These are ‘escrow’s’ amendments, so escrow would get the original document back. And just like with the escrow instructions, the lender will also want a copy of escrow amendments as well. Escrow InstructionsEscrow instructions simply describe escrow’s role and responsibility during the transaction to the borrower.
Since they are escrow instructions, it should make sense that escrow gets back their original instructions. And since the borrower is agreeing to enter escrow with the escrow company it should make sense why the lender wants to see the agreement signed, hence why they get a copy. Grant Deed or Quitclaim DeedA grant deed or quitclaim deed changes the way property title is held. Whether that be from a seller to a buyer. Or somebody changing the way they currently hold title. For instance if someone got married and was adding their spouse to the property or if someone is putting their house in a trust. Information SheetJust as the name implies, this is form that gives escrow all the information they need to open up escrow. The current payoff, whom they owe and how much, any private liens, HOA info and/or insurance information. InsuranceInsurance refers to the borrower’s homeowners insurance or also know as hazard insurance. Homeowners insurance covers anything that may happen to the home like a fire, flood or anything can happen to the structure of the house. Needless to say, banks won’t lend against a home that is not insured.
It is escrow’s responsibility to make sure the borrower has insurance on the home they are buying or refinancing, hence why escrow would have the original. And since the lender won't close without proof is insurance, it should make sense they want a copy of it.
Insurance Information SheetThis is where the borrower lets escrow know what insurance company that they use. Insurance company name, policy # and the insurance agent’s name and phone number. Payoff (purchase)The payoff in a purchase transaction is the same as payoff for a refinance. It shows how much someone owes on a current mortgage. However the reason why it is ordered is slightly different on a purchase. In a purchase, the payoff is ordered to show what the seller owes on the house that they are selling. Therefore the buyer never sees the payoff; it is acknowledged by the seller approving that they want escrow to pay off their balance owed. Payoff DemandThe payoff demand is also known as the payoff statement, which shows what the borrower owes their current lender. Escrow is responsible for ordering the demand from the current lender and then present it to the borrower for the approval to payoff whatever the payoff states that they owe.
Since escrow orders it and more importantly since they are the party associated with keeping all the numbers in line, they get the original. In a refinance transaction, it should make sense that the lender would want to see that the borrower was approved to pay off the current lender. So the lender would get a copy.
Since title companies record liens on and off properties. They want to see the borrower has approved to pay off the lien that currently sits on the property. Hence why you would send the copy of the payoff to title. Power of AttorneyThe Power of Attorney is also known as an Attorney in Fact. This is when someone has given another person authority to sign on their behalf. For instance, a spouse who is in the military and is deployed might give their spouse power of attorney to sign loan docs on their behalf.
The county will not record a new deed if they do not have the original power of attorney as proof. They do not take a copy and this is why they get an original. It should make sense why the lender would want a copy and unlike the county, a copy of the POA is acceptable. Once again escrow keeps records of all vital information and the proof of a power of attorney is certainly a vital document. Preliminary Change of Ownership Report. (P.C.O.R.)This helps the county understand what is going on with the grant deed or quitclaim deed. For example, if there is a transfer between spouses because of a removal from a trust, a PCOR would be filled out to help define that. A PCOR only gets filled out if there is a grant deed or quitclaim deed.
Since the PCOR goes hand in hand with the grant deed or quitclaim deed, it should make sense that the title gets the original PCOR as well. Purchase ContractThe purchase contract is pretty self explanatory: it is the contract between the buyer and seller on the terms of the sale.
Escrow’s job is to make sure both parties abide by what is the contract states, hence why they get the original. The lender won't fund a loan on a purchase if they don't know the terms of the sales contract and this is why they get a copy. ReceiptsHome buyers are required to put down a monetary deposit to open escrow. It shows the seller that the buyer is serious about buying the home. Escrow will show proof of this deposit via a receipt or also know as proof of deposit.
Since this deposit is the start of the down payment, the lender wants to see proof that the deposit was made and is why they get a copy. Escrow keeps the original. Statement of InformationThis is also known as the S.I. The S.I. is essentially an application for title insurance.
Since title is issuing the insurance, they get original back. Since escrow is the party making sure everything is being done correctly, it should make sense they would want a copy of the statement of information. Subordination AgreementTo understand what a subordination agreement is you first need to learn about lien positions. When a lien is recorded, their position of importance is noted on the title. Meaning if a lien is recorded in the first position, they are the first to be paid off. Hence why most mortgages are called first liens. If something was to happen to the property, the lien recorded in the first position gets paid first.
There can be a number of lien positions, (1st, 2nd, 3rd, etcetera). Now, as liens get paid off, the lien that was in the next position moves into the lien position that had been vacated. So if you pay off a first, the second moves into the first position.
So now that you understand lien positions you are now ready to understand what a subordination agreement is. When a loan is in a subordinate position, be it 2nd, or 3rd, or 4th, a subordination agreement tells everyone that the loans in the subordinate position stay in the same lien position even though the lien above it has been paid off.
What this allows is a new lien holder to go in the empty 1st position. As an example, if someone refinances a first but there is also a second on the property, the new lender will only approve the loan if their loan will goes in the first lien position.
And that is a subordination agreement.
Since title is in charge of everything that goes on title of the property they get the original subordination agreement.
Since the lender will only approve the loan if they go in the first lien position, it should make sense that they would want a copy of the subordination agreement. And once again escrow is the keeper of all records. It should should make sense they would want a copy as well. Termite ReportThis is a report that tells the homeowner and the lender if there are any termites found on the property. If there is, usually a termite clearance is needed to show that the problem areas have been fixed and addressed.
Escrow is required to have a termite report in the file. Trust CertificationThe trust certification is a document that proves that a borrower has an established valid trust, in lieu of actually providing the whole entire trust (which at times could exceed 100 pages).
If the property is held in a trust in any matter, a trust certification has to be filled out.
Since title is in charge of title during a mortgage transaction, then it should make sense that the title company gets the original. And since escrow is the party that keeps records on the transaction, it should make sense that they get a copy of the trust certification.