What happens next after the completion of the signing?
After you and the buyer have signed all the necessary documents, and all the buyer’s closing funds have been deposited in escrow, the escrow officer or closer will return the buyer signed loan documents to the lender for a final review if applicable. Following the review, which usually occurs within a few days, the lender is ready to fund the buyer’s loan and advises the escrow officer, so that the necessary work can be completed to record the document and “close” the escrow.
Please note, in some states, like Florida, these steps are done simultaneously.
What is the “close” of escrow?
It signifies the legal transfer of title of the property from the seller to the buyer and is the culmination of the transaction. Usually, the Deed and Deed of Trust, mortgage, are recorded within one working day of the closing. Recording completes the transaction and signifies the “close” of escrow. Once all the conditions of the escrow have been satisfied, the escrow officer advises you of the closing date and takes care of the technical and financial details, including paying off your existing loan(s).
When do I receive proceeds from the sale?
A final settlement statement and a check, or wire transfer, for the proceeds will be available to you the day the sale is completed, after documents are recorded and the escrow is closed. If you want your proceeds wired, escrow will ask you to complete a form with your bank and account information prior to signing.
What happens after the escrow closes?
After the loan has been finalized, the documents signed and recorded, and the financial settlement completed, there are still steps to be accomplished to complete the transaction. First, your existing loan(s) will be paid in full from the escrow account. Once the loan has been paid in full, a reconveyance or satisfaction document is recorded, removing the Deed of Trust, lien mortgage, from your now sold property. The original reconveyance or satisfaction will be mailed to you by the County Recorder’s office after recording. Please note, this may take several weeks, so do not be alarmed by the delay.
This article is part of the Home Seller Guide.