REO Escrow Services
Real estate owned (REO) or foreclosure escrow transactions are very different from regular real estate escrow, and in many cases more complex. At Bayside Escrow, we understand that these transactions require a specialized approach, as well as strict adherence to sale conditions when the property is owned by a financial institution.
The basic REO process begins with mutual acceptance of the Purchase Agreement, much like a regular real estate transaction. Buyers must remember that they are not in escrow with a homeowner, however, as a bank or lender is the seller, and the financial institution has strict procedures during the process.
As the seller is a corporate institution with a large volume of properties, the typical time line of a standard escrow does not apply in an REO environment. To ensure REO escrow transactions are closed as quickly as possible, the officers at Bayside Escrow proactively manage and resolve any problems before a delay can occur and monitor the performance of the transaction daily.
Throughout much of California, REO properties still account for a significant portion of inventory in the real estate market, and we find that these transactions bring a great deal of frustration and confusion for those involved. Bayside Escrow has agents with years of experience handling these unique transactions.
Bayside Escrow handles every aspect of REO closing by:
- Providing full management and action as a neutral third-party to close the real estate transaction within the guidelines set forth in the contract while serving as the depository of funds and closing costs
- Responding to all communications in a timely manner
- Keeping all involved parties informed of the escrow progress every step of the way
- Following mutual instructions expeditiously
- Preparing escrow instructions and ensuring all documents are executed properly
- Issuing receipts for deposits of funds in the trust account
- Handling of loan documents and instructions from the new lender
- Coordinating the services of a notary public
- Ensuring proper proration and adjustment of taxes, HOA dues, etc.
- Preparing and sending out the estimated and final settlement statements and HUD-1
- Instructing the Title Company to record documents, such as the Grant Deed and Deed of Trust
- Disbursing funds to proper parties and closing escrow, as authorized
- Maintaining security and accountability of funds due to principals by providing several disbursement options
- Closing escrow in accordance with mutually agreed written terms
- Ordering all applicable reports and disclosures, such as the preliminary title report and HOA documents
- Complying with city, state, and federal guidelines as applicable to the subject property
- Obtaining approval of documents and reports from all parties
- Securing payoff demands or beneficiary statements from existing lenders
- Acquiring necessary documentation to clear outstanding liens attached to the property
- Requesting demands conveyances of mortgages or the deed of trust to be paid off in escrow
Closing an REO escrow is inherently complicated. Count on Bayside Escrow to eliminate costly delays and close as quickly as possible with a streamlined, simplified process that will give all parties involved confidence in the escrow process.