Lake Havasu City Foreclosures: Escrow Functions – Foreclosure Homes Listings

Whether you are a buyer or a seller, it is in your best interest to be assured that all legal terms and conditions concerning the Lake Havasu City Foreclosure property have been met before the money changes hands.

Technically defined, an Escrow is a deal/transaction wherein one entity, whether an individual or bank, is engaged in the sale/transfer/lease of a property, with another entity, and hands over legal documents, and/or other valuable items to an unbiased third entity. The third party entity is referred to as an escrow holder or agent. The Escrow Agent is responsible for holding in its safe custody, all matters and material related to any such business until the time of disbursement of the final transaction or event. In other words, the escrow agent is entrusted with impartial processing of the instructions as made available by the principal parties involved.

It is required of the principal parties to provide the Escrow Agent with the necessary information and documentation, including tax and loan documents, insurance poly papers, terms or sale/purchase and services required to be financed by the escrow during the process of the transaction, to enable him to close the deal.

Role of an Escrow Agent

Escrow does:

• Serve as a the impartial “stakeholder”
• Serve as a communication channel between the buyer and seller
• Prepare escrow instructions related to and based on the deal in question
• Complies with legal requirements – deeds, documents, insurance, property title
• Receive purchase funds from the buyer and disburse funds to seller
• Prorate interest, taxes, insurance and rents
• Prepare final purchase and sale related statements for the parties involved

Escrow does not:

• Negotiate transaction
• Offer legal advice
• Offer advice on investment

For transactions related to Lake Havasu City Foreclosures, one must hire the services of a local escrow holders/agent who is abreast with the legal systems followed within state in question.