Frequently Asked Questions

Have questions about how our services work? You’re not alone—we’ve answered the most common ones right here. Whether you're a buyer, seller, or agent, this guide will walk you through the basics.
Common Questions

Get Answers of Common Questions

Yes, ESI is licensed by the Louisiana OFI, the same regulatory body that regulates banks and savings & loans. ESI is fully bonded and meets all regulatory bonding requirements.

ESI services land contracts, leases, and lease purchases in all 50 states.

ESI services Bond for Deed contracts only in Louisiana. and private mortgages in Louisiana and Texas.

ESI will service installment option contracts in some states, but not all. Please inquire for more information.

No. There are numerous advantages to both Purchaser and Seller in a Bond for Deed versus a lease-purchase including:

  • Lease payments are not tax deductible; interest paid on a Bond for Deed is tax deductible by the purchaser
  • Equity appreciation for the Purchaser
  • Elimination of costs and headaches of being a landlord for the Seller, such as payment of taxes and insurance, maintenance and upkeep
  • Significantly improved ability for Purchaser to qualify for a conventional mortgage to acquire title and pay Seller in full
  • Material investment by Purchaser in the form of a cash down payment versus a rental deposit
  • Ensuring clear title at time of title transfer

Yes, please inquire for more information on your specific circumstances.

As a general rule, no. Please inquire for more information.

Under a Bond for Deed in Louisiana:

  • If there is a mortgage on the property it's the law!
  • As a seller, you're required to keep a full accounting of all payments, be able to quote accurate payoffs to lenders, and report 1098 interest to the IRS.
  • When a buyer refinances, mortgage underwriters want to see payment to an independent third party (not the Seller) as evidence of timely payment.

Under a private mortgage:

  • Maintain proper accounting of all transactions
  • Provide required IRS reporting
  • Escrow for taxes and insurance
  • ACH draft borrowers for timely payment

A Bond for Deed is a contract utilized strictly within the state of Louisiana that is governed by the Louisiana Bond for Deed statutes. An Installment Option is a contract generally used outside of the state of Louisiana, contractually containing provisions that are provided for statutorily in the Bond for Deed contract.

It is utilized in Louisiana in unique circumstances where the parties do not wish to use a Bond for Deed or Lease Purchase.

In private mortgages, Bond for Deeds, and Installment Option contracts, taxes and insurance are typically the responsibility of the Purchaser.

In a private mortgage, Purchaser should obtain their own insurance and name Seller as additional insured, or mortgagee.

In a Bond for Deed or Installment Option there are varying insurance options. Please inquire for information specific to your circumstances.

Contact Escrow Services, Inc. at 985-626-3727 or service@EscroServ.com to discuss your specific circumstances.

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