Escrow Tip: The Inspection Response Form
This tip can help alert your escrow team to assist you in getting appropriate repair bills addressed in the closing process in a timely manner.The inspection response form is often not submitted to escrow, which can be problematic and could delay your closing.The response form sometimes calls out repairs and details and the manner in which they will be paid. For example, "Seller and buyer agree to split the cost of the electrical work. The invoice shall be submitted to escrow for payment at closing”. If escrow does not have this form when they are preparing their HUD they will not know about the payment. The HUD settlement statement will not reflect the invoice amount or the debit to the buyer and seller.Often times the seller signs first, usually because they are leaving town and escrow is still waiting for loan documents to facilitate the buyer signing.If you make sure to get a copy of the inspection addendum to escrow as soon as possible it will expedite the closing. It will also insure that the information on the HUD is accurate and will avoid escrow having to request a second round of signatures.We all want to close on time with the least amount of stress. This is another tip to make sure we can make that happen.