Tuesday, September 11, 2007

Close That Escrow!

I'm getting asked some questions about the amount of cancellations we are experiencing here in Santa Barbara. We have been pretty lucky in that our cancellation rate for resale transactions has not gone up much. There have been some close calls with some last minute issues getting resolved. I think this is due in large part to the real estate agents truly doing a fantastic job with regards to managing the transaction and communicating with their clients. We have seen some issues with loans taking a little longer to get approved but all in all nothing too bad. Buyers and Sellers are a bit more on edge as a generalization and I know communication between all the parties is critical to keeping everyone's emotions in check. On the refinance side of the equation the story is a bit different. We are seeing more and more borrowers who don't seem to be able to have their properties appraise high enough for them to refinance out of their existing adjustable rate loan. This is causing the cancellation of many a refinance escrow. The underwriting of these loans is also an issue. Borrowers are not being allowed to borrow money without showing that they will really be able to make the payments. These issues are particularly prevalent in the North County. I have been through this a few times now in my 26 year career and I know that communication and a professional approach to the business will certainly help close those escrows. The other piece of the puzzle is to choose experienced professionals to be involved in your transactions. People you can trust like the escrow officers and staff at Lawyers Title Co.

No comments: