For several years, I have been using a County specific and VA Military Home Buyers Guide to provide to my clients. It has been a great way to obtain leads from craigslist and backpage and to use as handouts at open houses.
I have decided to co-brand this item with local area real estate agents wanting to network to increase leads and build upon client relationships. I have produced these guides:
King
Pierce
Snohomish
North Puget Sound
Olympic Penninsula
SW Washington
Kitsap
Thurston
Tri-Cities
Spokane
Additionally, I have Western WA Military Installations and JBLM specific.
Rates are great right now, the market is rich with houses at great prices, and buyers can get good loans. This is one of the best times for buying I have seen since I started in this business in 1987. If you are serious about finding a new way to reach buyers, let's talk! Call me at (253) 536-5626; ext.304 or email me at gwsmith@lendscape.com and let me know your thoughts.
Showing posts with label realtors. Show all posts
Showing posts with label realtors. Show all posts
Friday, August 19, 2011
Friday, September 25, 2009
Seller Mandated Use of Title Company
Many have expressed concern regarding the steering of title companies by sellers of residential property. This includes many REO companies. See below the actual rule from RESPA Section 9.
RESPA: SECTION 9 - WHY WAS I REQUIRED TO BUY TITLE INSURANCE FROM A SPECIFIC TITLE COMPANY BY SELLER?
The Real Estate Settlement Procedures Act's (RESPA) Section 9 (12 U.S.C. §2608) and Regulation X (§ 3500.16) prohibits, either directly or indirectly, a seller from requiring a purchaser to buy title insurance from a specific title company in any transaction as a condition of the sale.
Section 9 of RESPA (12 U.S.C. §2608) states that:
1. No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company.
2. Any seller who violates the provisions of subsection (a) of this section shall be liable to the buyer in an amount equal to three times all charges made for such title insurance.
The only way a Seller can mandate that purchaser use a particular title company is if the seller paid 100% of all title insurance and related title costs. HUD's RESPA Division has stated on numerous occasions that unless the seller pays 100% of the title related costs then the seller has violated RESPA. REO companies need to pay particular attention to Section 9 because required use practices by REO companies are on the HUD's radar right now.
Lately, many builders and REO sellers (banks) have been steering and mandating the use of their preferred title companies in their addendums. Unless they pay for it, it is a clear violation of RESPA.
Additionally, there are several local real estate purchase agreements that are in use in parts of the United States where the language in the purchase contract states that Seller picks the title company but purchaser pays for title costs. It should be clearly noted that you can not contract out of a RESPA Section 9 violation. Just because the purchase agreement is signed by the borrower doesn't prohibit the borrower from coming back and suing the seller for required use if the borrower is stuck with any of the title related fees.
Another clever technique that is in use is where the seller (quite often found in builder addendums) says they will pay for the owner's title insurance policy but that purchaser has to pay for the lender's title insurance policy and all other costs. This does not pass the smell test nor does it pass HUD's smell test. The practice while novel in its approach is still considered a Section 9 violation.
Many borrowers still do not understand that they are allowed by law to use any title insurance company they want to and if the seller dictates that they must use the sellers preferred title company, it is in violation unless seller is going to pay all costs for title insurance.
Finally, with the rapid approach of the new good faith estimate that has tolerance limits, sellers and real estate agents should be aware that the buyer is going to see the difference in title and escrow charges that the loan officer originally quotes and any variance in actual costs of the agent or seller directed title and escrow company. When forced to pay more, is the buyer going to be happy with your choice? I would encourage all agents to consider learning about the new good faith and HUD-1 Settlement statement coming out January 1, 2010. Education on how it is going to affect your transaction could mean the difference between a happy buyer and a disgruntled one.
I would be happy to schedule a meeting with agents to go over the new rules. Just call my office at (253) 536-5626 or email me.
RESPA: SECTION 9 - WHY WAS I REQUIRED TO BUY TITLE INSURANCE FROM A SPECIFIC TITLE COMPANY BY SELLER?
The Real Estate Settlement Procedures Act's (RESPA) Section 9 (12 U.S.C. §2608) and Regulation X (§ 3500.16) prohibits, either directly or indirectly, a seller from requiring a purchaser to buy title insurance from a specific title company in any transaction as a condition of the sale.
Section 9 of RESPA (12 U.S.C. §2608) states that:
1. No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company.
2. Any seller who violates the provisions of subsection (a) of this section shall be liable to the buyer in an amount equal to three times all charges made for such title insurance.
The only way a Seller can mandate that purchaser use a particular title company is if the seller paid 100% of all title insurance and related title costs. HUD's RESPA Division has stated on numerous occasions that unless the seller pays 100% of the title related costs then the seller has violated RESPA. REO companies need to pay particular attention to Section 9 because required use practices by REO companies are on the HUD's radar right now.
Lately, many builders and REO sellers (banks) have been steering and mandating the use of their preferred title companies in their addendums. Unless they pay for it, it is a clear violation of RESPA.
Additionally, there are several local real estate purchase agreements that are in use in parts of the United States where the language in the purchase contract states that Seller picks the title company but purchaser pays for title costs. It should be clearly noted that you can not contract out of a RESPA Section 9 violation. Just because the purchase agreement is signed by the borrower doesn't prohibit the borrower from coming back and suing the seller for required use if the borrower is stuck with any of the title related fees.
Another clever technique that is in use is where the seller (quite often found in builder addendums) says they will pay for the owner's title insurance policy but that purchaser has to pay for the lender's title insurance policy and all other costs. This does not pass the smell test nor does it pass HUD's smell test. The practice while novel in its approach is still considered a Section 9 violation.
Many borrowers still do not understand that they are allowed by law to use any title insurance company they want to and if the seller dictates that they must use the sellers preferred title company, it is in violation unless seller is going to pay all costs for title insurance.
Finally, with the rapid approach of the new good faith estimate that has tolerance limits, sellers and real estate agents should be aware that the buyer is going to see the difference in title and escrow charges that the loan officer originally quotes and any variance in actual costs of the agent or seller directed title and escrow company. When forced to pay more, is the buyer going to be happy with your choice? I would encourage all agents to consider learning about the new good faith and HUD-1 Settlement statement coming out January 1, 2010. Education on how it is going to affect your transaction could mean the difference between a happy buyer and a disgruntled one.
I would be happy to schedule a meeting with agents to go over the new rules. Just call my office at (253) 536-5626 or email me.
Tuesday, November 4, 2008
USRD to Adjust Income Limits
Effective January 20, 2009, an income limit modification will allow easier qualification for buyers using 100% USRD loan. Previously, income limits were based upon family size from 1-8 with each size based upon 115% of median family income. Although that is not changing, we will move to a 2 tier system using the income for a family of 4 for family size 1-4, and income limits for a family of 8 for sizes 5-8. Family household larger than 8 will have an additional 8% per individual added to the 8 person income limit.
This is definately going to help individual and married couples with family sizes less than 4 or between 5-8, qualify for homes easier. To give an example using current income guidelines: a family size of 1 was limited in income to a maximum of $53,250. Using the new guideline, that individual could not qualify for a 100% USRD loan having a maximum income of $76,100.
Of course, at this point, we do not know what the 2009 median incomes figures will be, but should they stay the same, our new system for maximum income limits will be:
Family Size 1-4 = $76,100
Family Size 5-8 = $100,450
Since this loan is one of the only loans available for non-veterans wanting 100% financing, this should be a great loan to use. Make sure your listings are advertising for 100% if located in an eligible area. Maps are available. Email info@mortgageinwashington.com for any Washington county you need a map for. We will be hosting seminars about USRD before the year end. Watch this blog for details.
This is definately going to help individual and married couples with family sizes less than 4 or between 5-8, qualify for homes easier. To give an example using current income guidelines: a family size of 1 was limited in income to a maximum of $53,250. Using the new guideline, that individual could not qualify for a 100% USRD loan having a maximum income of $76,100.
Of course, at this point, we do not know what the 2009 median incomes figures will be, but should they stay the same, our new system for maximum income limits will be:
Family Size 1-4 = $76,100
Family Size 5-8 = $100,450
Since this loan is one of the only loans available for non-veterans wanting 100% financing, this should be a great loan to use. Make sure your listings are advertising for 100% if located in an eligible area. Maps are available. Email info@mortgageinwashington.com for any Washington county you need a map for. We will be hosting seminars about USRD before the year end. Watch this blog for details.
Thursday, October 23, 2008
Welcome!
Hi,
You have been reading and hearing about it for months. Blogging is THE new way to increase your internet exposure. Since you are viewing this, I assume you sell real estate for a living. You have chosen to make this a career. How are you doing? Are you thriving? Well, no matter whether you are an old pro or a fresh new rookie, our goal is to provide marketing ideas that you can fit right into your existing marketing to enhance and hopefully increase your lead conversion (MAKE YOU MORE MONEY). This blog will continue to keep you informed as new marketing ideas come up and educated about changing loan programs and mortgage guidelines.
Visit http://www.AgentSignIn.com for FREE agent websites and to learn about how to get your listings greater exposure on the internet using individual websites.
You have been reading and hearing about it for months. Blogging is THE new way to increase your internet exposure. Since you are viewing this, I assume you sell real estate for a living. You have chosen to make this a career. How are you doing? Are you thriving? Well, no matter whether you are an old pro or a fresh new rookie, our goal is to provide marketing ideas that you can fit right into your existing marketing to enhance and hopefully increase your lead conversion (MAKE YOU MORE MONEY). This blog will continue to keep you informed as new marketing ideas come up and educated about changing loan programs and mortgage guidelines.
Visit http://www.AgentSignIn.com for FREE agent websites and to learn about how to get your listings greater exposure on the internet using individual websites.
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