Escrow & title company question about the close process

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Submitted by djrobsd on January 22, 2008 - 12:18pm

I'm a little bit confused and I was wondering if anyone here could clarify the confusion.

My escrow & title company received the funds from the buyer on Thursday, received my (sellers) funds at 9AM on Friday, received funds from the buyer's lender at 1pm on Friday, recorded deed at 3pm...

I handed over keys on Friday night, to the buyer...

But yet, my lenders have not been paid this morning (Tuesday), and the escrow company is telling me they are just barely sending the funds out. Granted monday was a bank holiday, but I don't get why they could not have sent out funds to my lenders on Friday when they received all the funds?

Seems to me like someone is making money off of this scheme, OR someone at the title company is VERY lazy and wanted to go drink beer on Friday rather then getting the payouts to my lender.

Either way, I am now stuck holding the bag for an extra $300+ in interest on my loans, and of course 3 or 4 extra days of property taxes and HOA dues, which makes absolutely no sense to me. I'm very happy my home sold, but I would also like to know that I'm not being taken for a ride by the title or the escrow company for either their greed or their stupidity.

Any insight?

Thanks!

‹ Could be some more crow for me Caveman Cramer ›
Unless escrow did your
Submitted by Russell on January 22, 2008 - 2:30pm.

Unless escrow did your proration calculations from an earlier date you should not be paying any additional on those items you mentioned.Was an earlier closing scheduled and then postponed?

As far a paying off your loans goes..all I can think of is that your lender(servicer) is is on the east coast and funds have to be acknowleged by a representative to complete the transaction. Perhaps that representative had already gone home. Maybe your escrow just dropped the ball. You might want to clarify and demand they pay any additional interest due, if that is the case.

There is definitely no grand profit scheme by your escrow company.

This is standard procedure.
Submitted by carefullyobserving on January 22, 2008 - 9:17pm.

This is standard procedure. If the buyer's funds were wired into escrow on Friday at 1pm, the deed was immediately released for recording. Escrow cannot reconcile the transaction or payoff your lenders until recording. If it recorded Friday afternoon at 3pm, it was too late to wire out money to your lender. Wire cutoff is 1:30pm PT or 4:30pm ET. So the next available day that they would have been able to wire would have been this morning. There is almost always a one day lag between recording and the wiring of payoff funds. The only time that this doesn't happen is if the buyer's money is sitting in the escrow account first thing that morning. I would say that at least 95% of the time, there is the one day (business day) lag.