One escrow "specialization" is "refinance escrows". In fact, several escrow officers specialize in this type of escrow because it allows them the opportunity to work directly with lenders and homeowners.
The refinance escrow is typically a little more streamlined than a resale escrow. The homeowner does not have to have a termite inspection or purchase a home warranty. There are fewer parties involved in the transaction, so communication moves a little faster. However; all the other steps are there.
The escrow begins with an "open order". The loan officer will call the title company to open up an escrow file and at that time we will begin gathering the information necessary to close the transaction. A "demand" is sent to the previous lender to determine the exact payoff amount of the old loan. A preliminary report is ordered so that the condition of the title to the property can be checked. If there are any liens showing, the title company will work with the client and the new lender to make sure those are cleared.
Now it’s time for the lender to complete his or her job. Next the loan must be approved and documents sent to the title company. Refinances typically take from 30 to 60 days to complete, depending upon the lender and on any credit difficulties which must be cleared. Once all the documents are signed, the title company will send them back to the lender for funding. The law requires a "three day recession" period on all refinances, which means that the new loan cannot be recorded until three working days have passed after the documents are signed. Then, the new loan will be recorded and a wire transfer of the funds will be requested. The title company generates a check to pay off the old loan and make whatever other payoffs specified within the written escrow instructions.
or close escrow?
report
needed?
the costs?
for what?
insurance
escrow
