stressful to your clients are the ones where everyone (Title, lender & Agents) work together to get the escrow closed. All are irreplaceable!

I attend every signoff and sign my clients off at 3 days before coe, and usually 1 wk......in 25 years, this has been the single most significant thing I do....it allows for murphys law, and time to make corrections well ahead of time...many times without the borrowers having to be aware of the hick ups! Teamwork is critical!

Roger

Roger Hunt

Private Mortgage Advisors (an affiliate of Wells Fargo Bank, N.A.)

Burlingame,CA 94010

650.796.0326

www.rogerhunt.com

roger.m.hunt@wellsfargo.com

Posted by Roger Hunt on 10/20/2009 06:26 PM

Comments (39)

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39 Comments on 10 Things to do to make sure your escrow doesn't close on time!

OCT

Roger, Great Points on What Not To Do, No Closing No Paycheck

Communicate. Follow through. Keep everyone informed. Don't make changes without communicating.

Thanks for writing another informative post for us today. Best to you.

Roger - BRAVO!!! It never ceases to amaze me the stupid stuff people do during a loan transaction. SERIOUSLY!!!

Some of this stuff is just plain common sense.

Great checklist!

Thanks Jane, Donna, Eric, Donne & Barb for your comments!

It truly takes a team.....you never know when someone else will catch something you miss......having all these eyes on the job really makes a difference,

thanks

Roger

P.S. Just doing this makes us stand out......keep up the good work!

I like that 3 days prior I might have to see how that works.

Heather,

thanks for your comments....signing ahead of time really makes a difference.

It is however more difficult to do this with the current HERA/Hoepa requirements, but if you are proactive with your lender, and borrower, you should be able to do this...really helps you close all escrows on time...thanks

Roger

OCT

Great list Roger. I would add, "don't plan on taking a vacation a week before sign-off." True story...I had to make them cancel..

Bottom line, when you drop the ball, the deal is no more...

Great Checklist, keep up the great posts

Great Post. I have seen a couple of these first hand. Meeting the appriaser with comps in hand has been on the top of my list of things to do the last two years.

Great list. I just had a deal a a few weeks ago where a seller credit of $12,500 was negotiated without telling me. This was enough of a credit to affect the APR, triggering MDIA and thus causing a delay since we needed to redisclose and then wait through the recission period.

On the Appraiser Special Instructions area. Don't tell the appraiser that the owners have a large mean dog in the backyard. Suprise Suprise.

Hi Roger. Great list. If we remember teamwork, we're 95% of the way home. Congratulations on your feature! Well deserved.

You are right on, Roger. When there is an escrow open, I ride herd until it is finished. I always confirm every e mail or fax sent. Going to every signing is something else that is important to me. Always check the HUD 1 and get a copy of it at the closing. If something is amiss it can be detected immediately and corrected before it falls through the cracks. One more, thing. When I call the escrow company, if it is important, I will stay on hold rather than leave a voice mail.

Steve

Rick, Ben, Greg, Ryan, Tim, Joseph, Lottie & Steve,

Thanks for your great comments.....boy did I hit a nerve or what?

It never ceases to amaze me who overlooked these items are. A seasoned agent really needs to prepare the buyer for the loan process so they know how important these things are. The agent really needs to think of the lender like an attorney, it is better for us to know more than we need to than the other way around......if you disclose everything up front the loan officer has a chance to address them upfront and avoid derailments......of course not all lenders are equal....some are sloppy, unprofessional, unethical, and only care about volume....avoid these whenever possible. You have more control than you know about leading your buyers in the right direction......let them know what can happen if the lender is out of state, out of town, out to lunch.....using someone you trust and know is gold for you and your buyer.....buyers need to know how important a great lender really is......and by the way.......when is the last time you told your Great lender how much you appreciate what they do? We are one of the unsung hero's in real estate....along with Title/Escrow agents!

It seems all so simple. Until something goes wrong. Good list.

Don't have the utilities (water and gas/electric) in working condition when the appraiser does appraisal.

This is happening quite frequently here in Arizona. The listing agents won't turn it on so it's up to the buyer.

Thanks, Roger. Love the list! And I can add one more glitch. In my latest close, my clients, the buyers, sold their old home and were using those funds for direct deposit into our close. However, their selling agent (who also represented the buyer in that transaction) dropped the ball on almost everything, delayed their close almost 3 weeks and at the last minute still did not have a vital piece of paperwork regarding an easement notarized. Their lender refused to close until that was delivered. This was frustrating but I sure learned a great deal. Next time I am in a transaction that depends on another transaction to precede it, I will ask many more questions and be a real nag until it is all completed.

Al, David & Morgan,

thanks for your comments....appreciate the blogging!

Another things that I missed was that delaying the close of escrow may require the buyer pay points to extend the rate beyond the initial rate lock....in some cases this becomes a deal breaker.......we can educate our client enough!

thanks

Roger

Great list! Thanks for sharing.

J.T. thanks for your comments....glad you liked it!

I am glad you pointed a bunch of the steps we take to keep a transaction going smoothly. Most buyers and sellers don't understand all that we do from contract to close

Roger, I couldn't agree with you more! The escrow officer inevitably gets the blame, and they turn themselves inside out to make everyone happy! Great post, should be required reading for every new L.O. !

When you have something in escrow you need to stay on top of it and spot problems early.

These are really good reminders whether we are starting out in the business or been here for years. It's easy to let something slip through the cracks, especially #7. The hard part is trying to stay on top of this when you are the listing agent.

Sandy, Gene & Bev/Bob,

Thanks for your comments. Our business really takes a team, and the sooner we realize how important that is the better off we will be. What makes all of us very good at what we do is we tend to be control freaks....in a business where we cant control all areas this can make you pull your hair out......I find being more proactive is the one thing we can do to avoid the last minute surprises.....if we are working with someone we are not familar with, it is good to set up your expectations (in a kind way) so that everyone can be on the same page....as a lender, I know when the docs should be ready, and when they go out....so it is natural for me to be the one that lets escrow, realtor and borrowers know we are ready to go in to sign....I try to find out what times all of us have in common to allow a signing that all can be at (including me)....this really helps....I ck title companies availabilities, then borrowers, then realtors, and schedule the signing when it works best for all.....makes a big diff......to me the signing is the delivery room of our lil baby (the new home purchase)....I wouldnt miss that for the world....if it is done right it allows the borrower a moment to thank all of us for all our hard work.....makes it worth it all!

Roger

Evening Roger, Terrific list. Perhaps our most critical job is to have a system and stay on top of it ! Well done .

In the middle of negotiating an offer, I feel it is important to communicate with the other agent and other involved parties. I'm not looking for any surprises at the last minute. I once had an agent thank me for taking time to do this. It should be Business 101 instead of war of the agents. Great job!!

Bill and Latonia....thanks for your comments.....you are both right...this should be Business 101, but there is alot of carelessness out there.....the part of my biz that frustrates me the most is micromanaging others....but that comes with the job......thanks for your comments.
Roger

More awesome lists! I have a ton of stuff to remind clients about...lol Good points, all!

Duh! Always communicate often and as early as possible.

OCT

Vanessa & Jirius,

thanks for your comments....your right....none of these are rocket science or newsflashes but it is amazing how often over looked.....you cant repeat them to many times....thanks

roger

OCT

That's good stuff Roger. However, that may avoid the thrill of the bombshell dropping 2 days before closing!

OCT

Common sense things Roger. Yet, so many people STILL do not get it right.

Check & double check to get everything done on time. Common sense stuff but alot of people don't know or don't follow it. Notice that common sense is no longer common?

OCT

I can't believe agents make these mistakes.

OCT

Wayne, Mark, Lynn & Mike,

thanks for your comments

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