escrow
Closing Escrow Account Requirements
The first thing you need to understand about mortgage lenders and property taxes is that the lender wants to make sure that real estate taxes are always paid. it can be difficult to close an escrow account and manage your tax payments yourself. Ilyce and Sam explain why banks are protective of escrow accounts and under what conditions you may manage your property tax payments on your own.
Contractor Fakes Out Title Company
A contractor submits fake documents to a title company and then gets paid. The home buyer asks if he has any recourse for when a contractor submits fake documents. Ilyce says it depends on the type of escrow account involved in the home purchase and that the home buyer should consult a real estate attorney to sort through whether the title company is liable for accepting fake documents from the contractor.
Short Sale or Foreclosure: Will You Save Money?
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.
How To Cancel A Short Sale
A buyer asks whether he can cancel a short sale purchase. He doesn’t want to lose his cash in escrow if he cancels the short sale. He needs to check the details of his contract before canceling the short sale. To find out how to cancel a short sale he should contact a real estate attorney.
Escrow Money Treated As Income For Taxes
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.
Seller May Cancel Sale Due to FHA Mortgage Requirement
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?
Contract Holds Answer To Escrow Refund
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.
New Construction Includes Landscaping
When you buy new construction you may expect the landscaping, including the grass, to be in order. Is landscaping complete when the yard has rocks and holes in it which prevent the grass from being mowed? It depends on the agreement that the home buyer comes to with the builder prior to moving in. If the builder committed a breach of contract by neglecting some landscaping the home buyer may be able to sue.
How Mortgage Lenders Deal With Credits
A buyer is purchasing an apartment building and the seller has agreed to give him a credit for repairs. A lender might not like the idea of taking a credit in this purchase. An escrow account might be used to pay repair contractors directly.
Conominimum Contract: Lose Money In Escrow If Contract Is Broken?
Will you lose money in an escrow account, if you try to get out of a contract to purchase a preconstruction condominium? What will happen to the money held in escrow for the contract on the preconstruction condo. Ilyce and Sam explain what the possibilities are for getting the money in escrow back from the preconstruction condo contract.
