You choose your agent…
You should also choose your escrow company.
Why? It’s really important to choose an agent to find you the perfect home or to market and sell your home in the best, quickest way possible, correct? Once that step is completed and you have found the perfect home or accepted the perfect offer for your home…what happens next? Escrow is opened.
Many people don’t understand just how important your escrow officer is to your transaction. Escrow receives the contract from the agent and we are off and running! Well, typing really, but we type really, really fast!
We request the deposit DIRECT from the buyer (more on that in a bit) because escrow handles ALL the money in your transaction. Yes, you read that right! All of those funds you are depositing and borrowing to purchase your dream home goes through escrow. As a seller, all of those funds we receive from the buyer are used to pay off existing mortgages, taxes, liens and then we cut the remaining profit check to you…or wire funds direct to your account. You need to be sure you are with a trusted company, such as Grossmont Escrow because we are handling a LOT of money…your money.
Now here is some important information to know about us:
Grossmont Escrow is HEAVILY regulated by the Department of Financial Protection and Innovation (DFPI). And we take these rules and regulations very seriously which is why we have been in business since 1952! Each and every year we have to hire and pay an independent CPA to come into our office and audit not only our finances but also how we handle transactions. Any changes* have to have an instruction to direct and approve that change. Once the extremely thorough audit is completed, the auditor then writes their review and sends it off to the DFPI for review. Grossmont Escrow deserves a pat on the back as we have an outstanding record.
Then, as if that audit each year isn’t enough, we get audited every 4 years by the Department of Financial Protection and Innovation on all of our finances and transaction handling as well. The DFPI sends one of their auditors down to sit in our office and request any file they choose and any financial records they choose. Again, Grossmont Escrow has an outstanding record with the DFPI audits.
STOP HERE AND READ: *WIRES* If you aren’t completely entertained by my 1st ever, fantastic blog post and you’re just scrolling on down, please, READ THIS PARAGRAPH:
We take the utmost care when handling your money. This is why it is SO IMPORTANT for you to be in constant contact with your escrow holder, whomever you choose to use. I said I’d get back to that Deposit in just a bit…and here we are. I can’t say it enough…know your escrow officer and your escrow company. Your escrow company should be contacting you direct to give you wire instructions. DO NOT TRUST EMAIL WIRE INSTRUCTIONS. If you get an email with wire instructions, be absolutely sure that you call your escrow officer direct to confirm these instructions. Do not use the phone number on the email those wire instructions came in.
I can’t express it enough…KNOW YOUR ESCROW OFFICER AND COMPANY.
I hope this post was informative. I want to keep them short as I could go on and on about the escrow process. Please, send me your questions or ideas for blog posts to JamieD@GrossmontEscrow.com. I want to know what questions you have about the escrow process. If your question or idea doesn’t pertain to escrow directly, I can guide you to where or whom you can get your answers from. Until next time…wire safely!
*Example of a change: Let’s say the seller decides to give a credit to the buyer because the home inspection revealed some repairs that need to be done. The seller and buyer need to instruct the escrow holder to draw an amendment reflecting this change. In most cases, your agent will do this. But if you do not have an agent (look for our ‘For Sale By Owner’ a.k.a. FSBO blog post coming soon!) you as the buyer and/or seller would let your escrow officer know and we will draw the instruction.