Advice on Financing Escrow Deposit Requirements?

[Aaron Moye]

Hi BP family!

I just went under contract on a property in Cleveland Heights. We were notified that prior to the transfer of title, we will need to establish an escrow account with funds equal to 125% of the estimated cost of repairs of the code violations we are assuming. 

I was wondering if you all had any advice/experience with this so that we can avoid coming out of pocket for this? 

Appreciate any and all feedback, thanks!!

[Nicholas Misch]

Quote from @Aaron Moye:

Hi BP family!

I just went under contract on a property in Cleveland Heights. We were notified that prior to the transfer of title, we will need to establish an escrow account with funds equal to 125% of the estimated cost of repairs of the code violations we are assuming. 

I was wondering if you all had any advice/experience with this so that we can avoid coming out of pocket for this? 

Appreciate any and all feedback, thanks!!

Congratulations on getting a property under contract!

I am very surprised whoever helped you purchase didn’t let you know. The POS is part of the sale and or listing and is mandatory to transfer title. You have to put the money aside. There is no way around it. You will then have to show all completed repairs to get your money back (or Cleveland Heights will let you take draws as work is completed). I am sorry if i am the first one telling you things as really I shouldn’t be. 

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