Legal Question in Real Estate Law in California
in escrow
While in escrow does the owner of the house have house payments or are they on hold till the property is sold.
1 Answer from Attorneys
Re: in escrow
The opening of an escrow does not waive or supersede the current owner's obligations under his separate, prior contractual or statutory obligations. As a borrower, the owner must continue to make loan payments. As owner and assessee, he must continue to pay the property taxes.
In fact, failure to stay current may be a breach of the contract of sale and entitle the buyer to rescind the contract, since the seller cannot deliver good title if there is a default on a mortgage or delinquent taxes.
As a practical matter, of course, a seller can probably get away with not paying the mortgage or taxes, because those items, along with late fees, interest and penalties, will be deducted at close of escrow, and would not usually be deemed a sufficient cloud on title to warrant rescission. However, I would advise staying current if possible, to avoid surprises and avoid a possible threat to pull out of the deal.