What Is A Sub-Escrow Fee?

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What is Sub EscrowWhat 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

Process refunds


Re-Blogged 2 times:

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  1. Pete Xavier 09/02/2012 12:16 PM
ActiveRain Community
California San Bernardino County Fontana
Posts to Localism
southern california
title company
sub escrow

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Are the sub escrow fees dependent on the loan amount

Dec 30, 2017 02:22 PM #1
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