Today I am working on two escrows…
One is in Alhambra…
We have working on
this for seven weeks now. The escrow
process is slow. Everyone is afraid of
making mistakes. The appraisal process
took a week to long. The lender (major
bank) kept find reasons to delay. We
finally had the loan approved. Then we
found out the Water Heater needed a ventilation extension above the roof
line. The appraiser said it was
necessary before she would approve the final inspection. Curiously no one (including the appraiser
service) could cite the actual regulation.
The total expense is $125; and the work is being performed today. This little obstacle cost us another several
days.
The second
escrow is a short-sale in NE Pasadena…
You may have heard that short sales are difficult. What makes them most difficult is if they
have two loans. The first loan, usually
80% of the total price, is easier to deal with.
The second loan is usually between 5%-20% of the total selling price. The second lender always feels like the uninvited
guest. They are many shortchanged. They will stop the sale if they feel
cheated.
If you are buying a short sale and there are two loans, be prepared to
pay up to 15% of the second loan amount in cash. This cash payment will be extra to the
regular down-payment.
In our case, my client is putting 20% down. Plus he will have to spend another 5% of the purchase
price to pay-off the 2nd loan.
