"You've Caught the NET!"

head_left_image

FOR HOME SELLERS AND BUYERS, NEW SETTLEMENT RULES COULD DELAY REAL ESTATE CLOSINGS!

NEW REAL ESTATE SETTLEMENT RULES - PRE-CLOSING REVIEW OF CLOSING COSTS MADE MORE DIFFICULT FOR REAL ESTATE BROKERS REPRESENTING SELLERS, BUYERS!

For our Clients here in Chicago and Nearby, our Team routinely verifies our Client’s Closing Documents prior to the closing of their transaction to make sure the Closing Cost Items are calculated properly – and not too high!  With the changes to Real Estate Settlement Procedures last year under new TRID (TILA-RESPA Integrated Disclosure) Rules, some Lenders, Title Companies, and Settlement Agents will not forward final Closing Disclosures to Brokers here.

Indeed, such a change could potentially delay closings – any calculation errors in Fees, Broker’s Commission, Tax Proration, and Seller Concessions must be corrected and a three business days’ waiting period must be given to Buyer for review before a transaction now can close.  In some cases, when a closing is delayed, upset Sellers have refused to extend the closing date, potentially derailing the transaction.

As Real Estate Writer Kenneth R. Harney outlines in the Chicago Tribune,  underolder HUD rules, Buyers, Sellers, and their Lawyers would receive a Closing Statement for a Sale or Purchase several days before closing, with enough time to review and correct errors.  Now, lenders, often located hundreds of miles away from the transaction and unfamiliar with local fees and tax pro-ration customs, do not allow enough time and an easier opportunity for this critical review.

These miscalculations or inaccuracies might be easily spotted by an experienced Real Estate Broker or Attorney, but often missed by an unskilled Buyer or Seller.  If errors are not caught until closing, they cannot be corrected on the spot.  Instead, they must be re-submitted to the lender for correction, and a new three-day mandatory document review and waiting period would apply.

The obvious solution is for a Buyer or Seller to immediately share the Closing Disclosure and Master Closing Statement with their Real Estate Broker as soon as they receive it.  Hopefully, in this manner, there is enough time to check and correct any errors without a delay in closing.   On several occasions, since the beginning of the new Settlement Rules last October, our Team and Attorneys have caught errors quickly, and corrected them so no closing delays occur.

As we all know, especially as you prepare for an important Real Estate Closing, and Extra Professional to Review makes all the difference!

Got Questions?  Just Contact Us by Message or Phone!

DEAN MOSS & DEAN’S TEAM CHICAGO  

Comment balloon 1 commentDean Moss • March 13 2016 02:37PM
FOR HOME SELLERS AND BUYERS, NEW SETTLEMENT RULES COULD DELAY REAL…
share
NEW REAL ESTATE SETTLEMENT RULES - PRE-CLOSING REVIEW OF CLOSING COSTS MADE MORE DIFFICULT FOR REAL ESTATE BROKERS REPRESENTING SELLERS, BUYERS! For our Clients here in Chicago and Nearby, our Team routinely verifies our Client’s Closing Documents… more
Condo Owners - How to Avoid Special Assessments!
share
It's Human Nature - for Condo Owners! Everyone wants to keep their Monthly Homeowner's Assessments as Low as Possible. However, keeping the Owners' Assessments TOO LOW might result in an Under-Funding Situation especially in the event of an… more
CHICAGO FORECLOSURES FALL - But Housing Recovery Here Not Complete!
share
In what many experts consider a clear signal that the Housing Market in Chicago may be making a comeback, Bank-Owned Foreclosed Homes as a percentage of all homes on the resale market here, fell by 27% in 2013, versus 2012. At the end of… more
WATER IN THE BASEMENT - Always a Deal Killer?
share
Greetings, from (finally) Springlike Chicago IL! In mid-April, an unusually-heavy, widespread rain dumped six or more inches of rain on Chicago and many suburbs. Many homeowners endured devastating flooding - 12 inches or more water rising in… more
CHICAGO REAL ESTATE MARKET RECOVERY? INDEED IT'S A MIXED BAG!
share
Scan your favorite Real Estate Blog or National News Sites on the Internet these days, and you'll often see story after story about how the Real Estate Market is recovering across the USA. Average Homes Prices are up! Units Sold are up! Mortgage… more
Rent-to-Own - A Good Option? Maybe Maybe Not!
share
Here in many of the North Side of Chicago Neighborhoods our Team works extensively, good housing deals abound. Most Chicago Home Sellers are getting used to the new reality of lower market prices on their homes, while others must sell due to their… more
"Generation NOW? " Well, Maybe NOT YET!
share
Retail Industry Specialists, including Maxine Lauer of Sphere Trending in MI, refer to the 15-34-year-old-set as "Generation Now. " Perhaps you are intimately acquainted with the prevailing attitude of many younger consumers: "… more
THE LIMBO OF THOSE ENDURING DELAYED FORECLOSURES
share
Under "normal circumstances, " IL Foreclosures take about nine months to one year to run their course - from the first court filing of mortgage delinquency, until the homeowner if finally evicted and forced to leave their home. For many… more
POOR PROSPECTS FOR NEAR-TERM HOUSING MARKET TURNAROUND? SELLERS TO…
share
Have you read all the news? The U. S. Economy is improving. Indicators are positive. Unemployment Rates both across the U. S. and here in Chicago are down. Optimism is building. So why is the Housing Market in Chicago still floundering… more
AFRAID? VERY AFRAID? FEAR STILL PARALYZING MANY HOME BUYERS!
share
Hope you enjoyed the weekend, folks! Nice, but a bit cool and breezy, here in Chicago. Here in the Chicago Real Estate Market Dean's Team works most frequently prospective home buyers calling from all sources - referrals, property ads, and… more