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Patty, Home Seller in Culver City, CA

how much is per diem cost to extend escrow?

Asked by Patty, Culver City, CA Tue Apr 13, 2010

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7
It depends on your interest rate. Your loan officer should be able to give you this figure, but there's no way of knowing without the figures.


-Rob
BPO/REO blog:
http://www.bporeo.org
1 vote Thank Flag Link Tue Apr 13, 2010
Per Diem cost to extend escrow varies for each sale; there is no set amount. Every per diem varies for each transaction due to all transactions being different, for instance, how many days (time frame), what is the monthly payment, what is the interest rate, if the interest rate needs to be extended that would be included as a cost and other fees can incur due to the different nature, there are many different numeric factors that are calculated that create the per diem cost for every different case. So asking your escrow officer or lender where they are getting the cost from would help you to understand were the fees are coming from. If any questions please call Trina @ 323-572-8500.
1 vote Thank Flag Link Tue Apr 13, 2010
I disagree with the fellows below. THERE IS NO SET COST ON PER DIEM. It is based on the price of the property and the actual cost of extending the escrow for the other party. Generally, per diem is calculated as the real cost of the party to offer an extension. In the case of the seller, it will include Principal on existing liens, Interest on existing liens, Taxes and Insurance (PITI). This may include any swing loan necessary to extend the escrow date, or any penalty he must pay on the property he is purchasing. In the case of the buyer, it may be rent or PITI on his current property,plus any penalty he must pay to the person purchasing his property. It may also include any necessary monies needed to extend the buyer's rate lock. Your escrow officer can calculate the number for you.
Remember, it's all negotiable.
Best,
Deborah Bremner
REALTOR, 00588885
Certified Short Sale Professional
Certified Home Retention Specialist
(D) 818.564.6591
TheBremnerGroup@gmail.com
Blogging at: http://TheBremnerGroup.com/blog
1 vote Thank Flag Link Tue Apr 13, 2010
Hi Patty,

If you are dealing with a REO property you need to check the contract. Typically this is about $100 per day once you pass their COE deadline. Also, if you run past your loan rate lock deadline your client will also have to pay for a lock extension (and possibly a loan docs redraw fee). You may need a new Appraisal if it is 90 days old before you close escrow as well.

Best, Steve
1 vote Thank Flag Link Tue Apr 13, 2010
Patty this is found in the contract if bank owned it will be on their addendums. I recommend you add "Per diem to be waived" on your request for extension.
1 vote Thank Flag Link Tue Apr 13, 2010
This should be decided prior to opening escrow. Most banks will specify an amount in their addendum. Regular sellers or short sellers typically won't place it in the contract, and you will have to negotiate a per dime. Typical (or fair) is the seller's actual cost to hold the property, or a reflection of their lost cost of capital.


-Richard Schulman
0 votes Thank Flag Link Sun May 2, 2010
PATTY GREAT QUESTION IANWERED YOU DIRECTLY ON YOUTUBE PLEASE CLICK ON THIS LINK.

http://www.youtube.com/watch?v=f5Gx-_bbtQY
0 votes Thank Flag Link Wed Apr 14, 2010
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