Advantages Of Escrow Payment In Freelancing

The fashionable phrases of this Internet era are 'Working from home' and 'Tele Commute' Jobs. Freelance job opportunities are getting popular every day. The prospect of earning from the comforts of the home is simply irresistible. Moms as well as the aged people see this freelancing facility as a boon and benefit. Billions of Net connections, Websites and E-commerce Internet Stores have revolutionized and shattered the basic concepts of conventional career mind set.

So what?

It is Cats and Dogs out there to seize the first TEN places in search engine results. Technology as well as the creativity and nuances of talented people certainly help winning this fierce battle of 'Key words' and 'Optimization'. Freelancers now step in to take stock of the situation and tender their unbelievable services.

Can you elaborate on 'Unbelievable' services?

A student on vacation in the remote corner of China writes One hundred Hypnotizing Articles on Ford Car Dealerships in California, USA! A little girl from the slum of Calcutta, India, designs luminous Flash animations for Apparel and fashion sites in Germany! All she has to type in the messenger is "Let's start". Internet has devastated the barriers of Race, Caste, Language and Religions in the world and fashioned a Cosmopolitan globe for sure!

Thousands of projects are posted every minute and millions of bids are placed to win the projects every day. To name a few job opportunities out there, the following categories sum up the enormity of the projects waiting for freelancers to bid upon.

Proof reading already existing text.

Rewriting the given text. Translation.

Creating unique web content. SEO.

Creating Hypnotizing sales letter viral copy.

Data entry. Data processing. Harvesting details from the net.

Cloning good sites.

Web designing. Web promoting.

Coding.

Linux. UNIX. Windows. Dot Net. Pearl. Python.

Many more!

Gothilla! Thelavalethu! Malum nahi! (All three mean to say - 'I don't know!') Honestly!

Getting a freelance job or finding a professional freelancer around the world is literally a mouse click away!

Fine! Let it be in that way. What's the burning thing now?

The one and only delicate issue in this arena of freelancing, apart from deadlines and service quality is, 'Payment'. Service buyers are reluctant to pay 'up front' for obvious reasons and the providers are also a little bit hesitant to start and submit the project in the absence of an advance. The stories of people burnt left to right from both sides of the counter are circulating in the thin air of freelancing ambiance. Out sourcing and freelancing have evolved and are here to stay. They can't be ignored. Tricky situation indeed!

What else could solve this problem?

Again technology intervened and established a payment method called Escrow, which has indeed eradicated this problem. In its simplest context, Escrow allows the Buyer to deposit the sum assured against the name and account of the provider. It is not actually added in to the managing account of the provider. He or she enthusiastically starts, finishes and submits the project.

If the buyer grins on seeing the outcome, he releases the payment with one click. If he frowns, he creates a ticket in the Help desk of the freelance site and the staff in charge there analyses the case and returns the money to the buyer. On the other hand, if the staff in charge sees that the coding has been accepted by the buyer and he or she declines to surface online to release the payment, the staff acts as ombudsman and releases the payment to the current account of the provider.

Can you agitate on this a little further?

Needless to say, with the money being deposited in the Escrow, both service buyer as well as the provider can rest assured and quarry the inner most expertise with out any psychological hindrance. The coder is confident that the returns are with the third party and he will be paid once he completes the project successfully. The web master feels certain that the money is only with the facilitator of the project, and will be released only after the submission and complete satisfaction of the buyer. Undoubtedly the Escrow payment system is better than the trendy 'One hundred percent money back guarantee' schemes.

It is a boon for the client as well as the clientele, because, most of the Freelance sites which facilitate and act as a buffer arena are having this Escrow payment system inbuilt in their setup. More over, they constantly encourage users to make use of this exclusive facility. Cancellations, retracts of Bids and projects usually percolate to a single main reason. Payments. So the market leaders like www.getafreelancer.com and www.guru.com are extending this facility to the members in order to make sure that both the employer and the employee are protected.

Well, what are you trying to say in finality?

Since the major thorny issue of payments is wiped out from the freelancing vicinity, the freelance enthusiasts can be self-assured and start accepting the projects of their choice and expertise. Well, a few hundreds of Dollars every week could come in handy for many subtle spending spree in the neighborhood! Won't they?

'Trafficlancer' is a freelancer who is an expert in driving traffic to many sites of his clients. Numerous other useful articles, which can be down loaded for free, decorate http://www.freewebs.com/trafficlancer. The author wishes all the very best to the existing as well as the 'wannabe' freelancers around the globe!

Trafficlancer is the webmaster of complete freelancing insider information website http://www.freewebs.com/trafficlancer

Escrow Accounts: How They are Used in Your Real Estate Transaction

There are many people who are involved in the purchase of your home: agent, broker, lender, seller and an escrow agent or company. The agent and broker are responsible for providing you with a property and negotiating a deal to buy from a motivated seller. The lender, either private lender, bank, or mortgage company provides you the funds so you may purchase the property. And then there is an escrow involved. It is common knowledge that an escrow is what a deal must go through before the deal is closed and the transaction of your purchase from the seller is complete and you own the property.

But what exactly is escrow and how does it work in this situation?

Escrow refers to a neutral third party that is responsible for transferring or exchanging assets, usually property and money. There are escrow agents who are in charge of an escrow account, which is specific to a certain deal or transaction. These escrow agents usually work for an escrow company who are responsible for housing the account.

When you purchase a house, after all negotiation have been finalized and papers have been signed, the seller places the property title into an escrow account. Here, it is kept in safe keeping until the buyer transfers the money to purchase the title (property) into the escrow account. After a certain amount of time, the deal is said to close escrow in which case the buyer receives the title of the property, now officially owning it, and the seller receives the funds from the escrow account.

The escrow account is used as protection to both the seller and buyer. If something were to go wrong during the escrow period, the seller would simply get the title back from the account and the buyer is in no danger of losing the funds. This eliminates a seller losing the property or buyer losing funds, and protects the assets of both parties.

The escrow account also houses taxes and commissions that are to be paid to the state and brokers or agents involved. The escrow account or agent is solely responsible for the distribution these funds so it is done fairly and with disclosure to all parties involved. Deals can be done without escrows, but it is simply safer and smarter to go through a third party escrow so everything is performed legally and all events of the deal are accounted for. It protects all parties and ensures the broker and agent get their commissions and that taxes are paid fairly.

It is highly recommended that you always use an escrow when purchasing property. In more complicated or higher priced deals, an attorney can assist you in creating an escrow account to make sure all parties are properly taken care of.

Another tip: either the seller or buyer may choose the escrow company. Some sellers always prefer to use their own, and some buyers prefer to use their own. Excluding personal preference, as long as it a reputable company, really any escrow company will work. Because it is a neutral third party and the escrow company really does not have a personal interest in the deals that are occurring, you can consider it a safe place for your assets until the deal is complete.

John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/mortgage/.

FSBO ?the Secret Of 'after Settlement Escrow' To Solve Problems

Most FSBOs (people who are selling their own homes) are aware of the conventional use of escrow. In this article, we look at ways to use escrow to solve problems.

Escrow

Escrow means different things in different parts of the country. In California it?s part and parcel of the settlement process. In Virginia, while there?s no formal escrow before settlement, the settlement agent gathers title information, draws or has a deed drawn, coordinates with the lender, receives various inspection reports and in general conducts an informal escrow in the days before settlement. The difference is that, in Virginia, usually documents aren?t signed by the parties until they meet at the settlement table. It?s the use of escrow after this period that we?re concerned with here.

A Problem Rears Its Head

What?s possible varies from state to state, but creating an escrow account (usually held by the settlement agent) after a home is sold can solve problems. What sorts of problems? Let?s look at a few.

First of all, let?s assume the buyer or seller needs, or wants, to settle by a certain date. Lots of things can cause this including the date school starts, the date a breadwinner starts a new job or the date of settlement on the seller?s new home.

Now, let?s suppose a problem crops up which would prevent that settlement deadline from being met. Such problems might be caused by the discovery of termites and termite damage, the discovery of encroachment on a utility right of way by a garden shed on the property being sold or the discovery of high levels of radon gas within the home.

Let?s further suppose that the buyer and seller have agreed on the basic solution of the problem. In the above examples, typical solutions might be that the seller will have the home treated for termites and have a licensed contractor repair the damage. Or the seller will have a contractor move the shed out of the right of way. Or the seller will install a radon mitigation system. Of course, everything is negotiable, and a buyer who wants a property badly enough could agree to fix the defects himself.

What if the pest control company, contractor or the radon mitigation company can?t finish their work until after the planned settlement date? What happens then? Most frequently, settlement is delayed until these sorts of things are taken care of, but sometimes that isn?t desirable. Sometimes delay of settlement can be a deal killer.

Problem Solving 101

Enter the ?after settlement escrow.? The parties agree that an amount of money (usually a bit larger than the estimate) is set aside in escrow pending completion of the work. The escrow agent has clear (usually written) instructions about what must be done before the money is released to the person who put it up (or before the work is paid for and any excess returned to the person who put it up).

The funding of an after settlement escrow usually comes from the proceeds of the sale, so it can be used where there are no funds to take corrective action any other way. Even if the person responsible could get a loan for the purpose, the process could take too long to meet the settlement deadline. In that way, it can be a ?cash flow? solution, too.

No matter what problem you encounter, it?s usually possible for a willing seller and a willing buyer to work things out. Remember that all sorts of needs can be accommodated without anyone?s being a loser. Situations in which both buyer and seller are winners happen frequently. With any luck, that?s what will happen in your case. It just takes creativity and persistence.

 Raynor James is with http://www.fsboamerica.org - FSBO homes for sale by owner. Visit our "sell my home" page at http://www.fsboamerica.org/seller.cfm to sell your home yourself with a free 1 month listing.

FSBO ?the Secret Of 'after Settlement Escrow' To Solve Problems

Most FSBOs (people who are selling their own homes) are aware of the conventional use of escrow. In this article, we look at ways to use escrow to solve problems.

Escrow

Escrow means different things in different parts of the country. In California it?s part and parcel of the settlement process. In Virginia, while there?s no formal escrow before settlement, the settlement agent gathers title information, draws or has a deed drawn, coordinates with the lender, receives various inspection reports and in general conducts an informal escrow in the days before settlement. The difference is that, in Virginia, usually documents aren?t signed by the parties until they meet at the settlement table. It?s the use of escrow after this period that we?re concerned with here.

A Problem Rears Its Head

What?s possible varies from state to state, but creating an escrow account (usually held by the settlement agent) after a home is sold can solve problems. What sorts of problems? Let?s look at a few.

First of all, let?s assume the buyer or seller needs, or wants, to settle by a certain date. Lots of things can cause this including the date school starts, the date a breadwinner starts a new job or the date of settlement on the seller?s new home.

Now, let?s suppose a problem crops up which would prevent that settlement deadline from being met. Such problems might be caused by the discovery of termites and termite damage, the discovery of encroachment on a utility right of way by a garden shed on the property being sold or the discovery of high levels of radon gas within the home.

Let?s further suppose that the buyer and seller have agreed on the basic solution of the problem. In the above examples, typical solutions might be that the seller will have the home treated for termites and have a licensed contractor repair the damage. Or the seller will have a contractor move the shed out of the right of way. Or the seller will install a radon mitigation system. Of course, everything is negotiable, and a buyer who wants a property badly enough could agree to fix the defects himself.

What if the pest control company, contractor or the radon mitigation company can?t finish their work until after the planned settlement date? What happens then? Most frequently, settlement is delayed until these sorts of things are taken care of, but sometimes that isn?t desirable. Sometimes delay of settlement can be a deal killer.

Problem Solving 101

Enter the ?after settlement escrow.? The parties agree that an amount of money (usually a bit larger than the estimate) is set aside in escrow pending completion of the work. The escrow agent has clear (usually written) instructions about what must be done before the money is released to the person who put it up (or before the work is paid for and any excess returned to the person who put it up).

The funding of an after settlement escrow usually comes from the proceeds of the sale, so it can be used where there are no funds to take corrective action any other way. Even if the person responsible could get a loan for the purpose, the process could take too long to meet the settlement deadline. In that way, it can be a ?cash flow? solution, too.

No matter what problem you encounter, it?s usually possible for a willing seller and a willing buyer to work things out. Remember that all sorts of needs can be accommodated without anyone?s being a loser. Situations in which both buyer and seller are winners happen frequently. With any luck, that?s what will happen in your case. It just takes creativity and persistence.

 Raynor James is with http://www.fsboamerica.org - FSBO homes for sale by owner. Visit our "sell my home" page at http://www.fsboamerica.org/seller.cfm to sell your home yourself with a free 1 month listing.

Escrow Accounts Are You Paying Too Much?

Many people are paying more than they need to into their escrow accounts. A simple check of your own account can save you thousands in interest over the course of your loan.

Money in escrow is "dead money". It doesnt earn interest for you and it doesnt reduce your mortgage interest payments. Therefore every cent in your escrow account is costing you money. Make sure there is no more tied up in escrow than there needs to be!

Here is a brief summary of what lenders can and cannot do regarding escrow. I'll also explain how to check your own escrow account to make sure you are not paying too much.

State laws vary; you should consult your own attorney to determine what your local laws allow.

The way lenders handle escrow is regulated by the Federal Real Estate Settlement Procedures Act, which applies to all "federally related mortgage loans".

Unless local law says otherwise, at settlement the lender can require
a borrower to deposit funds in an escrow account set up for the payment of taxes or insurance premiums. The sum deposited cannot exceed the actual amount of the taxes and premiums, plus one-sixth of their estimated total.

If the taxes come due in January and you are settling in July, your first month's payment will be due Sept. 1. For September, October, November and December, you will make four months' escrow payments. Since the lender will require a full year's payment in January, and at that time only four months' payments will be in escrow, the lender can escrow eight months at settlement, plus one-sixth of the total amount, which amounts to an additional two months' worth of escrow.

Thus, at settlement, do not be surprised if the lender requires you to pay 10 months' tax payments into escrow. These funds are held by the lender and paid when the taxes come due.

The rules apply until you pay off your loan. In other words, the lender can hold two additional months' escrow, so that if you are delinquent in one or two monthly payments, the lender will still have sufficient funds.

At least once a year, the lender that services your loan must send you a statement clearly itemizing "the amount of the borrower's current monthly payment, the portion of the monthly payment being placed in the escrow account, the total amount paid into the escrow account during the period, the total amount paid out of the escrow account during the period for taxes, insurance premiums . . . (as separately identified) and the balance in the escrow account at the conclusion of the period."

When you receive this statement, you should review it carefully. Confirm with your taxing authority and your insurance company exactly when the payment is due and the amount of the payment. Use a calculator to determine whether the lender has properly calculated the amount of the escrow. Congressional testimony has uncovered many errors made by mortgage lenders.

There are also many cases in which lenders fail to pay the real estate tax on time - or at all. Often, the first time that homeowners learn of this non payment is when they receive a notice of tax sale from the jurisdiction where their property is located.

If you are required to escrow for taxes and insurance it is a very good idea to write to your lender annually, demanding proof of payment of the real estate taxes and insurance premiums. If the lender does not respond promptly, contact your taxing authority to confirm payment of the taxes, and complain about the lack of response to your state or local financial regulatory authority.

Home owners who have 20% or more equity in their property - that is, if they borrow or refinance 80% or less than the value of the property - have the right to receive a notice from the lender that they may pay their own taxes and insurance without escrow. This is a wise thing to do as your money is better off working for you than sitting in a non interest bearing escrow account. This is of course providing that you have the financial discipline to have the funds available when it comes time to pay your taxes and insurance!

WARNING: Some lenders try to increase the mortgage rate when the borrower opts to avoid escrow. You should talk to your attorney who will likely advise you it is illegal for the lender to do this. Again, MAKE THE EFFORT. It can be worth a great deal of money to you in the long term.

Unfortunately, escrow for taxes is a way of life in the mortgage industry. However, as a borrower, you have the right to review and analyze - and complain if you find that your escrowed funds are not being handled properly. After all, this money belongs to you until it is paid to the taxing authority or the insurance company.


You can easily check your own escrow account.

To determine whether your escrow account balance is excessive, divide all annual expenses paid out of that account by 12.

For example, if your annual expenses are $1,200, the lender would need $100 a month for payments.

If your monthly escrow payment is significantly higher than $100, the lender may be overcharging. Some lenders establish separate escrow accounts for each item to be paid, rather than making all payments out of the same fund. But regardless of the method used, at some point in the year, there should be no more than two times the monthly payment in the account (in the above example there should be no more than $200 in the account for at least one month of the year), or a smaller amount if the mortgage contract specifies one.

Should you find that you are being excessively charged you need to contact your lender for a satisfactory explanation because THIS IS COSTING YOU MONEY.

$500 in your escrow account is $500 that is not coming off your mortgage. You are paying interest on this which over the years can compound out to significant amounts of money. In fact over a 30 year loan at 8% this $500 will have cost you $5,431.92 in additional interest. Is that worth fighting for?

I encourage you to make the small effort required to monitor your accounts. Its so easy to be complacent and assume that all is as it should be. TAKE RESPONSIBILITY for your finances. When it comes to your money, you are the only person you can really trust.

For more information on bank overcharging visit me at www.BankSentinel.com

Yuri Szilasi is the owner of www.BankSentinel.coma site dedicated to recouping mortgage overcharges from lenders. Mortgage overcharges are endemic worldwide and cost Americans alone over $8 Billion each year

Life of an Escrow

Escrow is one of the last stages in the purchase or sale of a real property. When someone says that they are in escrow, it means that they have either accepted an offer on the sale of their property, or their offer to purchase has been accepted. The offer to purchase agreement is the instrument that is first signed by all parties before they go to escrow.

The life of a typical escrow in basic outline: Escrow instructions are prepared along with other pertinent documents, and signatures are obtained. Title search is ordered, a preliminary title report is received and sent out for review and approval by all parties. Demands for payoff are ordered on existing money liens, and clarification requested on tax liens and other liens. While the escrow officer is processing the file, the lender for the buyer is also processing the loan application. If the buyer is assuming the existing loan, the escrow officer requests a beneficiary statement , forwards to buyer for review and approval, and requests loan documents for transfer or for the new loan.

Once documents are received, the file is figured and reviewed to determine that all conditions have been met, and all documents have been properly prepared. Funds are obtained from the buyer, signatures on loan documents are obtained, loan funds are requested and received, and recording is ordered from title company.

There are, of course, many other occurrences in the life of an escrow, and each one is unique unto itself, because it involves totally unique circumstances and individuals.

. For any assistance in purchasing or selling, please feel free to contact me at 909-869-0259 or visit my website at www.nefcortez.com