ESCROW HURDLES

 

ESCROW HURDLES  Last week I was talking with an escrow officer who told me that short sales are still causing the biggest problems with escrows.  One such problem concerns divorced couples, one of whom had signed a quit claim deed removing that persons name from the deed.  The difficulty arises when that spouse is still on the deed of trust.  Lenders will not fund without the divorced spouse signing off on the deed of trust.  Sometimes the the spouse is not available and this creates delays until the spouse can be found.

 

Woman with a headache

 

Homeowner's Owners Association(HOA) dues may also be another glitch at the close of escrow.  Frequently when a seller is underwater on their loan they probably are not paying their monthly HOA dues either.  The amount due will be increasing during the escrow for the short sale.  Seller's agent must provide an up to date HOA demand and the current amount must be the HUD-1.

 

Another snag has come up over the Seller's Affidavit of NonForeign Status and/or California Withholding Exemption (California Association of Realtors - FIRPTA). Basically, this form requires the sellers to acknowledge if there may be a capital gains tax imposed on the Seller.  Sellers may feel that since they are not receiving any money on the sale they have no tax to pay.  That may not be the case.  If the seller has refinanced the property the seller may have to pay the tax.  The seller should contact a tax professional for advice. The FIRPTA is also concerned with Foreign Sellers/Investors.  Richard Zaretsky, Esq. blogged about foreign investor recently in more detail.

 

 

 

I CAN HELP YOU BUY OR SELL REAL ESTATE IN ALAMEDA, CALIFORNIA

EVELYN KENNEDY

EVELYN KENNEDY, CRS, SRES, ePro

CALL ME AT 510-504-5612 OR VISIT MY WEBSITE FOR FREE ALERTS FOR HOMES IN ALAMEDA, OAKLAND, EMERYVILLE, SAN LEANDRO, SAN LORENZO AND CASTRO VALLEY


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This post has been included in California Real Estate News Alameda County, CA Real Estate News Alameda, CA Real Estate News Alameda,Ca (Alameda, CA) Real Estate News
Post is included in group: 31 Days of May Challenge 2011
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2 Comments on ESCROW HURDLES

MAY
18
2011
895,046 Points 34 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Evelyn, this is very good information and I'm going to "suggest" it. Don't know if you will get a feature--who knows what the AR gods use to pick.

Thank you for commenting on my Bunny post. I'm going to multiply my bunnies again and subscribe to your blog.
8:08am • #1
547,229 Points 9 Featured Posts Outside Blog Called Shot Master

Toni:

Thanks very much.  I am happy that you feel the information I have provided is helpful.  I appreciate your taking the time to comment and suggesting it is the icing on the cake.  Thanks again.

 
11:21am • #2


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Evelyn Kennedy, Alameda Real Estate, Alameda, CA

Alameda, CA

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Gallagher & Lindsey, Alameda, California

Address: Alameda, Oakland, Emeryville, San Leandro, Castro Valley, San Lorenzo, Alameda, CA, 94501

Office Phone: (510) 748-1120

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