DON'T GET CAUGHT HANGIN UPSIDE DOWN ON 01-01-10!
Westhaven in Franklin, TN new construction and re-sale Lenders face new RESPA Guidelines along with all Lenders and Title Companies nationwide. RESPA (Real Estate Settlement and Procedures Act) representative visited Keller Williams Franklin and explained new federal lending guidelines and the possible affect they could have on sellers and buyers.
As of January 1, 2010, all Lender GFE (Good Faith Estimates) and Title Company HUD Settlement Statements changes will go into effect. According to RESPA representatives, the most obvious change to the seller or buyer is the need of a delayed closing by a few days while lenders and title companies adhere to meet strict regulations
This realtor's advice:
- Work with your lender when choosing a closing date-have your realtor pick-up the phone and call the lender when scheduling date and time-don't just assume your lender has an open calendar, especially if it's on a Friday or toward the end of the month.
- When scheduling your moving date, be prepared to give yourself, your lender, and your title company and most of all, your moving company a few days lead way if the closing doesn't take place on the scheduled date.
- Be patient with your buyer, his realtor and lender if they need a few extra days to close.
- Know the new regulations are across the board and affect all lenders including those involved with new construction.
- Being flexible allows all concerned to and know everyone is after the same results.
- Work with a realtor who is educated and on top of new RESPA changes
Simultaneous Closing Headaches:
Simultaneous closings are more common today as the market demands a seller close on his home before he can purchase another. The following are my 5 Buyer B's when working with a simultaneous closing:
- Be realistic-Set your possession date a few days out instead of ‘at close of escrow' just in case seller's closing does not close on schedule. Please, don't have the moving van loaded and parked out front waiting with baited breath for the key.
- Be Wise-know up front that the seller may need a few extra days to finalize the closing on his next home and have your realtor work with the listing agent to clarify the seller's needs up front and ask seller's to stipulate in writing with the contract any special requests
- Be Gracious-know that your seller may need to exercise their ‘lease back option' until the closing on their new home is finalized. Give your seller time to move their possessions out of the home and thoroughly clean.
- Be Clear: Establish up front a Lease-back document allowing for a few extra days, if needed. For instance: a rate of $50/day may be established for the first two days, $100 for the next week. I usually set a final date of possession for seven days after closing date. Remember, they are equally as anxious to move into their new home. *Make sure the sellers acquire renters insurance on their possessions as your home owners policy will not cover their things.
- Be Flexible and know, everyone is after the same results. Whether you're buying or selling, moving locally or across the country, patience, kindness, and flexibility allows for a rewarding and exciting experience for all involved.
Heath Albritton from Starkey Mortgage @ www.HeathAlbritton.com and Dawn Chase from Foundation Title & Escrow @ www.foundationtande.com are available to answer any questions you might have. ‘Tell em I sent ya!'
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