This is the fifth in a series of articles, real estate investors a better understanding of the key aspects of buying and selling REOs (bank owned). The question of who should maintain the escrow account is particularly important if the investor does not acquire at or near the property.

The selection of institutions or individuals are to adhere to the recipient as follows:

1st Escrow agent of the buyer, even if the Escrow Agent is not closed. Entity or individual is less willing to communicate with investors, what is happening and hopefully will again soon when it is inserted, it is not too close. The seller to provide at some point, and expect that the trustees of the buyer to send a confirmation of the deposit – if this is the case, the contract could be terminated. If the escrow agent will send a letter to the trustee without funds in hand, it should be a problem for investors later.
» Read more: The Art of Writing REO Contracts – Part 5 – Who Holds Escrow?