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Typical Problems Encountered By An Escrow
Officer
Of the many problems encountered on a regular
basis by an escrow officer there are three that are particularly
vexing and often create hardship and stress for all involved
parties to the transaction. Fortunately, a competent escrow
officer has experience with these problems and can usually do
a lot to prevent them from occurring in the first place and
if the problem is inevitable then at least the escrow officer
can help to forewarn all parties and therefore make the resolution
as smooth as possible.
The first of these problems is when the loan documents
are being rushed by all parties so that they can close before
the end of the month and avoid an additional month's interest
being due up front with the closing costs. The escrow officer
is under much pressure to get the docs signed and sent back
to the lender. In addition there is the problem of scheduling
the appointment with the borrowers and ensuring that all of
the information in the loan docs is in accordance with the escrow
instructions. This, of course, takes time and there is usually
pressure from real estate agents and sellers and buyers to speed
up the process. However, a good escrow officer will take the
time to ensure that all requirements are being met prior to
going forward with the signing.
Another common problem is that the loan demands
that are sent out by the lender that holds the existing note
on the property being sold expire before all parties are able
to complete what is necessary to fund the new loan and close
the escrow. This then necessitates that the escrow officer get
in touch with the existing note holder and get an updated demand
for payoff, all of this while the parties are pressuring the
escrow officer to hurry up and close the escrow for one reason
or another. Usually the updated demands can be faxed to the
escrow officer by a person in authority at the lending institution,
thereby alleviating the situation.
When there is an Internal Revenue Service tax
lien on a property it can create an especially difficult problem
to overcome. The tax lien must be paid off prior to the close
of escrow and in fact is a superior lien to even the existing
first trust deed on the property. The trouble in dealing with
this situation stems from a difficulty in dealing with the beauracracy
of the Internal Revenue Service and being able to find decision
makers to deal with the problem. A competent and diligent escrow
officer will make as many calls as are necessary to get to the
right person to get an answer and close the transaction on schedule.
There are many other problems that can come up
during the process of escrow. It is only with time and experience
that an escrow officer is prepared for just about anything that
can come up. For this reason, well qualified escrow officers
come at a premium and are highly sought after in the industry.
Many escrow officers in fact start out as assistants to an escrow
officer and slowly work their way up to being an escrow officer.
This grooming allows them to get a significant amount of experience
without having all of the responsibilities of an actual escrow
officer.
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