23 Sep Interested in Closing Escrow in as Soon as a Week? Consider an All Cash Escrow.
In Today’s tight-lending market, individuals looking to invest have the opportunity to capitalize on some great deals and benefits when making an “all cash offer” on a property. An “all cash offer” is an offer that does not require a third party lender. Cash offers also make for one of the smoothest escrow processes possible.
So how does a cash offer affect escrow?
As mentioned in a previous blog posting (Life of an Escrow – Buyer’s Perspective) there are three stages of the escrow process: the opening, the processing, and the closing. The opening and processing stages of an “all cash” escrow are no different than those of a normal escrow; however, the closing process differs slightly since there is no lender involved. During the closing process, once the escrow officer has received the buyer’s and seller’s signed initial paperwork and has received all demands, bills and/or reports required under the contract, the escrow officer will prepare the closing amendments and any additional documents necessary for signatures. In addition, the estimated closing statements are prepared for signatures and the buyer is made aware of the funds needed to close the transaction. Depending on how quickly the signatures and appropriate paperwork can be collected, the escrow could potentially close in as quickly as a week!
If a buyer is considering investing in a property, they should speak with their agent to learn how paying cash can be beneficial to both parties. These benefits might include:
- A seller possibly accepting the “all cash offer” rather quickly, even if it’s not the highest offer, or one of many
- A seller finding an “all cash offer” more attractive because a buyer who is purchasing “all cash” is generally highly motivated to close escrow quickly
- No appraisal inspection/appraisal review issues or delays
- No loan or underwriting issues or delays
- Parties having the option to waive certain reports or inspections that they are not interested in paying for, that a lender may require as part of the loan process
- The buyer paying less money in closing costs
Upon the escrow officer’s receipt of all conditions of the purchase contract being met, the buyer’s final wired closing funds, and the final signed paperwork from the buyer and seller, the escrow is ready to close. Escrow then coordinates the recording with the Title Company. (Though all counties have different guidelines for recording times; most recordings take place the following business day.) The real estate transaction is considered closed when the Grant Deed is stamped and recorded in the County Recorder’s Office. Because there is no lender involved in an “all cash escrow”, the escrow tends to close faster and is considered a much smoother process.
If you have any furhter questions about all cash escrows, feel free to contact us.