An escrow period is when the ownership of the newly purchased home has not been transferred to you yet. The period starts after you make the down payment for your property, as agreed upon by both you and the seller. During the escrow period, the third party company, which has collected your down payment, coordinates the conditions of the agreement. It means that you would have to perform timely duties like transferring the required amount of funds, presenting and signing documents, paying all bills, conducting inspections, and completing other related processes.
The escrow period may last between thirty to forty five days, after which you may legally take possession of your home. It will give you plenty of time to get your loan approved, while simultaneously deciding whether it is a good idea to continue with the purchase. However, during this time, you may not be able move into your new home, as the formalities may have not been completed. At the same time, both you and the seller will have to be available to perform your respective duties, so traveling is not much of an option too.
It may prove to be a huge problem for home buyers though as some of them may not have a place to stay during the escrow period. Some buyers choose to enter into an agreement with the sellers to move into the house as tenants during this period. However, such agreements are usually tricky, as they involve a lot of legal issues, which can add more responsibilities on the part of the buyer. Also, if due to some reason, the escrow does not close, the buyer may be evicted, leaving him/her with no place to stay.
If your house is in escrow, you may consider one of the following temporary housing alternatives.
Stay at a hotel
- Pros: The facilities provided in a hotel can make your stay comfortable, depending upon the kind of hotel. You will get timely breakfast, room service and access to certain indoor as well as outdoor facilities offered by the hotel. Another huge plus point is that you will not have to take care of your room. Your kitchens, bathrooms and bedrooms will be cleaned and maintained without you having to take any effort.
- Cons: The price of staying in hotels is generally much steeper than any other alternative. You may have to live with just a limited amount of supplies that you may be carrying with yourself.
Stay with a friend
- Pros: The cost is not as high as the price you would pay while staying in a hotel. You may have to pay a part of your friend’s rent. A major benefit is having good company, which ensures that you do not need to adjust much.
- Cons: A good friend may not be a good roommate. It may be difficult to confront your friend about his or her habits during your stay. It can strain your relationship and hamper your bond with them.
Move in with family
- Pros: You can save the money, which you would have otherwise spent on rent. Also, as you will be staying with your family, they may take care of most of your needs. It could become a great opportunity to spend quality time with your family members.
- Cons: When sharing the space with parents, siblings or other family members, there is a huge possibility of confrontations and conflicts regarding past issues. Also, there are chances that you may lose a lot of your privacy. It could lead to resentment, which can be detrimental to all people involved.
Rent a house
- Pros: Renting a house holds the landlords responsible with the repairs and maintenance of utilities as well as appliances.
- Cons: Having a bad landlord is a possibility, which can make the entire stay a bad experience. You would have to deal with limited personalization and the behavior of your neighbors. The biggest disadvantage to this option would be the possibility of being locked into a lease that exceeds the time you need, such as a 1-year lease.
A considerable alternative
For many people whose houses are in escrow, a good housing alternative is to live in a pre-furnished apartment, such as those offered by Foxwood Corporate Apartments. These apartments offer comfortable temporary housing with flexible plans allowing month-to-month rentals. As the apartments are pre-furnished, you would not need to invest in bedsheets, dishes and other such essentials, but you will still have a place you can call you own.