What does title "held in escrow" mean

[valeriekay_21]

What is the name of your state (only U.S. law)? Illinois
We are buying a mobile home and paid all but the last $2,000, which we have till the end of the year to pay. In the mean time the title has already been signed by the seller and is being held in escrow by they attorney. There was a contract signed and everything. They were suppose to have all of their belongings out and the mobile home clean by midnight on December 31st. Well it hasn't happened. They are refusing to move their stuff and also said that technically the place is still theirs. I'm not too worried about it because of the contract and the fact that we have an attorney involved but I do have a couple questions and I want to be sure that we are protecting ourselves.

1. What exactly does title held in escrow mean?
2. Does the title being in escrow give them the right to come into the mobile home?

Just need some opinions on the situation. Thanks! =)

 

[FlyingRon]

Generally there is a chicken and egg thing in dealing with sales of things. The seller doesn't want to give the title to the buyer until they get the money and the buyer doesn't want to fork over the cash until they get the title. It is even more paranoid when there are liens/finance companies involved on either or both sides.

To solve this, someone holds the title and the money in escrow, that is, all ready to go but outside the constructive reach of either of the parties. When everything is settled the money is given to the seller and the title to the buyer.
Lawyers sometimes handle escrows and sometimes a bank trust department can also do so. There are even specialized escrow companies.

We'd need to see the purchase contract to understand if you get possession immediately or only after the last payment.

 

[HomeGuru]

What is the name of your state (only U.S. law)? Illinois
We are buying a mobile home and paid all but the last $2,000, which we have till the end of the year to pay. In the mean time the title has already been signed by the seller and is being held in escrow by they attorney. There was a contract signed and everything. They were suppose to have all of their belongings out and the mobile home clean by midnight on December 31st. Well it hasn't happened. They are refusing to move their stuff and also said that technically the place is still theirs. I'm not too worried about it because of the contract and the fact that we have an attorney involved but I do have a couple questions and I want to be sure that we are protecting ourselves.

1. What exactly does title held in escrow mean?


**A: it means that escrow hold the title docs and does not deliver such docs until all debts are paid in connection with the sale of the home.


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2. Does the title being in escrow give them the right to come into the mobile home?


**A: no but there should be something else in the sales document that allows inspection, access in the event of default etc.

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Just need some opinions on the situation. Thanks! =)

**A: if the sale involves both mobile home and land, then the Seller needs to file to foreclose. If only the mobile home then the Seller need only repossess.

 

[LdiJ]

**A: if the sale involves both mobile home and land, then you need to file to foreclose. If only the mobile home then repossess.

Its the buyer posting, not the seller.

 

[HomeGuru]

Its the buyer posting, not the seller.

**A: ok thanks. Serves me right for responding to 10 posts in 10 minutes.