FREQUENTLY ASKED QUESTIONS

YOUR QUESTIONS, ANSWERED

WHY DO I NEED AN ESCROW?

An escrow will provide you with a guarantee that no funds or property will change hands until ALL of the terms and conditions have been followed. The escrow holder has the responsibility to watch over the funds and/or documents and then pay out the funds and/or transfer the title only when all requirements of the escrow have been completed.

CAN AN ESCROW OFFICER SOLVE
DISPUTES BETWEEN PARTIES?

California law states that an escrow officer does not have the power to referee dispute's between the parties. In the event of a dispute the parties can not resolve themselves, the escrow officer would stop processing the escrow until the parties come to an agreement or a court order Is received.

WHAT SHOULD BE CONSIDERED WHEN
CHOOSING AN ESCROW COMPANY?

Some important factors to consider would be the level of experience of the escrow officer, the financial strength and stability of the company, and the price charged for escrow services. It would also be wise to Inquire whether or not the escrow officer will be available throughout the escrow period.

Another wise choice would be to choose an independent escrow company

WHAT IS ANNUAL PERCENTAGE
RATE (AS LISTED ON CLOSING DISCLOSER)?

This is not the Note rate for which the borrower applied. The Annual Percentage Rate (APR) Is the cost of the loan in percentage then taking into account various loan charges and closing costs of which interest is only one such charge. Other charges used in calculation of the APR are Private Mortgage Insurance3 (PMI) or FHA Mortgage Insurance Premium (when applicable) and Prepaid Finance Charges (loan discount, origination fees, prepaid interest and other credit costs). The APR is calculated by spreading these charges over the life of the loan, which results in orate higher than the interest rate shown on your Mortgage/Deed of Trust Note. If interest were the only Finance Charge, then the interest rate and the APR would be the same.

WHAT HAPPENS IF THE
TRANSACTION CANCELS?

The parties involved must reach a mutual cancellation agreement In writing with live signatures, for the disposition of any funds and/or documents. Payment of any charges, including but not limited to costs incurred by the lender. HOA, title companies. and escrow holders, should be considered. If the parties cannot agree, a court order may be needed.