An escrow account is where you can put money to ensure that your real estate taxes get paid on time. Escrow accounts may be managed by either a mortgage company or the homeowner himself. Putting money in escrow means to set money aside in this account for real estate taxes. Learn the pros and cons of who should manage an escrow account.
When you pay off your mortgage loan in full, your lender is required to return any tax and insurance mortgage escrow money back to you. Q: I hope you can help me with this question. I have been searching the Internet and reading as much as I can on The Dodd-Frank Act and cannot find [...]
Many people think you save money by buying a home that's a short sale or foreclosure. That's not necessarily true. Even if you do save money on a short sale it can take longer to close on escrow. California real estate agent Charlotte Laws talks about saving money with short sales or foreclosures.
When you receive money from a canceled contract, it's usually treated as ordinary income for taxes. When a real estate contract goes bad, the money put into escrow is treated as income as opposed to capital gains. The escrow money will be taxed at a higher rate because the ordinary income tax rate is higher than the capital gains tax rate.
When you buy a home with an FHA loan you have to follow their rules, including one where you can't close on a home if it was just sold 90 days earlier. If a seller is eager to sell he may not want to wait that long. Can the seller keep the buyer's deposit if the closing gets delayed or canceled?
What's the penalty for backing out of a real estate contract? If the house failed inspection you might have cause to withdraw, but if you've simply changed your mind, you might lose the money in escrow. Look at your real estate contract for the terms.