An existing lien that is being paid off or refinanced by our new loan will be listed under Existing Encumbrance. An encumbrance is a liability against, limitation on or a claim against a real estate property. An encumbrance can restrict the owner’s ability to transfer title to the property or lessen its value. It represents some right or claim of another to a portion of the property or to the use of the property. For example, a mortgage encumbers title to real estate because the lender has an interest in the property.
A deposit from the buyer/borrower and the payments which are made from this deposit will show up in the “Description” column as an “POC” item which means “paid outside of closing.”
The following items are likely to be listed in each of the following categories:
New Encumbrance: New AVANA lien that we are placing on property.
New Loan Charges: Packaging fee, appraisal report fees, ESA report fees etc.
Title Charges and Escrow Charges: Title search fee, title policy, date down draw endorsement fees, etc.
Recording Fees: Recording fees to record the trust deed or mortgage.
Additional Charges: UCC search fee, notary fees, etc.