What is a Long Term Escrow Agreement?
An escrow agreement is an arrangement made under contractual provisions in which an independent third party is responsible for the preparation of documents, processing of payments and accounting of funds for the transacting parties.
Types of Agreements we service:
- Real Estate
- Auto and Equipment
- Business Purchase or Sale
- Holdback Agreements (Settlement Agreements, Construction, Home Warranty, etc.)
What We Do:
We are responsible for the set-up of accounts and service of contracts between buyer and seller.
In doing this, we retain the original documents for safekeeping. We handle all the details related
to accepting and distributing funds, calculating principal and interest and retaining reserves for
taxes and insurance. We also prepare year-end tax statements, annual reports and file 1098’s and
1099’s with the IRS. We process the paperwork and payments in an efficient and timely matter
that makes it easy for you.
FAQ
Yes. Escrow Montana provides the option to set up a Taxes and Insurance Reserve accounts for an additional $75 Setup Fee. We will also need to collect a 2 month additional deposit of what your monthly Taxes/Insurance contribution needs to be as a buffer for your reserve account. Escrow Montana will monitor tax and insurance costs and adjust the monthly contribution based on the calculation needed to pay the Tax and Insurance invoices.
Yes, you just have to email Escrow Montana authorizing us to change your debit date. We must receive your request no less than three (3) business days before the due date.
No. We do not prepare any types of legal documents. Contact your attorney, real estate professional, or Title Company for assistance in Document Preparation.
Does Escrow Montana send late payment notices if borrower gets behind? What about If the Borrower is in default?
Yes, we send out late payment notices at the end of each month. If the borrower goes into default, we recommend contacting your attorney. We will follow their guidance.
Escrow Montana requires written instruction signed by all account parties to modify all loan repayment terms. Terms requiring mutually signed, written instruction include but are not limited to, principal balance changes, interest rate adjustments/calculation periods, payment amount changes, payment due date changes, late payment charges or grace period, etc. Escrow Montana charges a $75 Modification Fee for Contract Modifications.
Please reach out to Escrow Montana via phone or email and request a History Ledger.
Upon receipt of the borrower, Escrow Montana holds the funds for three (3) business days to ensure the funds are good (unless payment is made with Cash, Cashiers Check, or Wire). Once the funds are disbursed on the morning of the 4th business day, you will receive an email receipt (or mailed receipt for extra $5.00 Fee) showing payment breakdown including Principal, Interest, and next payment due date.
Escrow Montana can take payment in a variety of ways. We can put you on Auto ACH (automated clearing house) so your payment is withdrawn on the due date each month. Manual ACH (send email requesting a payment to be made) Cash, or Check. No Online Payments yet…in the works!!
You may request a payoff quotation by sending us a request via email with the estimated payoff date.
See Fee Schedule on our documents page. Please call with any questions as more complex Escrows may incur additional fees.
To set up a new account, along with the one-time Setup Fee, Escrow Montana requires the original Seller Financing Documentation (Promissory Note/Deed of Trust, Contract for Deed/Notice of Purchasers Interest, Asset Purchase Agreement, etc). We will also need our Escrow Instructions filled out and signed by both parties (see docs)
When it pertains to a Real Estate Contract, Escrow Montana has to operate within the borders of Montana. If it is an Asset Purchase Agreement, Holdback, or Personal Note of some kind, Escrow Montana can help service your contract even if its outside the state of Montana.