Tag Archive for: escrow

Impound or Escrow Accounts & Why We Do Not Recommend Them

Impound or escrow accounts are maintained by lenders or servicers and are set up to allow buyers to pay their property taxes and hazard insurance on a pro-rata monthly basis instead of on a semi-annual or annual basis. For example, if property taxes are $6,000 per year, and hazard insurance is $1,000 per year, a […]Read More

What Is An Escrow Holdback?

We recently had a deal on a cute condo with a loft area. The issue was there was no railing on the area of the loft adjacent to the stairwell, so the appraiser called it out as a health and safety hazard (someone could literally fall down the stairs). The underwriter of course called for […]Read More

Reminders: Amendatory Clause; RPA Signatures; Seller = LLC; Deceased Seller

FHA and VA Amendatory Clause. This form is required for all VA and FHA loans. It lets buyers know they are entitled to the appraisal and not bound to buy the property if it does not appraise. This form needs to be signed by all parties and dated prior to the appraisal. Residential Purchase Contracts […]Read More

Helping Lender Close On Time: Complete/Clean Contracts & Addenda a Must

We often remind Realtors, Escrow Officers and Borrowers that “everyone has to be on board” if we are going to close on time, especially if we’re closing in 15 days. Realtors are often unaware, however, that they are sometimes the biggest impediment to closing on time. For starters, we need escrow information, basic contract terms […]Read More

JVM Now Has 15 Day Close; Same As Cash; We’re For Real

We are pleased to announce our “Fast 15!” We are shortening our fast escrows from 17 days to 15 days. We are able to do this b/c we have learned how to navigate TRID, and we can get CDs out early. We love offering fast closings, even in slower markets, b/c they make JVM-financed offers […]Read More

Seeing the Unforeseeable – Not Possible; No Crystal Ball

We often pre-approve very strong borrowers only to see their transactions come to a halt after they get into escrow b/c of unforeseen circumstances. Invariably, we get terse emails from either the borrowers or the Realtors telling us that we should have foreseen the issue(s). The issues that blow up transactions, however, are almost always […]Read More

Impounds vs. No Impounds; Sometimes No Choice

We often get asked for advice in regard to taking an impound account or not. An impound (or escrow) account is an account held by a lender or a servicer that accumulates property tax and/or hazard insurance payments. The lender/servicer then uses those funds to make the semi-annual or annual property tax and insurance payments […]Read More

Converting “Cash” to Down Payment Funds – Gifts

We frequently have borrowers with substantial sums of cash that they want to use for a down payment. They cannot simply deposit the funds in escrow or into their bank accounts b/c lenders will want to know where the money came from. Lenders prohibit the use of un-sourced and unseasoned funds in all transactions. Buyers […]Read More

Gift Funds Should Go Straight to Escrow, Not Into Bank Account

We are seeing buyers use gift funds more often than ever lately. This is a reminder that it is much easier if borrowers wait until they are in escrow before receiving gift funds. The funds can then be deposited by the donor or “gifter” directly into escrow. For conventional loans, when gift funds are deposited […]Read More

60 Day Rent Backs Allowed; Good for Sellers Who Need New Home

Quick Reminder: Lenders allow rent-backs for as long as 60 days after close of escrow. Hence, sellers can remain in a home and rent it back from buyers for 60 days, giving the sellers time to find and move into a new home. Jay Voorhees Founder/Broker | JVM Lending (855) 855-4491 | DRE# 01524255, NMLS# 335646Read More

Cash Purchases with “Delayed Financing;” No Gift Funds For Cash

This is a reminder that buyers who purchase properties with 100% cash can obtain cash out loans against those properties immediately after close of escrow. This is called “Delayed Financing.” Delayed financing requires that buyers use ONLY their own funds. If buyers use gift funds for a cash purchase, they must wait 6 months from […]Read More