Some of the common hurdles that slow or stop an escrow transaction are: BUYER:
• The Buyer does not have the additional funds
needed to close transaction
• The buyer brings a personal check for closing
• Husband/wife comes to sign without spouse
• Escrow Officer was not aware of marriage,
separation, divorce, sole and separate property, death
of a joint tenant, etc., making all papers incorrect
• One of the spouses is out of town
• Buyer signs loan papers incorrectly
• Judgments arise during escrow period
• Buyer does not have proper info for notary
• Buyers make a major purchase on Credit
SELLER:
• Demands on existing loans are not yet in escrow
• Releases are not yet in escrow
• Judgments arise during the escrow period
• Did not disclose to Realtor that homeowners dues
are due on the property.
• Seller does not have proper info for notary
FIRE INSURANCE
• The policy wasn't ordered soon enough - escrow
cannot order without lender's instructions
• The policy reads incorrectly -addresses, names, etc.
• The coverage is not for the correct amount
• The buyer used an Out-of Town (State) insurance
agent
TERMITE & PEST CONTROL:
• The inspection was done on the wrong property
• No report, inspection or clearance has been received
in escrow
• The clearance was not completed
• The addresses are incorrect -the Lender will not
accept
• Certain areas were not checked but a clear report
was issued - the lender will not accept
LENDER:
• Points/Interest rate goes up: parties are not notified
• Miscellaneous charged were made and not disclosed
to parties
• The Lender has called for additional conditions
Comments(1)