What Is A Sub-Escrow Fee and Why Do I Have to Pay It?
Sub-Escrow is a service provided by Title Companies where the Buyer's lender requires the title company to take the Buyer’s loan proceeds and send to the Seller’s mortgage payoffs. The process originated in Southern California. The perception is that this process gives the Buyer’s lender an insured closing and a guarantee that their mortgage to the Buyer will be in a first lien position on the property.
A Fee Charged By A Title Company For The Performance of the Following Services:
Coordinating with escrow/lender for recording
Verify & update pay-off demand figures with lender
Verify payment of property taxes
Calculate the pay-offs on the day of closing
Disburse all pay-offs & net proceeds per instructions
Upon confirmation of recording, notify escrow company