What document does the escrow agent request from the lender for a property purchased subject to an existing mortgage?

The escrow agent requests a beneficiary statement from the lender for a property purchased subject to an existing mortgage because this document contains important information regarding the current status of the mortgage. The beneficiary statement provides key details such as the remaining balance on the loan, payment history, any outstanding charges, and the terms of the existing mortgage. This information is critical for the buyer to understand their obligations regarding the mortgage and also helps the escrow agent ensure that all financial responsibilities are properly managed during the transaction.

In transactions involving a property with an existing mortgage, understanding the terms and conditions set forth by the lender is vital. The beneficiary statement gives transparency regarding what the buyer is taking on as part of the purchase and helps facilitate a smoother escrow process by preventing surprises related to the existing mortgage.

While a title insurance policy, loan application, and closing disclosure are important documents in real estate transactions, they do not provide the specific information needed about the existing mortgage that the beneficiary statement does. The title insurance policy protects against past title issues, the loan application is a request for a new loan, and the closing disclosure provides details about the terms of the new loan and closing costs. However, none of these documents directly address the buyer's responsibilities concerning the existing mortgage.