Mar 13 2009
Things that can cause escrow to fall through and how to avoid them
Escrow is a service that is designed to protect both parties in a transaction. Funding is placed with an impartial party and held ready for the actual contract completion.
Unfortunately, escrow can fall through for a variety of reasons. The main reason escrow will fail is due to the purchaser not being able to acquire the required funding. Usually this means that their pre-approved mortgage loan has actually been turned down at the last stage, usually because of undisclosed financial situations resulting in their inability to purchase the property. In years past… many buyers were able to push through even with serious financial failings. In fact, as you likely already know… many buyers were able to secure funding without even proving their financial status. However, times have changed and lenders rules are much more stringent.
The second reason that escrow may fall through is because of property inspections. The home inspection may provide a negative indication such as termite infestation, termite damage, or mold. In such cases escrow does not always fall through but it can if both parties are unable to reach an agreement on the final purchase price.
To minimize the risk of your escrow transactions becoming a problem, you should employ an Orange County Realtor from Harbor Realty to ensure that all your i’s are dotted and t’s are crossed . Something as simple as a typing error on a title deed can cause escrow to fall through, employing somebody to take care of these minute details is a good idea.