Question


Scott

When buying a house, should I pay an escrow shortage on the house?

The owner is a broker. She had a deal with the previous renter that was a rent to own deal. She want to do an owner-finance deal with us for a year, since we are having difficulty getting a loan. She also wants us to pay about $4000 in escrow shortage. I don't know much about escrow, but it seems shady. Can anyone help us with the details of escrow?

2 months ago - 2 answers

Best Answer

Chosen by Asker

An escrow shortage generally would have to do with past events. Someone paid lower payments into the escrow in the past than they should have and now the account has a shortage in it. The only reason I would want to help someone by coming up with that money is if they were selling me the house for a very low price. I bet that is not happening in this case.

by glenn

2 months ago

Asker's Rating: 

Other Answers

It sounds more than a little shady to me too, and i've been a real estate broker for 20 years. !st you need a real estate attorney, and if you are to pay for any of her fees, it should be taken off the agreed upon sales price.

by LoneRanger- 2 months ago