What Do I Need to Know About Escrow?

When you open an escrow account in Albuquerque, New Mexico you are securing your interest in the investment—usually real estate. An escrow account with Sunwest Escrow can provide peace of mind through securing documents on site and a trusted third-party payment history.

Consider this. You are a buyer of a new home. You’re using your lifesavings as the down payment on a home you love, using owner financing. You’ve just met the buyer through the process of buying the home, but he says he’s done this process a million times and there is nothing to be worried about. You and the seller decide to forego using an escrow company because he says their unnecessary.

So, who is going to hold the deeds? How do you know the deed will transfer ownership after all your payments have been made? How do you know who paid what? And when?

Consider the other side. You’re a seller. You’ve used owner financing to sell property a thousand times. You’re building your portfolio so you can retire soon. You like to travel and you’re very rarely in town.

Again, who is going to hold the deeds? Where are you going to accept payments? Who is keeping track? How do you get that money into your bank account so you can spend it? What if you decide to sell the contract? Do you have a trusted payment history to show potential buyers?

People travel. People change their mind. People get busy. People forget. People disagree. An escrow account with Sunwest Escrow helps alleviate these problems. Sunwest acts as a trusted third-party, or middle-man to the transaction by securely holding documents, receiving payments, holding funds in impounds for taxes and insurance, remitting funds to the buyer, and keeping a detailed history of each transaction.

Real estate is a large investment with many potential pitfalls. But many, if not all, problems can be solved with competent help. You should find competent advice from real estate brokers, title companies, attorneys, and tax professionals. And, by using an escrow account in Albuquerque, New Mexico you are adding an extra protective layer around the purchase, or sale of your real estate.