This month’s Escrow Tip is brought to you by…
Power of Attorney:
Closing with a POA, requires advanced approval from title.
- Escrow will need to speak directly with the principal, to confirm they are aware and in full agreement with the use of the POA.
- If the POA is needed for a medical reason, a letter from the principal’s doctor will be required, confirming need for the POA.
- If the POA is for a Buyer, the lender must also approve the use of the POA.
- The person signing as POA must be in possession of the ORIGINAL, and it must be provided to escrow, to be recorded at closing.
Loans in Forbearance or Loan Modifications:
- Turn times for payoffs on loans in forbearance and loan modifications, has greatly increased.
- Escrow should be provided with Seller’s loan information and authorization for ordering the payoff, as soon as possible, after escrow is opened.
New or recent Construction:
- If there has been construction within 75 days of closing, escrow must be provided with a copy of the construction budget and a list of sub-contractors.
- Additional time will be needed to contact and verify payments in full, to all sub-contractors.
- Underwriting must consider the construction budget, confirmation of payables, experience with the builder, and other factors, in order to give approval for early issue coverage.
Third Party Funds:
- Funds received from a party who is not a principal to the transaction, require specific instructions to escrow, as well as approval from the lender. The deposit cannot be applied to the transaction until signed instructions from the third party depositor have been received in escrow.
