What are the pros and cons of using an escrow holdback for repairs?
When you buy or sell a home, you may encounter some issues with the property condition that need to be resolved before closing. One way to deal with these issues is to use an escrow holdback, which is a portion of the seller's funds that is held in escrow until the repairs are completed. But is this a good option for you? Here are some pros and cons of using an escrow holdback for repairs.
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Consult your lender:Before considering an escrow holdback, check with your mortgage lender. Many lenders no longer allow this for repairs, so confirming its possibility is a crucial first step.
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Adjust the price:Instead of an escrow holdback, you can negotiate a price adjustment to cover repair costs. This gives you immediate funds to manage repairs without the wait or escrow complexities.