Our lives will be changing

By
Real Estate Broker/Owner with Real Estate Partners, LLC B 21410

As I understand,the new rules for closings, that were supposed to take effect Aug. 1st, 2015, have been postponed a couple of months. No matter, it's coming. The days of 30 day closings will be over. It will be 60 days, if we're lucky. The closing settlement statement will be simpler, but that's where the good news ends. Pre-qual letters from lenders will be worthless. ( They already are from some lenders). The information on the pre- quail will only be what the potential buyer supplies. If they leave out something, it won't close. They must be pre- approved, which means the info has been verified. The lender can only do this after the potential buyer has signed a series of disclosures and has an address for the prospective property.

     Now, for us new construction folks, there is an added problem. The buyer must sign off on inspection and punch list items 6 days before closing. This gives them 6 days to pick the house apart again, and, if they do, the six days starts over again. A nightmare!

   Long story short:  when the government sticks it's nose into any business, they will screw it up.this is no different. The theory is good, but, in practice, it's a bad idea.

    Why does it take anybody with more than a third grade education 6 days to review a settlement statement? The potential buyer is under contract to purchase the property. They chose their lender. If the lender has put some stuff in there that costs more money than anticipated, why should the seller suffer?

    Many buyers will not understand why they are paying so much interest over 30 years. Guess what? You probably won't be there in 30 years, since the average person moves about every 5.2 years.if you are a 70 year old buyer, what do you care about what a 30 year mortgage will cost over time?

     Thanks again for reading my rants. Steve Houck

Posted by

The Judy Wahba Team at Real Estate Partners, LLC

Judy Wahba - Broker/Owner

Steve Houck - REALTOR-Partner
"The Judy Wahba Team"
Real Estate Partners, LLC

Business: 601-942-2683
Fax: 601-956-7618
E-mail: steve@stevehouck.com

Judy Wahba's QR Code

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Rainer
501,666
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

Total agreement......Thanks for agreeing with me.

Jun 18, 2015 12:47 PM #1
Rainmaker
212,530
Stefan Winter
Real Estate in IL & NV | Owner of Real Estate Web Tech | Daily Vlogger - Las Vegas, NV
Owner - Winter Group & Real Estate Web Tech

Agreed, anything the government touches is bad, but us professionals or common people can't do anything about it. 

We will see what happens, but I am sure it will be a disaster. Time to find more cash buyers!

Jun 18, 2015 12:51 PM #2
Rainmaker
3,983,819
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

There will be a lot of closing running late and buyers having to come up with a lot of cash because of it...or even having to cancel out.

Jun 18, 2015 12:55 PM #3
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Cash sales will be the only quick escrows. If the home owner hasn't sold in five years, chances are they've probably refinanced, and start the 30 years over again. 

Jun 18, 2015 02:31 PM #4
Rainmaker
2,802,205
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Adaptability is the key to all survival they say, and they're right about all of it.

Jun 18, 2015 02:38 PM #5
Rainmaker
2,802,205
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

The day I can pay in cash is a good day for me on any day, but I see what you're saying fully. Pamela Seley, REALTOR®

Jun 18, 2015 02:40 PM #6
Rainmaker
2,802,205
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

It does look like the rest of you are very willing to adapt and that's a great thing in my view of the grand scheme.

Jun 18, 2015 04:21 PM #7
Rainmaker
2,802,205
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I gave you a follow because I think your post will get more interesting as stuff like this progresses

Jun 18, 2015 04:23 PM #8
Ambassador
2,909,510
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

not sure where you are getting some of your information.  It's three days.  And I like it.  I hate when closing statements are being prepared the day of closing.  That's crap. Buyers should have to time to review. 

And I think I'll still be having 30 day closings.  My lenders have been having their package out a week in advance for months now in preperation of this change ahead.  

Jun 18, 2015 04:32 PM #9
Ambassador
928,968
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Truth be told - this is a really big change and whether August 1st or October 1st - it is going to complicate things unbelievably. Good points to bring up here.

Sincerely,
Lynn

Jun 18, 2015 04:59 PM #10
Ambassador
920,457
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

I agree with you What A Mess. Understand I'm not oppose to change. This change did not have the Realtor in mind. Where is the NAR? They just got involve in January best I can tell. To late to the the party. Think of this one, With the new privacy portion, The Realtor will no longer receive a copy of the closing disclosure. How can we accurately place information in the MLS without a official copy of the closing. Wheres the NAR?

Jun 18, 2015 08:18 PM #11
Ambassador
920,457
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

For clarification:

Loan Estimate (LE) 

Replace the GFE and the initial Truth in Lending

Consumers within 3 business Days after submission of loan application must recieve

Provides summary of Key Loan terms/estimate of loan/closing cost

Provide by lender

Delivery of Closing Disclosure

Closing Disclosure (CD) must also be delivered or placed in the mail no later than the 7th business day before consummation of the transaction. From here you can schedule consummation. 

Jun 18, 2015 08:36 PM #12
Rainer
545,494
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

True statement:

when the government sticks it's nose into any business, they will screw it up.this is no different. The theory is good, but, in practice, it's a bad idea.

Jun 18, 2015 09:03 PM #13
Rainer
214,057
Richard Burge Realty/ Burge Homes
Richard Burge Realty/Burge Homes - Conway, SC
Broker in Charge/Owner

I have not seen a 30 day loan closing in the last 3 years.  It is nothing new for the loan to take 45 days plus extensions and 60 days is the new normal anyway.  Banks are not the publics friend anymore and there is no such thing as your friendly local bank.  Money Money Money is all they know...

Jun 18, 2015 09:40 PM #14
Rainer
164,141
Steve Houck
Real Estate Partners, LLC - Madison, MS

From what I understand, the seller and Realtor will get a settlement statement to review. It won't be the true closing disclosure, as that will be in a portal. The only way that we can access the real one is that our buyer clients share it with us

Jun 18, 2015 11:01 PM #15
Rainmaker
403,895
Katina Hargrove 352-551-0308
Stake Your Land Realty, Inc. - Eustis, FL
Broker/Owner, GRI,SFR, REALTOR®

Judy Wahba,

Change can be hard, it is just how fast you want to adjust. I went to a class on Tuesday which was very educational. 60 days closings will be a norm, I do not know how is it going to affect short sales.

Jun 19, 2015 12:29 AM #16
Rainmaker
680,030
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Thirty day closings are pretty standard here in the Arizona market so with the new rule changes it's being estimated that it will add an additional 2 weeks to the closing process. A 45 day close is manageable but if it stretches out to a 60 day close then I think it will cause a lot of problems. 

Jun 19, 2015 01:30 AM #17
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