REO Escrow

REO Escrow

Our Vast Knowledge Helps Make REO Escrow Easier

Real Estate Owned (REO) is a property owned by a lender (usually a bank), and is labeled as an REO after an unsuccessful sale at a foreclosure auction. Typically, the foreclosing beneficiary sets the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders, the beneficiary will legally repossess the property. Once it is repossessed, the property is listed on the books as REO.

REO has strict deadlines, tight requirements, and incurs special challenges.

A Step-by-Step Guide to the REO Escrow Process:

  • Upon agreement to sale, Asset Manager and/or Listing Agent provides completely executed Purchase Agreement and any Addendums/Counter Offers (including copy of signed Residential Listing Agreement from Listing Agent), as well as contact information for all parties to Escrow Holder.
    • Escrow Holder contacts Selling Agent to obtain Buyer’s Deposit and verify contact information (Purchase Agreement usually requires that said deposit be made within 3 days of acceptance).
      • Escrow Holder requests new Lender(s) information and/or Pre-Qualification letter from Selling Agent.
        • Escrow Holder opens title order, requesting Preliminary Report and CC&R’S from Title Company.
          • Escrow Holder prepares Escrow Instructions and supporting documents, distributing same to all parties.
            • Upon receipt of Preliminary Report, Escrow Holder orders all applicable documents, including HOA disclosures, to ensure that clear title can be granted at Close of Escrow.
              • Upon receipt, Escrow Holder distributes Preliminary Report, CC&R’s and other applicable disclosures (including Termite Report) for approval.
                • Escrow Holder contacts new Lender(s) for status of Loan(s), including receipt of Credit Report, Appraisal and other required documentation. If loan(s) is/are approved, Escrow Holder verifies when loan documents will be ordered.
                  • Escrow Holder contacts applicable parties if any documents are still outstanding (i.e.; Receipts for Reports, Buyer’s Insurance, Statement of Information, etc.).
                    • If the Seller has authorized any repairs, Escrow Holder verifies if they have been completed, and how they will be paid (either outside of escrow or through escrow).
                      • Escrow Holder confirms receipt of Home Protection Plan or requests that the applicable Realtor order same if it has yet to be received.
                        • Loan Documents are received by Escrow Holder and prepared for prompt closing.
                          • Escrow Holder forwards Seller’s Estimated Closing Statement to Asset Manager for review and approval.
                            • Escrow Holder makes appointment with Buyer to sign Loan Documents, advising Buyer of the amount of money to bring to Escrow.
                              • After Loan Documents have been signed, Escrow Holder packages them for return to the new Lender(s).
                                • Escrow Holder coordinates with new Lender(s) to fund Buyer’s loan(s), and verifies approval of Seller’s Estimated Closing Statement with Asset Manager.
                                  • Upon verification of funding and Asset Manager approval, Escrow Holder contacts Title Company and coordinates the recording of documents to change title.
                                    • Documents record, Buyer takes title/ownership to property.
                                      • Escrow Holder balances and disburses file, ensuring that all parties are properly compensated.
                                      reo escrow

                                      Based in Chino CA, Inland Empire Escrow offers the lowest escrow fees in the industry for residential and commercial clients. We are considered by many to be at the top of the best escrow companies in Rancho Cucamonga, Upland, Riverside, San Bernardino and all surrounding areas.  We provide specialized service for mobile home, short sale, REO, Bulk / Business Sale, 1031 Exchange, and Agricultural escrow.

                                      Get in touch with us today, so we can start providing you with excellent service!

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