I get the appeal of credit unions, but I’ve actually seen fewer hiccups when buyers use independent escrow services. Banks and credit unions have their own protocols, sure, but independent escrow companies tend to specialize in just this part of the process—less chance of someone misplacing a form or insisting on a specific ink color. There’s still paperwork (always), but at least you’re not stuck in a call queue if something goes sideways. Just my two cents from the trenches...
Title: Escrow accounts—better through banks or independent services?
I hear you on the paperwork headaches. I’ve been through both routes—banks/credit unions and independent escrow companies—and honestly, I lean toward independents these days, too. There was this one deal a couple years back where the buyer’s credit union insisted on mailing physical documents back and forth (like, actual snail mail), and it dragged the closing out by almost two weeks. Meanwhile, the independent escrow folks I’ve used lately are all about e-signatures and quick responses. If something’s missing, they just ping you directly instead of bouncing you between departments.
That said, I’ve had a few smooth transactions with bank-run escrows, especially when everything’s pretty vanilla—no weird contingencies or out-of-state parties. Sometimes the bigger institutions have more robust fraud protection, which can be reassuring if you’re dealing with large sums or a complicated title situation. But yeah, the trade-off is usually slower communication and more red tape.
One thing I’d flag: in some markets, the choice isn’t always up to the buyer or seller. Local customs or agent preferences can steer you toward one or the other. I’ve even seen agents push for their “preferred” escrow company, which isn’t always in your best interest. Worth double-checking who’s actually handling your funds.
At the end of the day, I’d rather have someone who does nothing but escrow all day handling my deal than a bank employee juggling mortgages, car loans, and checking accounts. Less chance of something slipping through the cracks. But hey, if you’ve got a relationship with a bank that actually picks up the phone and knows what they’re doing, that’s gold too... just not as common as I’d like.
Funny how something as boring as escrow can make or break a deal.
