Tuesday, July 24, 2012

Don’t Sabotage Your Escrow Close

Listen to your realtor and mortgage broker- they are the experts! Last week a realtor recommended that her client call us to review their policy well in advance of escrow close and the deadline for waiving the insurance contingencies.

The realtor, being an experienced professional, wanted to get her ducks in a row. She did not want to risk her client being denied the LOAN and risk losing the 3% DEPOSIT and the HOUSE, just because they did not get insurance on time.

The client never called us, choosing instead to use their current agent, who said everything was fine and not to worry. BIG MISTAKE- 24 hours before escrow close, the title company requested proof-of-insurance from the client’s agent. The company refused to meet the lender’s requirements. Since the agent was a company EMPLOYEE, he could not do anything to solve the problem. WHOOPS!

The realtor called Allied because we are an independent insurance broker. Since we work with, NOT FOR, over ten different carriers, we were able to get coverage for her client just in time. Whew, disaster averted!

This happens all the time. There are other insurance pit-falls that can break a real estate deal. We run all the required reports in advance for all our customers. Brush proximity, earthquake and flood exposure as well as prior claims are nasty surprises that buyers and sellers can avoid. Consult with Allied Brokers in advance of escrow close to find out what the required coverage amounts are and then get pre-approved for them. We have the resources to solve any of these problems. That’s why so many realtors and mortgage brokers recommend us to their clients.

Visit our website at http://www.alliedbrokers.com/ for information about all the types of insurance we offer. Or call 1-888-505-7988 for a free rate quote.

No comments:

Post a Comment