||[Mar. 11th, 2010|08:39 pm]
So, the latest for those following this soap opera.|
I asked the bank to tell me what they needed to see in the escrow contract. What would make them happy?
They said they wouldn't tell me what they needed to see, so we wrote up a perfectly reasonable contract... I don't know escrow very well, but I reckon this was about as complicated as buying groceries, paying part of the bill with a gift card, part with a debit card, and part with cash. Basically, they pay the bills that get submitted with my approval as they come in.
And the bank said no, it has to be done as a single payment. As if I hadn't, you know, *asked* about what conditions would make them happy.
But then, let's look at that condition: the entire payment, for all work, has to be a single lump sum. Now, I'm sure you can all figure out how contracting works. You give the contractor some money for initial labor and materials; then you pay the remainder when the job is done. That's perfectly normal.
But the bank doesn't want to front *any* money. No partial payments. The guy is supposed to swallow the risk of all expenses until the job is done. And he can't do it. He'd have to be rolling in cash just to have the funds available to risk. And *then*, we'd have to assume he had nothing better to do with his money than risk them on this job. Sure, the risk isn't all that great, but things *can* go wrong, even when money is in escrow.
The bank's terms don't make a whole lot of sense, unless they're trying to kill the deal.
Well, we might have found a way to work it. We're moving forward. But I'm also putting in an offer on another house, and I'm applying for a loan on that other house (with, as I'm sure you can imagine, another bank).