Setting up an escrow account for Rent to Own property


You must be logged in to reply to this topic.

Viewing 3 posts - 1 through 3 (of 3 total)
  • Posts
  • Hello,
    The buyer on this house has signed an Option to Purchase and is doing a Rent to Own. My question is how does escrow get set up for the benefit of the buyer and seller? I understand that the Option has to be recorded separately, not through title so as not to trigger the due on sale issue. Do both buyer and seller meet at the title company? Do the funds from the buyer get taken out of their bank account each month or do they mail their check to the title company? Should it be certified checks (or money orders) with just the account number on the reference line? I guess I need a play by play for Rent to Own situations. Thanks!

    Elizabeth,
    Can you outline the deal in detail? Not enough information at this time to help.

    Elizabeth

    you really do not need an escrow account. They could charge $20 to $50 a month to handle the transaction plus an up front set up fee.

    You can collect the payments fro the buyer then make the payments on the underlying loan. Better to put the escrow fee in your pocket.

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.