Escrow Question for Northern California

[Murdock]

My husband and I are in the process of securing financing with a local mortgage company. We are buying a Silvercrest from a dealer located appr. 45 miles from where we live.

We have set up an escrow account with the minimum $ required with a Title Co in our area. Now we find out that the dealer likes to use their own title co and are asking us to open a second escrow account with them. I don't see why we need two.

Thanks alot,
Barbara Murdock
Jamestown California

[Randy Eaton]

Hello Murdock,

Did your sales center give you a reason? I don't feel you need to set up another escrow.

Randy Eaton

[Murdock]

I don't think so either, but, we were told that the dealer wants their own account. My husband was told they need $6800 in their own account in order for silvercrest to start construction of the house. That sounds like a deposit to me. Wouldn't that be part of the loan?

Incidently, we own the land outright and using it as collateral. The loan is for the foundation, setup and house.

Thanks Randy,
Barbara and Rich Murdock

[rmurray]

I sorta doubt that this is a Silvercrest rule.....The dealer has to commit payment before they build the home...but Sivercrest could careless if you have a deposit with the dealer..

That said...On custom orders...especially those with any special changes and/or features...most dealers some some financial commitment to ensure your desire and commitment to buy the home...

Most of our customers with land Free and clear seldom have much cash to commit..We get commitments with leins on the property with liquidation agreements in case you change your mind...

As far as which title company you use...You are paying the bill and have the right to chose the one you like...They are there to represent you..

[Art Rigsby]

Barbara,

I am in Clearlake Oaks, CA and purchased a Silvercrest late last year. The dealer only asked me for $1500 down in order to start construction of our home.

Art