Treadstone Funding 616.774.9160

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Treadstone Funding
616.774.9160
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Escrow Repair Service is sometimes used to expedite loan closings for properties that require repairs to meet lending requirements.
The buyer or seller can put money in escrow that will ensure the
completion of the required repairs. This money is held in an escrow account at closing until the necessary repairs are made and
the house is up to code.
This allows the loan to close and the work to be completed after
closing. This protects the buyer and seller as the work is done after closing, although the work must be completed in 14 days.
Legally, Escrow is an agreement inside a contract made between people or companies. The inside agreement is that an
independent and mutually trusted third party will take and
then dole out money or documents for the original contract
holders.
Treadstone Funding
616.774.9160
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One thing we see all the time when we are trying to
help a client finance a home, is that the deal comes
back from the appraiser with the requirement that
something needs to be updated or fixed in the house
before it can be approved for financing. These are
functional obsolescences that prohibit any type of
loan & limit the seller’s prospects to cash buyers
only.
Often times this can lead to the whole deal being a
bust and the customer going back to square one in
the house hunt.
One way around this problem is Escrow Repair. This
service is offered by Treadstone Funding to pay for
necessary repairs (i.e. broken furnace or leaky roof)
after the loan is closed. Most lenders do not do escrow for repair with any loans because there is a
short time window in which the repairs must be
completed.
Since this topic might still be confusing to some, I will tell you how it worked out for some
former clients in real life. John wanted to buy a house from Mary, but the furnace in Mary's
house was broken and needed to be repaired. Mary didn't want to replace a furnace in a
house that was old, but she wanted to sell the house to John. John decided that he was going
to use an FHA loan to finance his purchase of the home. John's bank (most won’t) would not
approve of his loan until the home was livable/functional, meaning until it had a working
furnace. John and Mary agreed to divide the cost of the furnace pending the sale of the
house. They both put their halves of the money as well as a contingency amount into the
hands of the trusted third party, in this case, Treadstone Funding. We held the funds in
"escrow", allowing the loan to close, and the sale of the house to happen. To meet our escrow guidelines, we had the repairs done by a licensed contractor, and had them completed
within 14 days. Because the repairs were completed on schedule in 14 days, John is now in
his new house and warm & toasty because he has a brand new furnace. The best part for
John and Mary is that they did not have to put money into the house before closing, thus
avoiding the risk!
Treadstone Funding
616.774.9160
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Escrow repair works great because it allows people to get the loans they need in the same
time frame as they make required repairs. The repairs however must be done by
"licensed" contractors.
Although there are may be reputable licensed escrow websites I personally recommend a
local licensed lender. If you are in Michigan, Treadstone Funding is the answer for Escrow Repair.
The other thing to consider is that lots of contractors and repairmen can be licensed but
you need workers who will complete the job fast. At Treadstone we build contacts with
those who work fast and recommend them to our escrow repair customers in the Grand
Rapids Mortgage market.
Treadstone Funding
616.774.9160
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I always try to end with the basics when explaining a new loan or
mortgage service because to most people this stuff is not second
nature. One of the huge things with escrow repair is that it can be
added to most loans. All it really is— is a way to get necessary repairs done after the loan closes, so that the risk is not on anyone
person in the transaction. By closing your loan and having the
work done afterwards you avoid the risk of going out on a limb before hand. But remember its always best to contact a professional
before you go through with anything!
Treadstone Funding has helped first time home buyers realize the dream of leaving that rental behind, and owning a house. Whether it’s conventional lending, an FHA program, VA
loan, Rural Development or a 203k mortgage loan, the team at Treadstone is here to find the
right mortgage for you. Treadstone Funding is a full service residential mortgage lender.
We’re easy to find.
The website: www.treadstonemortgage.com
We’re on other social media sites as well.
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©2011 Treadstone Funding
25 Commerce
Grand Rapids, MI 49503
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Treadstone Funding
616.774.9160