Escrow 101 Flashcards
Escrow Instructions
simply describe escrow’s role and responsibility during the transaction to the
borrower.
Escrow Amendment
These are any changes made to the original escrow instructions
Closing Statement
the document that brings together all of escrow, title and the lender’s
fees and puts them on one document for the borrower to see and approve.
Insurance Information Sheet
This is where the borrower lets escrow know what insurance company that they use. Insurance
company name, policy # and the insurance agent’s name and phone number
Disbursement of Proceeds
If the borrower is due refund from closing this tell escrow how they would like to receive it. This
is the form that tells escrow whether they want to pick up the check at escrow, have it
mailed/FedEx, or wire.
If this is not filled out then escrow will not know how give the money to the borrower.
Borrower Information Sheet
this is form that gives escrow all the information they need to open up
escrow. The current payoff, whom they owe and how much, any private liens, HOA info and/or
insurance information.
Payoff Demand
shows what the borrower
owes their current lender. Escrow is responsible for ordering the demand from the current
lender and then present it to the borrower for the approval to payoff whatever the payoff states
that they owe.
Statement of Information
This is also known as the S.I. The S.I. is essentially an application for title insurance.
Grant Deed or Quitclaim Deed
changes the way property title is held. Whether that be from a
seller to a buyer. Or somebody changing the way they currently hold title. For instance if
someone got married and was adding their spouse to the property or if someone is putting their
house in a trust.
Trust Certification
a document that proves that a borrower has an established valid trust, in
lieu of actually providing the whole entire trust (which at times could exceed 100 pages).
P.C.O.R
This helps the county understand
what is going on with the grant deed or quitclaim deed. For example, if there is a transfer
between spouses because of a removal from a trust, this would be filled out to help define
that. this only gets filled out if there is a grant deed or quitclaim deed.
Subordination Agreement
tells everyone that the loans in the subordinate position stay in the same lien position even
though the lien above it has been paid off.
What this allows is a new lien holder to go in the empty 1st position. As an example, if someone
refinances a first but there is also a second on the property, the new lender will only approve the
loan if their loan will goes in the first lien position.
Power of Attorney
This is when someone has given
another person authority to sign on their behalf.
Payoff (purchase)
It shows how much
someone owes on a current mortgage.
