September 4, 2015
Franklin real estate game changer
30 Day real estate closings are about to be a thing of the past.
Yes – that’s right, our friends at the Federal Government passed the Dodd-Frank Wall Street Reform and Consumer Protection Act on 7/21/2010 (often just known as Dodd-Frank) and over 5 years later the changes that were, “urgently needed” are finally being implemented.
Pardon my dripping sarcasm here, but when Government gets involved in consumer processes to “streamline” and “simplify” them, I find that things are neither streamlined nor simplified (and this is another classic example).
It all comes down to closing the transaction.
In the real estate world of today lenders are **supposed** to have the HUD1 or settlement statement prepared 24 hours PRIOR to closing so that the consumer can review. Under the new rules coming into force October 3rd this time period is a compulsory 3 days prior to closing. If I suggest to you that most lenders don’t get settlement statements finalized and approved to meet the current 1 day lead time, how on earth will they ever do it in a 3 day period?
Why does it matter? You can close today if you get your settlement statement today, yes this is very true, but not after October 3rd. If October 5th is your closing date and you get the new “Closing Disclosure” on October 5th – you are not closing until October 8th. Imagine what this does to the people who are selling you their house and using the proceeds to buy another house (who can no longer close either now) and the people they are buying their house from who are using their proceeds to buy another house ad naseum? The dominoes stop falling and there are some very emotional and angry home buyers and sellers out there looking for answers.
So how can we do our best to prevent these kinds of issues?
30 day closings will simply no longer be feasible, in fact 45 days will be pushing it until everyone decides how this system can work best. This means if you’re considering buying a home in Franklin in December you really need to be under contract in very early October.
Of course I’m going to shamelessly plug my real estate services – I have years of experience in anticipating problems before they happen and taking the extra steps necessary to keep both your home purchase on track and the purchaser of your home on the same timeline. October won’t be easy but with the right/slower approach we can still have a successful purchase or sales process.
I’m always ready to assist you with your Franklin, TN home buying or selling needs. I have over 14 years experience and a group of clients who consistently feel like I treated them as I would family. I can always be reached at 615 579-7909 via Facebook and of course Email.