A relationship between an escrow company and a mortgage lender has pros and cons. There are more benefits in using an independent escrow company.
- Direct relationships between escrow companies that are clients of lenders can speed and smooth the process.
- An independent escrow company, however, eliminates any potential conflict of interest claims that might arise from delayed, postponed or canceled mortgage closings.
- Top independent escrow companies, such as Eastland Escrows, owe no allegiance or corporate "favors" to lenders; they work for you to make your real estate purchase a stress-free experience.
- A relationship between a real estate agent and an escrow company may generate one or the other "cutting corners" that cause long-term problems with home title transfers that are incomplete.
- Relationships involving common ownership or incentive fees between escrow companies and lenders or real estate agents must be disclosed to clients, generating questions that may be difficult or uncomfortable to answer.
- Laws exist that prohibit escrow companies from paying fees to referral sources. Home purchase clients should not become involved with relationships that may encounter federal or state regulator problems.
Always ask about any disclosed or potential relationships between a recommended escrow company and your agent or lender. To protect yourself, contact Eastland Escrows. You’ll have the comfort of dealing with experienced professionals without cumbersome or problematic relationships.