Craig’s Blog

TOP 10 THINGS NEVER TO SAY OR DO IN A REAL ESTATE CLOSING

Posted: 11 Aug 2010 05:00 PM PDT

I’m often asked by real estate professionals for a list of common mistakes made by closers. So I’ve assembled a list of the top ten mistakes in no particular order. Some of the items on the list seem minor but pack a powerful (and expensive) punch. The list is below but is sort of a tease and I’ll write about each of these items over the next couple months. They’ll be posted right here at knightbarry.com.

Have you made any of these mistakes? Do you have anything to share? If so, post a comment below. You can do it anonymously if you wish. Some of these are things you should never do; some are things you should never say.

1. "First, let’s take the property out of the trust and close this loan. Then you can transfer the property back to your trust."

2. "To whom would you like us to cut these checks? And who should we hand them to?"

3. "I have a contact at the lender’s office who can give me a quick verbal payoff."

4. "It takes us several days to process these documents after closing. THEN we will forward the to the title company for recording. "

5. "I’m not a lawyer but I know exactly who should sign this document."

6. "Mrs. Buyer, the deed shows you and your husband taking title as ‘husband and wife.’ Should we add ‘survivorship marital property’ to that too?"

7. "Sure, we can accept the buyer’s funds in the form of a check from any title company or any lawyer’s trust account."

8. "The water test shows clear. Let’s close!"

9. "We work with this builder all the time. We’ve never had a problem. They do good work."

10. "There should be enough money in this escrow to pay for the work."

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Posted via email from Title Insurance
Continuing Ed for Title Agents

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just another scheme to enrich Wall Street

August 12, 2010 admin

For Immediate Release

American Land Title Association Applauds FHFA for Proposal to Protect Consumers from Dangerous Financial Scheme

Washington, D.C., Aug. 12, 2010 — The American Land Title Association (ALTA) congratulates the Federal Housing Finance Agency and Acting Director Edward J. DeMarco for taking a stand against the use of Wall Street Home Resale Fees, also known as private transfer fees, which steal equity from consumers, force homeowners to pay a large fee to sell their homes and adds a complicated legal roadblock to the home sale process.

“We applaud the FHFA for recognizing the growing concern surrounding private transfer fees and the threat they pose to consumers, as well as the negative impact they would have on Fannie Mae, Freddie Mac and Federal Home Loan Bank mortgage purchases,” said Kurt Pfotenhauer, chief executive officer of ALTA. “The FHFA made an important decision to protect the future health of the real estate market by providing guidance that Fannie Mae and Freddie Mac will not offer loans on properties with these dangerous fees attached to them.”

Developers, in consultation with Wall Street advisers, are attempting to add language to home purchase contracts requiring that a percentage of the sales price be paid to the original corporate owner of a property every time the property is sold, typically for 99 years. The right to collect these Wall Street Home Resale Fees would then be securitized and sold to enrich investors, while stealing equity from homeowners.

“This is a just another scheme to enrich Wall Street and third parties at the expense of Main Street and consumers,” Pfotenhauer said.

This new, controversial financial scheme is facing opposition across the country. At the state level, 18 states already enacted bans or restrictions against the use of this dangerous fee, which steals home equity, lowers home resale values and adds another layer of difficulty to selling a home. The FHA has already stated PTFs violate the U.S. Department of Housing and Urban Development’s regulations prohibiting legal restrictions on conveyance and requiring lenders to convey clear marketable title.

“These fees provide no service or benefit to homeowners, and raise the costs of homeownership,” Pfotenhauer said. “The FHFA recognizes they are simply designed to generate additional revenue for investors at the expense of consumers. Again, we thank DeMarco and the FHFA for taking time to examine and understand this issue and for taking steps to squash a reckless financial scheme before it creates disastrous results.”

Art Oswald

Learntitle.com, LLC 551 404 5341

The richest man is not the one with the most stuff – it is the one with a satisfied mind.

Posted via email from Title Insurance
Continuing Ed for Title Agents

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VA RESPA Guidance Issued | Mortgage Help Info

August 5, 2010 admin

The U.S. Department of Veterans Affairs issued guidance long-awaited by the mortgage industry regarding the disclosure of fees, particularly fees that may not be charged to the borrower, with a VA guaranteed loan in view of the revised approach to disclosing fees under the Real Estate Settlement Procedures Act.

The VA advises that lenders must comply with the RESPA requirements regarding the completion of the good faith estimate and HUD-1 settlement statement.

via mortgagehelpinfo.com

Posted via email from Title Insurance
Continuing Ed for Title Agents