Subject To And The Escrow?
I purchased a house for resale Subject To the exisiting Mortgage. It is nearing time to sell and I started thinking about the money in escrow. I reinstated the loan and made everything current, I am sure there will be money left in the escrow fund at closing. What are my options and how do I get the money rather than the former home owner who still has his name on the note?
Thanks!
jllaco,
Are you referring to the existing impound account with the current lender?
John $Cash$ Locke
yes, the money that has been paid towards insurance and taxes, that is disbursed annually.
In the past when I have sold homes,(that were in my name) I would get an escrow refund after the sale. It varied froma few hundred dollars to a thousand.
jllaco,
If you are selling the house traditionally then this money would be distributed to you by the escrow company at closing, as you are the owner of record.
John $Cash$ Locke
maybe things are different in nevada, but in georgia when a loan is paid off the escrow is typically mailed back to the seller (or the persons name who is on the mtg) 4-6 weeks after the payoff is received from the attny.
That's how it was done in Maine also. The property I am concerned about now is in SC and I am assuming it willbe the same process as GA, a refund check from the mortgage company a month or so after the close.
So, any ideas on how to capture that cash?
jllaco
In a Subject To deal the address is changed at the mortgage company, this is the address the lender has so the check would 'not go' to the seller, it would come to the address you designated.
I am assuming a few things here, but if you have a Power of Attorney then you could deposit this check in your account when it comes to the "address you designated".
Now maybe in Georgia it doesn't work this way but in all of the other 49 states it does. Why would anyone think it would go to the seller when the mortgage company doesn't even have the address of your seller.
John $Cash$ Locke
I guess that is the info I was looking for, I'll provide a change of address with the mortgage comapny(keep the previous owners name in c/o me) then get the previous owner to sign a POA. Simple enough, that is why I posted...to learn from the experienced. Thanks John!