4 Signs That an Escrow Company Should Not Be Trusted

4 Signs That an Escrow Company Should Not Be Trusted

4 Signs That an Escrow Company Should Not Be TrustedAn escrow company should be an impartial third party that provides reliable escrow services without any issues. Sadly, not every company offers this, with various escrow agents and businesses using shady practices and even committing outright fraud.

Given the vast sums of money involved in escrow, you want to choose a company that is reliable and trustworthy, otherwise you could see yourself with added stress during a real estate transaction or even out of pocket.

Here are 4 signs that an escrow company should not be trusted:

1. The Price is Too Good to be True
This is a big one for escrow companies, with many untrustworthy businesses offering prices that seemingly are too good to be true. The truth is these deals are just that, with some escrow companies offering low-price services only to add on various hidden fees, meaning the deal isn’t as good as you think.

Also, when paying low fees you may find the company doesn’t offer the same extensive services as those charging the average amount. In fact, there is a minimum threshold that most companies can charge, so if you notice one company is much cheaper than the others it’s a good idea to stay clear.

2. Poor Communication
Communication is vital for any escrow agent, as their entire role is to act as an intermediary between the buyer and seller. You want someone that will help make the process as straight-forward as possible, and that means relaying a lot of info between both parties, so if you feel their communication is lacking it may be best to look elsewhere.

If you can’t always trust an agent to be available and give you updates on the status of escrow, then the entire process is going to take longer to complete. This means more stress and more money out your pocket, which is the last thing anyone wants!

3. Asking to Pay an Individual Rather Than a Company
This is a common tactic used by fraudulent escrow companies and should be an immediate red flag. Rather than asking you to wire the money from your bank to the escrow company, they ask you to send it to an individual, who then takes the money for themselves leaving you out of pocket.

No legitimate escrow company will ask you to transfer the money to a person – it will always be a corporation. They should include an account and routing number, so if you get any of the above stay well clear.

4. Pressuring You into Using the Service
While it’s understandable that an escrow company wants your business, if they are being too forceful about using their service it may be best to avoid them. This could either be a fraudulent website that wants to take your money or an escrow company that uses shady tactics to coerce customers to work with them.

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.