Back to Results

Tools

Partner Tools


Escrow- how do they work?

Profile picture for profitfromprices
close Profile picture for profitfromprices

profitfromprices

Contributions: 19

View full profile

My lender- GMAC- for refinance was supposed to fund on Thursday. It did not. It funded on Friday. Escrow decided not to record same day (county is Ventura). They said they would record on Monday.
I am curious to know:
* I had instructed my broker to get Escrow pay my former lender today itself (Friday) after they got funding from the new lender so I do not have to pay interest to both lenders over the weekend (2 days is like 200 dollars extra). Do you think my broker and escrow could have done this?
* Does Escrow company benefit from holding money over the weekend?
* Does Ventura county in California not accept same day recording?

Any advice would be greatly appreciated.
Thanks in advance.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

November 06 - Simi Valley
RSS

Answers (7)

Best Answer
Profile picture for Bentley Advisors
close Profile picture for Bentley Advisors

Danny Kim, "Bentley Advisors"

Mortgage Lender

Lender rating

4.8/5.0

View ratings and reviews

Contributions: 209
Zillow All-Star

Since September 2009

View full profile

I remember your ordeal in an earlier post. Sorry you weren't able to have the broker or lender eat the lock extension as it was the right thing to do on their part. They were clearly at fault for not understanding that the HELOC agreement was essentially the "Note" they were looking for all along.

As far as your funding issue, I believe it's logistically difficult to fund, record, disburse funds all in the same day regardless of whether the county allows same day recording. Even if old lender is wired payoff funds same day, it's likely initiated later in the day after recording confirmation. Then, account for any time zone differences in lender recipient's location, transit time for wire delivery, lender reconciliation time, etc. and it's not likely payoff will even post same day. Even so, there is a document you signed in the final loan docs called the "CA Per Diem Interest Disclosure" where you must give express authorization for escrow to disburse on a Monday. If, instead, you expressly indicated that you wished to disburse following only a business day, then you might use the document as leverage to get reimbursed for the added interest. While you're at it, I'd ask the broker/lender to reimburse or split the lock extension fee. Did you already ask? ...and if so, what was the response?
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

November 07
Profile picture for CA UMB
close Profile picture for CA UMB

Rudi Hofmann, "CA UMB"

Contributions: 2973
Zillow All-Star

Since January 2009

View full profile

PFP,

I received your email. I did some updates earlier today. Now, my Outlook can receive but cannot send. Tech support on Monday unless I can make it happen.

I think everyone did their best. Escrow didn't receive the wire in time. Usually, 10 am is the cut off for recording requests. 4 pm is usually the Recording Office cut-off time for recordings.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

November 07
Profile picture for profitfromprices
close Profile picture for profitfromprices

profitfromprices

Contributions: 19

View full profile

Thanks Rudi for your comments on my question.
Here is some further info:
1) The Escrow confirmed around 11:30am Friday  that they had received funds from the lender.
3) Ventura country records till 4pm on Fridays.
4) At 12:40pm, broker told me that Escrow will record on Monday. I kept asking my broker to get it done today but it didn't happen.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

November 07
Profile picture for CA UMB
close Profile picture for CA UMB

Rudi Hofmann, "CA UMB"

Contributions: 2973
Zillow All-Star

Since January 2009

View full profile

PFP,

I feel you are over reacting to this situation. I don't think anyone is intentionally delaying the process so you have to pay an extra $200.00 in interest to your current lender.

If this happened as you "instructed" you would have had to pay two extra days of prepaid interest on your new loan. So, is it really $200.00?

At this point your broker has no control. That may also be true of your Escrow company.

Escrow wants this to fund as fast as you do. No one gets paid until your loan is recorded. Not your current lender, your new lender, the broker, your escrow, title and other third party suppliers. And, if this was cash-out you wouldn't either.

To come to your assumption you would need to know the following:

1. What time (exact hour) on Friday did the lender's funding department send the Funding Wire to Escrow?

2. How busy was Escrow at that time? (Do you think you were their only funding that day?)

3. What is the latest hour to request the recording with Ventura County Recorders Office? (Did escrow have that capability?)

4. How busy was the Recorders Office on Friday if they received the request within the allotted hours? (Would they have the time to record that day?)

Unfortunately, you had a weekend between business days. Getting a loan in today's market place is an accomplishment. Be thankful for all the help you received that assisted you to get to this point!
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

November 07
Profile picture for Gregorio Denny
close Profile picture for Gregorio Denny

Gregorio Denny, "Gregorio Denny"

Mortgage Lender

Lender rating

5.0/5.0

View ratings and reviews

Contributions: 3685
Zillow All-Star

Since January 2009

View full profile

Did you go to Ditech? 
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

November 06
Profile picture for profitfromprices
close Profile picture for profitfromprices

profitfromprices

Contributions: 19

View full profile

Thank you Gregorio Danny.
I am having weird experiences during refinancing. During lock, the lender and the broker wasted two weeks. Kept asking me to get Note from my Heloc provider and Heloc provider kept saying their Credit Agreement was the note! Then towards the last days of lock expiry, lender accepted that the Credit Agreement I had given them two weeks back was the note! Then they told me I needed to extend the lock by 5 days to facilitate Close and asked me to pay $904! I had no choice so I agreed to pay that last minute ransom.
Now they were supposed to fund Thursday but funded on Friday and Escrow decided to record on Monday!
Do you know any government agencies I can take these guys to?
Thanks
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

November 06
Profile picture for Gregorio Denny
close Profile picture for Gregorio Denny

Gregorio Denny, "Gregorio Denny"

Mortgage Lender

Lender rating

5.0/5.0

View ratings and reviews

Contributions: 3685
Zillow All-Star

Since January 2009

View full profile

You could have gotten a same day recording in Ventura County. I had a loan fund and record today, so assuming it funded early enough (and I do assume that since most funding cutoff times are early), they could have recorded this. If they were not going to record today they should have put off funding until Monday.

Did you have any issues with your lock expiring?
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

November 06
 

Have a question? Ask it here.

What's this?
Close

By starting a discussion, you can expect more of an interactive, back-and-forth experience where the conversation can go in many different directions.

Or start a discussion

 
Top Lenders
Ratings
Subscribe via RSS
  1. Profile picture for Gregorio Denny Gregorio Denny

    5.0/5.0

    56 reviews
  2. Profile picture for Mike Politzer mike politzer

    4.9/5.0

    40 reviews
  3. Profile picture for LoanKrunch CPA David Chin, CPA

    4.9/5.0

    37 reviews
  4. Profile picture for Allen Mische Allen Mische

    4.8/5.0

    48 reviews
  5. Profile picture for WhitmanMet.com Kat Whitman

    4.7/5.0

    65 reviews

See more Simi Valley lenders

Related Questions
Profile picture for Rudi Hofmann
Question Escrow- how do they work?
  • Latest answer by Rudi Hofmann
  • November 07
Profile picture for Justin Sheftell
Question Refinancing- Note vs Credit Line Agreement.
  • Latest answer by Justin Sheftell
  • October 30
Profile picture for Ritu Desai
Question Refinance Options
  • Latest answer by Ritu Desai
  • April 01
Need a Mortgage?

Zillow Mortgage Marketplace

  • Competitive rates
  • Accurate, custom quotes
  • Thousands of lenders

... and, it's free and anonymous

Get instant mortgage quotes
Estimated purchase price Current mortgage balance Desired loan amount
98104

Learn about Zillow Mortgage Marketplace

Zillow Poll:
Suggested by Lew Corcoran
Should bankruptcy judges be allowed to change the terms of a mortgage?
Next poll
Suggest a poll
Be A Good Neighbor

Zillow® Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy

© 2006-2008 Zillow.com, All Rights Reserved

pageName