Posted by LisaWI on 2/13/13 7:01pm
Msg #455734
Need Help on a Question
I am being asked to pick up a check from borrower, but post dated 30 days, made out to the lender, and they are saying its for an escrow advance???? Sorry, but Ive never picked up a check in this manner......the checks are always made out to the title company and the checks are always for amounts due from the borrower from the HUD...
I dont have the Final HUD yet to see if there are funds due from the borrower, but according to the sample lender HUD in the lender package, no funds are due.....
Is this legit? It feels weird.....lol....
And what is an escrow advance? Thats a new one for me too.......
9 years in the business and still new things come up Ive never heard before......this business is simply amazing.....
Thank you in advance for all your input 
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Reply by Jessica/FL on 2/13/13 7:28pm
Msg #455741
Is it a CC signing? I did one where I have collected a post dated check. CC fronts the money for the closing and then they clear the check after it closes.
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Reply by LisaWI on 2/13/13 7:55pm
Msg #455747
No, its not a CC but its been cleared up.....the lender just does things a little differently.....
Boy this threw me for a loop I tell ya......
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Reply by jojo_MN on 2/13/13 7:57pm
Msg #455748
I sent a message on the network, but you must not have gotten it.
It is legit. They didn't have the funds that they would have had to pay at closing, so the lender is giving them an "escrow advance". They would have been getting this money back from the money in their current escrow account but sometimes that bank doesn't send it for 30 days. Instead of raising the loan amount to cover the difference, they are giving the borrowers an interest-free loan for 30 days. At the end of the 30 days (or whatever date they post-dated the check for) the bank will deposit it.
They are not getting "more on the side" and there is nothing illegal about it. The borrowers would have to pay this amount at closing had they not had the escrow money coming back from the loan they are paying off.
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Reply by LisaWI on 2/13/13 8:27pm
Msg #455752
Hey Jojo, you are correct, I didnt see your posting yet in our network forum....buuut, since then Janel did call me and explain. And to top it off, I was looking for a separate HUD and found out the HUD is actually in with the closing documents.
So its all good.....I understand everything now and thank you for coming to my rescue....Our Network Rocks! 
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Reply by Linda Juenger on 2/13/13 11:22pm
Msg #455769
I've had a couple like this just the last couple weeks. I hadn't run into this either until recently. I do understand it but made my head spin till it was explained to me. Makes perfect sense.
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Reply by LisaWI on 2/14/13 6:42am
Msg #455787
Exactly Linda! Given that we are taught not to pick up amounts that are not reflected on the HUD, it did indeed make my head spin......especially with the company this is for as they have a stellar rating!
Jolene did an excellent job of explaining it above.....and the LO called me last night, he was very nice and accommodating.....
I am looking forward to doing more loans for this company as I think its going to be a beautiful relationship Cheers!
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