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Escrow Account Questions

Escrow accounts are special accounts set aside for the sole purpose of holding money intended for the payment of an obligation. Escrow accounts are used largely in connection to mortgages to hold money within the accounts for taxes or insurance payments. This is done by adding the payments to the mortgage payments and these added funds are set into the escrow account and accumulate up to the time the taxes or insurance are due and are then paid directly by the lender. Escrow accounts can be used for many reasons and offer many benefits. If you would like to learn more about escrow accounts, take a look at the more commonly asked escrow questions below that have been answered by Experts.

I have money in an escrow account in a Wells Fargo Bank from a Land Sale. Why if the money was supposed to be released last month am I still waiting? My attorney isn't being helpful.

Generally, an attorney wouldn't be vague as to the issues with the escrow account. Without your attorneys input, there is really no way of knowing exactly what the hold is. You may want to keep after the attorney for the answers. Another thing you could do is contact Wells Fargo by letter with return receipt request. You may be able to find out what the issue is directly from Wells Fargo and you would have proof that you have contacted them. Other options would be to hire a new attorney to file a complaint or file suit, or you could report Wells Fargo to the appropriate banking authorities for not following the terms of the escrow agreement.

I need to open an escrow account to accept funding for the production of my film. What is the procedure for opening an escrow account?

Once you have set up your production company for the project, you should have a tax ID number for the corporation, then all you need to do is go to the bank and open two accounts, one you title general account the other you title escrow account. The escrow account is where all funds go in and then you transfer them to the general account as they are earned or needed for the payments you must make. There is no magic to this and the bank can set this up for you without any problems. Once the money is in escrow, to pay your bonds, insurance and payments to production, you invoice those amounts to escrow and then transfer the money over and make the payments.

If money is in an Escrow account with a lawyer and the money is to satisfy a Promissory Note can the lawyer be made to release it to his client rather than satisfy the Promissory Note?

An attorney will be unable to make any decisions about the money without the permission of the client. This means any distribution of the money (except for the attorney's contingency) cannot be completed without the specific accordance of the client. Regardless if the money is for a promissory note or the payout of a settlement. If the attorney attempts an action that doesn't include the permission of the client, he/she is facing a breach of ethics.

Is an escrow account at settlement ever established between the two sellers (divorced spouses)?

If you are asking if an escrow account is ever used to distribute money from a sale that occurred as a result of a divorce, then the answer is yes. Usually, when property is being sold and more than one person will receive the money from the sale, the use of an escrow account is used with specific instructions of how the money will be divided. The parties involved usually agree to the terms of the escrow account and sign before the closing of the escrow.

Does a mutual release have to be signed by both the buyer and seller to close an escrow account and have the funds released?

The way the escrow account works is; the person who is releasing the money to the other person on the account must provide the permission for the release of the funds. Furthermore, the escrow company must have the signature of the receiving party stating that they have received the money. So, to answer the question, technically, it requires both signatures in order to close the escrow account.

Escrow accounts and how they work may be confusing to people who have never used one. Many questions arise pertaining to escrow accounts and how they benefit the involved parties. If you have questions or concerns, you should ask an Expert to explain how escrow accounts work.
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Recent Escrow Questions

  • I found out from my escrow company the night after signing

    I found out from my escrow company the night after signing load doc's that the home I was purchasing had a lien on it....long story short, the sellers inherited the home from deceased parents.....the lean is over 22 years old....the escrow company did find the lender, they went out of business, but the debt was bought by another lender was ...we asked for a demand..and well..GO FIGURE..no demand, escrow held $$$ up from sellers...I got a title insurance policy (escrow paid for along with a credit from the Agent/Broker that mis-represented myself and seller)....THEY BOTH DROPPED THE BALL..prelimiunary title was see by both broker/agent and the title company and no one did squat till i said..NO FUNDING HERE UNTIL YOU DO....and blah blah blah...a meeting with the VP of escrow...a huge parting with my realtor...and I closed with a promise letter signed by the escrow VP that they would follow this demand, or...i got in writing that after 30 days after my closing date, they would help walk the sellers thru obtaining bond..and have signed rights by sellers to use the funds held in escrow to do so without their permission....what ever it takes to clear this lean...and...I HAVE IN WRITING THAT THEY HAVE TO SHOW ME THE DEMAND ONCE RECEIVED..AND THE RECONVEYANCE OF THE TITLE ONCE THAT IS DONE...AS OF TODAY NOTHING THEY (ESCROW) SAID HAS HAPPENED (IT IS 37 DAYS PAST MY CLOSING DATE URRR) AND NOW THE ESCROW TELLS ME, THE BOND CO. WON'T ISSUE DUE TO THE LENDER (BENNICICIARY AND/OR HEIR OF THIS DEBT) HAVE BEEN LOCATED..THEY WILL NOT ISSUE A BOND TO THE SELLER...THEY HAVE TO DEAL WITH IT DIRECT.... .AND STILL HAVE THE SELLER IN THE DARK ABOUT
    WHO'S ON FIRST.................AND NOT TALKING TO THEM ABOUT A BOND AT ALL.....BUT HEY..escrow tells me "you have title insurance" and these things take time..I SHOULD HAVE NO WORRIES..............UH...I CAN'T SLEEP AT THIS POINT...TIME TO GET AN ATTORNEY RIGHT?.................AND CALLING THE REAL ESTATE BOARD TODAY..AND A BOND COMPANY AS I DON'T BELIEVE ANY PARTY ACROSS THE TABLE AT THIS POINT...WHAT DO YOU THINK....??????????????????????????
  • I have been working a database administration contract with

    I have been working a database administration contract with a large company in California. A small company in
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  • We are a hay company in TN and we hired 5 or more different

    We are a hay company in TN and we hired 5 or more different semi companies last year during a few days to load some hay we bought at a large farm / ranch around Palestine, TX. The farm said their automatic gate got damaged and they think they know which truck did it but they didn't see it actually happen. At first when it happened the farm said they thought it was one of two of the three trucks that were there that day and all were owned by different companies. After they asked more questions and looked at the time they felt it was one particular truck owned by CRST Malone. Their driver says she didn’t do anything and there was no damage to her truck. She also observed the gates were not acting normal according to her when she drove through them but she says she watched her mirrors to make sure she cleared the gates. Her trucking company processed the claim through AIG Insurance and AIG didn’t approve the claim since the truck had no physical damage and they also said it's the drivers word against the farms word – a he said, she said situation. The one estimate the farm had on the gate so far was in $3,500-$3,700 range but then later they said over $5,500 damage. I had money for hay bought on account and deposited with the farm there in TX for the hay and now they won't release the last $3,696 I had paid them.
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    We paid the CRST trucking company the $1,600 owed them for hauling the load since we were told by JA that we really could not legally hold them money from them under these facts or circumstances as we know them.
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    I hired an attorney and she felt we had a good case that we deserved to be paid that money. She pretty much brought up all the points above. She corresponded with the other sides attorney who asked to have a copy of the trucking bill sent which we did and she also stated in that email: "As I have stated previously, other than hiring it to haul the hay, my client has no ownership in this trucking company, nor does it have control over this trucking company. The gate issue is a dispute between your client with trucking companies that went to your client’s premises that day, I would suggest you speak to them."
    Their attorney then said: "I may be confused, so correct me if I am wrong. I understand your company hired the trucking company, and they were not hired or retained by J. A. Wolf Creek. If this is correct, then I believe they are your client’s agent, and they are responsible for the damage." "And later in a follow up email when he didn't answer she said: "As I have stated previously my client has nothing to do with this dispute regarding the gate damage, and your client needs to go after the trucking company that your client alleged to have caused the damage. Therefore, we hereby request your client to release the funds in escrow to my client."
    Their attorney responded: "I may be confused, so correct me if I am wrong. I understand your company hired the trucking company, and they were not hired or retained by J. A. Wolf Creek (the farm/ranch). If this is correct, then I believe they are your client’s agent, and they are responsible for the damage."
    My attorney then said: (remaining short summary to follow next)...
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