Closing
How To Read The HUD-1
Starting January 1st, 2010, all real estate transactions will be settled using a new HUD-1. The HUD-1 is a standardized form which allows real estate buyers and sellers to clearly understand the costs of their transaction.
The original HUD-1 was developed as a by-product of the Real Estate Settlement and Procedures Act of 1974 — or, [...]
New Pro-Borrower Mortgage Rules Set For July 30th
It will be a new deal for real estate borrowers as of July 30th. That’s the day when new standards developed under the
Housing and Economic Recovery ACT (HERA) go into effect.
Okay, so what’s the big deal?
In basic terms, the rule says that if you apply for a loan on July 30th or thereafter the [...]
Can 11,000 Appraisers Be Wrong?
Gee, golly, mention the idea of pressuring appraisers to come up with the “right” valuation numbers and you’re hardly alone. There seem to be a large number of appraisers who have encountered efforts to distort their valuations. Say 11,000 of them.
That’s how many signed on at AppraisersPetition.com. And what, exactly, is their beef? As the [...]
New Appraisal Code Should Help Homebuyers
Freddie Mac and Fannie Mae’s new Home Valuation Code of Conduct went into effect as of May 1st, a document which is important to buyers, sellers and lenders.
For a number of years appraisers have reported pressured to meet certain price points when evaluating a home, pressure placed on them by lenders and loan officers who [...]
Do We Have To Make The Last Mortgage Payment When Refinancing?
The closing agent will check with your current lender prior to settlement to get a pay-off for the existing loan. If you have a payment due on the first of the month some will tell you it should be paid.
Others in the lender community argue that it’s okay to bring the last payment to closing [...]
What If I Don’t Sign The Lender’s Form?
Question: When applying for a mortgage we were asked to sign a form which would allow the lender to check past tax returns. This doesn’t seem right. What happens if we don’t sign?
Answer: Most probably you have been asked to sign IRS Form 4506. This form authorizes the IRS to provide tax returns for selected [...]
How Can We Delay Closing?
Question: We’ve sold our home and are soon going to closing. However, because we have been unable to find a suitable replacement property we want to delay settlement while the buyers want to close on schedule. How can we delay closing?
Answer: Imagine if closing is delayed by a month. Imagine also that the purchasers have [...]
Why is it necessary to survey a home each time it is sold?
A survey is very important. It shows the amount of property purchased, the location of improvements on the lot (such as the house), and the location of the lot itself.
A new survey is needed each time a property is sold not because a house might move, but because of encroachments, easements, and such. [...]
Can I do my own title search?
You can certainly go through public records to look up the history of property ownership for a given parcel.
But, you cannot do you own title search as part of the loan process. Lenders and title insurance companies want qualified, third-parties to review records to assure that all information regarding the property — such as [...]
What is title insurance?
Every property has a history of ownership outlined among local public records. When a property is sold, this history is reviewed to assure that the current seller has title and the right to sell the property.
The catch is that property records may not record all possible title defects or claims. For instance, a prior [...]
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