How Does The Government Shut Down Affect Your Real Estate Closings?

Many do not realize that this shutdown will actually affect even the real estate closings.  Here is a great resource showing how it will affect any upcoming closings courtesy of Ameris Bank.

Due to the government shutdown, effective 8/30 at midnight, the following summarizes the expected impact on government services.  Ameris Bank’s standard policies and procedures remain in effect, subject to change as more information becomes available.

IRS Form 4506T & Tax Transcripts

Although services for tax transcripts through IRS are expected to be impacted, Ameris Bank will continue to require signed IRS Form 4506‐T and tax transcripts, as applicable. We cannot close a loan if we do not have the transcripts returned.

Social Security Administration

Verification of Social Security Numbers through the SSA may not be available.

FEMA Flood Insurance

It is anticipated that most functions will not be affected. However, mapping issues or amendments may be impacted.

FHA

FHA Connection is expected to be operational in order to obtain case numbers, perform CAIVRS checks, obtain insurance endorsements, and pay upfront MIP premiums.

Loans with a case file number, approved appraisal, clear CAIVRS and FHA approval (if test case) may close provided all other standard requirements are met.

Potential issues include:

·         System issues preventing case #s from being obtained

·         Support staff may not be available to assist with loan level issues

·         Uncertainty concerning loans submitted for a case number but placed “On Hold”

·         Uncertainty concerning the ability to obtain FHA Project Approval if project is not FHA approved

·         Uncertainty concerning the ability to have a case number transferred from another lender

VA

Loans with an approved appraisal and clear CAIVRS may close (provided all other standard requirements are also met).

The VA has issued the following statement: 

Impact: The VA Home Loan Guaranty Program will continue to operate as normal in the event of a Government shutdown.

Lenders and Servicers should continue normal activities which include, but are not limited to, the following:

·         Lenders should continue to submit funding fees through the VA Funding Fee Payment System;

·         Lenders can obtain their Loan Guaranty Certificates in the WebLGY system;

·         Lenders can continue to order and receive appraisals and issue Notices of Value;

·         Lenders and Veterans can continue to obtain a Certificate of Eligibility online through the appropriate systems; and

·         Servicers can continue to perform loan modifications, submit claims and receive claim payments, and convey properties to VA.

 

USDA

Loans with a USDA Conditional Commitment that does not contain provisional “subject to” language and with clear CAIVRS may close (provided all other standard requirements are also met).

Potential issues include:

·         May not be able to issue new commitments or Loan Note Guarantees

·         May not operate GUS

·         Support staff may not be available to assist with loan level issues

Courtesy of:

elden

Staging Your Home To Sell

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Why Use a Realtor?

Why  Use a REALTOR®?

 

All real estate licensees are not the  same. Only real estate licensees who are members of the NATIONAL ASSOCIATION  OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR  “®” logo on the business card or other marketing and sales literature. REALTORS®   are committed to treat all parties to a transaction honestly. REALTORS® subscribe  to a strict code of  ethics  and are expected to maintain a higher level of knowledge  of the process of buying and selling real estate. An independent survey reports  that 84% of home buyers would use the same REALTOR® again.

Real estate transactions involve one  of the biggest financial investments most people experience in their lifetime.  Transactions today usually exceed $100,000. If you had a $100,000 income tax  problem, would you attempt to deal with it without the help of a CPA? If you  had a $100,000 legal question, would you deal with it without the help of an  attorney? Considering the small upside cost and the large downside risk, it  would be foolish to consider a deal in real estate without the professional  assistance of a REALTOR®.

But if you’re still not convinced of  the value of a REALTOR®, here are a dozen more reasons to use one:

1. Your REALTOR® can help you determine  your buying power — that is, your financial reserves plus your borrowing  capacity. If you give a REALTOR®   some basic information about your available savings, income and current debt,  he or she can refer you to lenders best qualified to help you. Most lenders   — banks and mortgage companies — offer limited choices.

2. Your REALTOR® has many resources  to assist you in your home search. Sometimes the property you are seeking  is available but not actively advertised in the market, and it will take some  investigation by your agent to find all available properties.

3. Your REALTOR® can assist you  in the selection process by providing objective information about each property.   Agents who are REALTORS® have access to a variety of informational resources.  REALTORS® can provide local community information on utilities, zoning. schools,  etc. There are two things you’ll want to know. First, will the property provide  the environment I want for a home or investment? Second, will the property have  resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate.   There are myriad negotiating factors, including but not limited to price,  financing, terms, date of possession and often the inclusion or exclusion of  repairs and furnishings or equipment. The purchase agreement should provide  a period of time for you to complete appropriate inspections and investigations  of the property before you are bound to complete the purchase. Your agent can  advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR® provides due diligence  during the evaluation of the property. Depending on the area and property,  this could include inspections for termites, dry rot, asbestos, faulty structure,  roof condition, septic tank and well tests, just to name a few. Your REALTOR®   can assist you in finding qualified responsible professionals to do most of  these investigations and provide you with written reports. You will also want  to see a preliminary report on the title of the property. Title indicates ownership  of property and can be mired in confusing status of past owners or rights of  access. The title to most properties will have some limitations; for example,  easements (access rights) for utilities. Your REALTOR®, title company or attorney  can help you resolve issues that might cause problems at a later date.

6. Your REALTOR® can help you in  understanding different financing options and in identifying qualified lenders.  

7. Your REALTOR® can guide you through  the closing process and make sure everything flows together smoothly.  

8. When selling your home, your REALTOR®   can give you up-to-date information on what is happening in the marketplace  and the price, financing, terms and condition of competing properties. These  are key factors in getting your property sold at the best price, quickly and  with minimum hassle.

9. Your REALTOR® markets your property  to other real estate agents and the public. Often, your REALTOR® can recommend  repairs or cosmetic work that will significantly enhance the salability of your  property. Your REALTOR® markets your property to other real estate agents and  the public. In many markets across the country, over 50% of real estate sales  are cooperative sales; that is, a real estate agent other than yours brings  in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information  about your property to other real estate agents through a Multiple Listing Service  or other cooperative marketing networks, open houses for agents, etc. The REALTOR®   Code of Ethics  requires REALTORS® to utilize these cooperative relationships  when they benefit their clients.

10. Your REALTOR® will know when,  where and how to advertise your property. There is a misconception that  advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies  show that 82% of real estate sales are the result of agent contacts through  previous clients, referrals, friends, family and personal contacts. When  a property is marketed with the help of your REALTOR®, you do not have to allow  strangers into your home. Your REALTOR® will generally prescreen and accompany  qualified prospects through your property.

11. Your REALTOR® can help you objectively  evaluate every buyer’s proposal without compromising your marketing position.   This initial agreement is only the beginning of a process of appraisals,  inspections and financing — a lot of possible pitfalls. Your REALTOR® can help  you write a legally binding, win-win agreement that will be more likely to make  it through the process.

12. Your REALTOR® can help close  the sale of your home. Between the initial sales agreement and closing (or  settlement), questions may arise. For example, unexpected repairs are required  to obtain financing or a cloud in the title is discovered. The required paperwork  alone is overwhelming for most sellers. Your REALTOR® is the best person to  objectively help you resolve these issues and move the transaction to closing  (or settlement).

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