3 Reasons to Choose an Escrow Company in Albuquerque Why would you need an escrow company?
Imagine that you are a buyer of a home under a real estate contract and you are not using an escrow company. You have not missed a single payment, until one day your seller passes away and his estate is passed on to his children. The property that you have been making payments toward for years has been passed on to them. And suppose the seller wasn’t keeping records of the amounts you paid to him. It’s as if you hadn’t sent any payments to him! How can you prove you’ve been paying? Is it possible to get the deed without starting over?
Suppose you are from another side, you’re from the seller’s family of the above situation. You want to liquidate all the assets of your father and move on. But your father wasn’t using an escrow company, he didn’t keep any records, and accepted only cash for all the payment. How will you ever settle his estate with so many loose ends? Do you want to spend your life in court figuring it out?
Escrow services are essential when two parties are exchanging items of value (such as real estate). The escrow company acts as a third party to create trust, keep a transaction history, and hold documentation (such as the deed) until the conditions of the contract are fulfilled. Without an escrow company, you risk the possibilities of confusion, neglect, and fraud.
We Offer a Third-Party Transaction History The payment history record from a third party would have made the difference in the above scenario. Complete transaction history and documentation for each payment would end any arguments that arise, and the buyer can continue payments as usual.
We Hold Important Documents The escrow company holds major documents which are only released after completing the payments or terms agreed upon. In the scenario above, if an escrow company were used, the documents would have remained at the escrow company and payments would have continued as usual, until one of two things occur: 1. When the conditions of the contract are completed, the documents are released to the buyer for recording. 2. If the conditions of the contract are not completed, then the contract documents are held by the escrow company.
We have just given an example of how buying real estate without an escrow company can be catastrophic. We hear of these stories often when it is too late for help. You can call us today for a free book on Real Estate Contracts and you can trust Sunwest for escrow services in Albuquerque.
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