Escrow Demand Letter?

Question

Im completing a wholesale deal, we're in escrow. I'm receiving a set amount of the proceeds.

The Escrow/Title companies knows the amount I am to be paid. But they are still asking me for a demand letter that includes my payee name, address, and that I will be covering my own taxes.

I tried googling escrow demand letter and payment demand letter samples.... but am getting  letters for "Final notice", "reimbursement for damages", for "default", etc....

'What is a normal escrow demand letter look like? How long and formal does it need to be? Can someone send me a sample?

Thanks

Jim Witten · Answer

So I just talked to the escrow officer, I guess she just wanted something informal with my info for their system (mailing address, name, payee name, and stating that I will be handling my taxes since they are not asking for a W9).

Im not sure why she calls it a "demand letter", and wanted it written up as a letter. I just made up a 1 pager in word and sent it as a PDF.

I would think I could of just sent her an email with the basic info she needs. Whatever, strange.

Shannon Wright · Answer

All the deals I have handled as Escrow and I have never heard or seen that. I would only require an invoice for the payment. Your tax issues are not my responsibility, this is a super odd request. I would question why they want such a thing.

Kyle J. · Answer

@Jim Witten Normally it’s the lender/beneficiary of a mortgage that fills out the demand (payoff) letter. Not sure why a wholesaler would need to fill one out. I would confirm that is the appropriate form that the escrow company wants from you. At the end of the day, just give them your info however they want it. The escrow company will have a template/form letter you can use and essentially just fill in the blanks.

Ray A Delfi · Answer

@Jim Witten I never heard of that, but did you ask the title company for a sample or a template?