Provided By Julie Lane, VP of Legal and Compliance
Source Keller Williams Blog
Come January 1, 2010, the new and improved Real Estate Settlement Procedures Act of 1974 (RESPA) will be fully en force. Considering this is the first sweeping change in the home buying process since 1974, it is worthy of our full attention. The new RESPA means more than new forms-it means major changes in the way real estate closings happen.
The key motive of RESPA’s new rules is to make sure consumers understand loan costs and binding parameters before singing the closing statements.
With mountains of paperwork at the closing table, there is little chance that borrowers are going to spend the many hours necessary to wade through the documents. What’s more, borrowers, especially would-be first-time homeowners, may be intimidated by the process and miss the opportunity to seek competing settlement services that could save them money.
As a real estate broker, here’s what you need to know: the new rules may impact your ability to refer business to title companies, inspectors and others you typically work with as part of the sales process. RESPA wants to make it easier for borrowers to shop for the lowest-cost, most convenient closing services by mandating borrowers receive a written list of settlement service providers. That comprehensive list includes closers, appraisers, real estate brokers, title examiners, attorneys, underwriters, pest inspectors, mortgage insurers, loan processors and other settlement service providers.
Since borrowers will receive a laundry list of competing settlement service providers, they may be inclined to shop around for the best price, even if it only means saving a couple of hundred dollars.
This is the crux of the matter as it relates to real estate practices and comes in the wake of industry abuses. Some in the real estate industry have received kickbacks for referring consumers to mortgage brokers, appraisers and other professionals along the road to homeownership. In some cases, those referrals may not have been in the best interest of the homeowner based on price or serviced provided. In other cases, the real estate agency owned the title firm or the appraisal firm at non-competitive prices.
As we move into 2010, be aware of how you might violate RESPA to avoid any issues. The chief concern is giving the appearance of kickbacks, whether in the form of money, ownership interest, marketing help or other arrangements. There is a fine line between collaboration and violation of RESPA and it can be a complicated issue.
The good news is, HUD announced that that it will be lenient in the first 120 days of enforcement of the new RESPA regulations going into effect January 1, 2010 so long as good faith efforts are made to comply. Still, in order to avoid any confusion, you should consult with an attorney about full compliance with the rules.
Thursday, April 15, 2010
Tuesday, April 13, 2010
Increase Your Distressed Properties Pipeline
Provided By Keller Williams Realty
Source Winning With Foreclosures
Short sales and foreclosures represent more than 40 percent of all home purchase transactions in the United States. For buyers looking to leverage current market opportunities, that’s a large pool of untapped homes.
The “Winning with Foreclosures” Seminar, PowerPoint and additional resources, is an opportunity to educate buyers on the benefits of buying a short sale or foreclosed property while positioning yourself as a local expert in this field.
Teach It:
The main tool in this kit is the PowerPoint presentation for your workshop session. In field tests, and at Family Reunion, the presentation took about 30-45 minutes to deliver. The presentation covers:
> Definitions – Basic definitions of key terms buyers will hear and need to understand.
> Benefits – The top three distressed property purchase benefits for buyers.
> Action steps – Five key steps that can lead buyers to a successful short sale or REO purchase.
> Rules of the Road – Rules of the road in buying—underscoring a number of key differences between traditional real estate purchases and short sale or REO purchases.
> Market Realities – How to seize the buying opportunity by understanding six key realities driving distressed property markets.
> Myths and Truths – Key myths about distressed properties—and the truths about these myths.
> Checklist – A short checklist buyers can use to tell they are ready to move ahead with finding and buying a distressed property.
> The presentation is designed to position you as the local expert in this field – and to involve participants in the workshop.
In addition to the PowerPoint Presentation, the following resources are also available to help you promote your “Winning with Foreclosures” Seminar:
> Flier you can customize to promote “Winning with Foreclosures” sessions you hold.
> Email header you can include in any email invitations or follow ups you send out about the workshop.
> 16-page attendee handout, filled with illustrations, headlines and bullet points designed to: 1. remind attendees what they heard in your workshop, and 2. prompt follow up with you about the possibility of buying.
Source Winning With Foreclosures
Short sales and foreclosures represent more than 40 percent of all home purchase transactions in the United States. For buyers looking to leverage current market opportunities, that’s a large pool of untapped homes.
The “Winning with Foreclosures” Seminar, PowerPoint and additional resources, is an opportunity to educate buyers on the benefits of buying a short sale or foreclosed property while positioning yourself as a local expert in this field.
Teach It:
The main tool in this kit is the PowerPoint presentation for your workshop session. In field tests, and at Family Reunion, the presentation took about 30-45 minutes to deliver. The presentation covers:
> Definitions – Basic definitions of key terms buyers will hear and need to understand.
> Benefits – The top three distressed property purchase benefits for buyers.
> Action steps – Five key steps that can lead buyers to a successful short sale or REO purchase.
> Rules of the Road – Rules of the road in buying—underscoring a number of key differences between traditional real estate purchases and short sale or REO purchases.
> Market Realities – How to seize the buying opportunity by understanding six key realities driving distressed property markets.
> Myths and Truths – Key myths about distressed properties—and the truths about these myths.
> Checklist – A short checklist buyers can use to tell they are ready to move ahead with finding and buying a distressed property.
> The presentation is designed to position you as the local expert in this field – and to involve participants in the workshop.
In addition to the PowerPoint Presentation, the following resources are also available to help you promote your “Winning with Foreclosures” Seminar:
> Flier you can customize to promote “Winning with Foreclosures” sessions you hold.
> Email header you can include in any email invitations or follow ups you send out about the workshop.
> 16-page attendee handout, filled with illustrations, headlines and bullet points designed to: 1. remind attendees what they heard in your workshop, and 2. prompt follow up with you about the possibility of buying.
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