Yes
When you are in escrow, you are still responsible for making your mortgage payments until the escrow process is complete and ownership of the property is transferred to the new owner.
Escrow is a period of time during a real estate transaction where the buyer and seller have reached an agreement, and a neutral third party, known as the escrow company, holds onto the funds and important documents until all conditions of the transaction have been met.
1. What is escrow?
Escrow is a process where a neutral third party holds onto funds and important documents during a real estate transaction until all conditions have been met.
2. How long does escrow typically last?
Escrow periods can vary, but they usually last between 30 to 60 days.
3. What happens during the escrow process?
During escrow, the buyer typically has inspections done, secures financing, and ensures all necessary paperwork is in order.
4. Who pays for escrow fees?
Escrow fees are typically split between the buyer and seller, although this can be negotiated as part of the purchase agreement.
5. Can you cancel escrow?
Escrow can be canceled under certain circumstances, but it is important to carefully review the terms of the purchase agreement and consult with a real estate professional or attorney.
6. Do you have to pay property taxes while in escrow?
Yes, property taxes are typically paid through escrow, so it is important to budget for those expenses during the escrow period.
7. What happens if the appraisal comes in lower than expected during escrow?
If the appraisal comes in lower than expected, it can affect the financing of the mortgage, and the buyer may need to renegotiate with the seller or come up with additional funds.
8. Can the buyer walk away from the transaction during escrow?
Buyers can usually walk away from the transaction during escrow, but they may forfeit their earnest money deposit unless there are certain contingencies in place.
9. Can the seller back out of the sale during escrow?
Sellers can sometimes back out of a sale during escrow, but they may be required to pay a penalty or return the buyer’s earnest money deposit.
10. How does escrow protect both parties in a real estate transaction?
Escrow protects both parties by ensuring that funds and important documents are held by a neutral third party until all conditions of the transaction have been met.
11. What happens if repairs are needed on the property during escrow?
If repairs are needed on the property during escrow, the buyer and seller may need to negotiate who is responsible for making those repairs before the transaction can proceed.
12. Can additional fees be added to escrow during the process?
Additional fees can sometimes be added to escrow if unexpected costs arise during the transaction, but it is important for both parties to carefully review and agree to any changes in writing.