There is a law pending Gov. Schwarzenegger's approval that would allow Buyers of foreclosed properties to choose their own Title and Escrow companies even though a law exists forbidding the directing of this business to specific companies.
Banks use the same companies because it makes it easier for them to conduct business with just a few people rather than scattered all over the state. However, this has led to numerous complaints from agents citing that the escrows are far from smooth, and sometimes fall through.
It also does not make sense for an escrow company in Los Angeles to handle a transaction in Sonoma. The rules differ from city to city, let alone county to county. And agents in Northern California can't just walk into the escrow office and talk to the officer face-to-face. It would also appear that the neutrality is compromised because those escrow companies have a strong relationship with the bank.
The common thought is that service at the title and escrow companies would improve if the buyer had chosen them.
The danger is that the buyers will end up using the bank's choice anyway because the bank will turn around and refuse to pay their end of the fees.
Let's see what happens!
Jane Peters, connecting you to the L.A. real estate scene
Buying or selling real estate in Los Angeles can be an overwhelming process. Contact Jane Peters, Los Angeles realtor specializing in absentee owners, out of town buyers, and those who need that extra attention, in order to make the transaction a smooth, trouble-free, and fun experience.
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It only makes sense. We are in northern Nevada and often are directed to escrow companies in Las Vegas. Sillier still - they list northern Nevada properties with Vegas agents.
Amazing isn't it, Jim.
"The danger is that the buyers will end up using the bank's choice anyway because the bank will turn around and refuse to pay their end of the fees."
...and that is the loophole, dah-ling. The proposed new law should incorporate a provision that requires the bank to pay certain seller-mandated fees, no matter who the title/escrow company is! :)
Leilani
That ain't going to happen, Leilani. I can't see the government enforcing more fees on top of what is already a loss. Oh, well.