How long can a house be in escrow?

Kelly
Home Buyer
Bakersfield, CA

Answers (1)
Laurie Abshier
Mortgage Broker
or Lender

Bakersfield, CA
FIRST ANSWER

Hi Kelly - Great question and one worth asking! Since escrow is a "function" and not an actual "act" the period of time a home can be "in escrow" depends on many variables. Normally there is a specified time in a real estate contract that outlines expections for both buyer and seller. Often times escrow closes early (before the time limit specified in a contract) because all of the items necessary to culminate a transfer of title are completed. More often than we like, escrow can be delayed and closing times extended because many things can effect a timely closing. Buyers, Sellers, Title, Lenders and escrow officers all have specific job functions to do to bring a closing to fruition - items like demands for pay off of existing leins, repairs, unspecified title issues such as probates and buyers obtaining financing are some of the larger issues that are faced in a escrow period. All parties are responsible to work together to insure a timely closing but things come up where a delay cannot be avoided. If escrow does not or is not able to close by the specified date on the contract - parties can opt to cancel the closing because the objective of a timely closed cannot be reached. I have actualy had escrows on sales open for over 1 year and I am sure there are other "interesting" stories out there. If your escrow has gone past the closing date specified on your contract the best advice is to take the advice of the professionals you are working with and either extend the agreement in writing or cancel it in writing - whatever you do do it in writing.

Web Reference: http://gemmortgage.com
Thu Oct 1 2009, 11:14

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