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How Title Agents and Escrow Officers Handle Credit Card Payoffs During Real Estate Closings
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Credit card payoffs during real estate closings can create logistical challenges and potential post-closing issues for title agents and escrow officers. Here’s an in-depth look at how industry professionals handle these payoffs, the challenges they face, and key strategies to streamline the process.
Who Handles Credit Card Payments at Closing?
A common debate centers on who should be responsible for ensuring credit card payoff checks are sent to creditors. Here are the most common practices:
- Handing Checks to Borrowers
Many title agents prefer to give the payoff checks directly to the borrower, along with clear instructions to send the checks along with their statements. Borrowers are typically asked to sign an acknowledgment form that emphasizes their responsibility for timely mailing and proper payment handling.
Some professionals also recommend borrowers visit their bank in person to make payments, ensuring prompt processing and avoiding mailing issues. - Mailing Checks Directly
To reduce the risk of lost or delayed payments, some agents choose to mail the payoff checks directly to the creditors. This approach often includes:
- Requiring borrowers to provide updated statements, full account details, and mailing addresses for each payoff.
- Using trackable mail services to ensure payments can be monitored.
- Charging additional fees to cover administrative time and postage costs.
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Importance of Accurate Documentation
Accurate and complete documentation is crucial for smooth credit card payoffs during closings. Title agents often require borrowers to:
- Submit Full Statements: Up-to-date statements with…
