The Top 5 Obstacles in Getting Escrow to Close on Time

The Top 5 Obstacles in Getting Escrow to Close on Time

The Top 5 Obstacles in Getting Escrow to Close on TimeWhether you are selling or buying a home, it is important to know that the escrow process can be delayed. There are several obstacles that can prevent an escrow from getting closed on time. This happens because a successful real estate transaction requires the involvement of many parties. Knowing about these obstacles and how to prevent them can help you make sure that everything goes as planned.

Here are the top 5 obstacles in getting escrow to close on time:

Unrealistic Contract Dates

Unrealistic contract dates are the most common obstacles that cause a real estate closing to delay. Typically, it takes about 50-60 days for an escrow closing to happen after the buyer has accepted the offer. The timeline can vary depending on the contingencies in the purchase offer, the type of financing a buyer is using to buy the home, as well as many other factors. The only way to prevent this is to hire a reliable real estate agent to minimize the chances of closing delay.

Real Estate Appraisal Issues

Escrow can also be delayed due to the issues with a bank appraisal. The reasons behind bank appraisal issues delaying an escrow closing vary e.g. the seller and buyer cannot come to new terms, the appraiser requires certain repairs, etc. Whether you are selling or buying a home, it is highly recommended that you ask your real estate agent to follow up to ensure that the appraisal has been completed. This will help prevent the delay in escrow closing.

Title Related Issues

During the escrow process, tile related issues occur more frequently than you may think. Most of these issues can be easily solved, however solving them takes a lot of time which prevents the escrow from closing on time. To minimize the risk of your real estate escrow getting delayed, it is recommended that you ask your real estate agent to perform a title search as soon as the purchase offer is received.

Instrument Survey Related Issues

If there is a discrepancy in the real estate instrument survey, then it is likely that the escrow closing will be delayed. In real estate, boundary line disputes or encroachments are usually the primary discrepancies in instrument surveys. Such issues are usually solved by having the involved parties sign an affidavit that indicates the understanding and consent of the encroachment or dispute.

The Buyers Mortgage is Rejected

Escrow closing can also be delayed if the buyer’s mortgage is rejected. The delay in escrow getting closed could be as short as 60 days if a new buyer is found or as long as many years if you cannot secure a new buyer.

Having an escrow closing delayed can be very frustrating. However, you can minimize the chances of it happening by being aware of the reasons listed above. Apart from this, knowing what your real estate agent and other parties involved in the transaction should be doing can also help.

Inland Empire Escrow  provides escrow services for a diverse variety of real estate transactions.  With offices in Chino CA and San Bernardino CA, we quickly and professionally service all the surrounding cities such as Chino Hills, Ontario, Rancho Cucamonga, Upland, Riverside, Redlands, Colton, Grand Terrace, Yucaipa, and more.  To hear more about our escrow services for residential, mobile home, short sale, REO, bulk/business sale, 1031 Exchange, or agricultural escrow, contact us today at (800) 917-9387.