As a real estate agent, you are accustomed to being called upon by anxious buyers or sellers to answer a myriad of questions during the time a property is in escrow. One of the most common questions asked by sellers is, “Do I need to make a payment on my existing loan while I’m waiting for escrow to close?”
The answer, of course, is yes. As you know, a seller’s obligation to the current lender continues until such time as the lender receives pay-off funds through escrow.
But while the answer may be obvious to you, it may not be so evident to an eager seller who already feels invested in a new property. As the seller’s agent, one way to allay your seller’s concerns and help establish yourself as a trusted professional is to clearly communicate these points to the seller once the home is in escrow:
Continue to make loan payments as they come due– Even though the current home is in escrow to be sold, the sellers will avoid late charges and possibly negative effects on their credit report by continuing to make regular loan payments at the time they come due until escrow closes.
Keep abreast of the expected closing date– As the closing date nears, sellers can talk to the escrow officer – or ask their agent to do so – about coordinating the final loan payment. If escrow is expected to close within a few days of the payment date, and a late charge will not be assessed, the seller may elect to delay a day or two because the lender is about to be paid in full. In fact, if the payment is made immediately prior to the loan payoff, the lender may require that funds equal to the amount of that payment be held in escrow until the check has cleared the bank. (In such cases, the escrow officer will refund this money as soon as the lender’s hold is released.)
Consider making an early payment– In spite of the most careful planning, however, a number of factors can affect the actual closing date. One option, to avoid the inconvenience of a possible hold on the seller’s funds, is for them to make a payment well in advance of the closing date. That will ensure the existing loan remains current even if closing is delayed, and the new loan balance will be reflected in the lender’s final payoff.
Serving more than 50 of the 100 largest metro areas in the United States, independent sales associates affiliated with NRT distinguish themselves every day by creating exceptional real estate experiences for their customers and their communities. But don’t just take our word for it. In 2015, REAL Trends ranked NRT as the #1 Residential Real Estate Brokerage Company for an unprecedented 18th consecutive year. It’s an honor we’ve achieved by focusing on exceptional customer service and consistently putting our clients’ evolving real estate needs first.
Whether you measure our performance in terms of size, sales volume or number of transactions, the leadership of the companies and sales associates represented by ColdwellBankerHomes.com is driving innovation and delivering value to homebuyers and sellers. As a result, NRT’s growing presence includes more than 44,000 affiliated sales associates and 4,900 employees in 727 offices, all ready to serve you.
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"Client Feedback on Eric Hanas --
How fast did your agent respond to your questions: 5 out of 5
How well did your agent use technology: 5 out of 5
How helpful was the support staff: 5 out of 5
How good was the auxiliary services we recommended: 5 out of 5
How did the closing go: 5 out of 5
How close did we meet your expectations: 5 out of 5
How likely are you to recommend us: 5 out of 5
Services used: Sell
How did you find us: Referred by a Friend
Your most memorable moment: "when we found our dream home"
The moment you'd rather forget? "When we found out the first house we thought we wanted had major issues with water in the basement"
Eric was amazing! There were a lot of highs & lows throughout the process but he was patient, responsive and helpful through everything.
Will you Refer Eric:absolutely at a later time.