Some of my standard closing table banter is chatting about paying down your mortgage WITHOUT using a bi-weekly payment plan. Why not? Well, as the article suggests, you typically are charged for that 'service' and at the end of the day you won't save as much interest over the life of the loan. In simple terms, most bi-weekly offers I've ever seen typically quote 5.5 to 6.5 years interest savings. If you paid ONE extra payment per year***, you'd save greater than SEVEN years worth of interest. Why choose a bi-weekly payment plan at all?
Click HERE for the article!
***As an example, if your principal and interest payment is $1200 per year, you would pay one extra payment towards principal per year OR pay an extra $100 monthly (principal/interest payment, divided by 12)
Showing posts with label lawyer. Show all posts
Showing posts with label lawyer. Show all posts
Wednesday, January 14, 2015
Wednesday, November 10, 2010
Real Estate Lawyers versus Witness Only closings
I couldn't write an article on this subject as clearly as this one, as it references a court case in Massachusetts. I applaud their efforts and I am hopeful that efforts to stop the same activities in Georgia will be successful in the future. Yes, I know this sounds incredibly 'protectionist' of me--it is. Yes, I want to ensure that as a closing attorney I have a job.
BUT in all honesty these witness-only firms are not held to the same standards as I am. I try to leave a title cleaner than I found it--I either fix a title issue (open loan deed, etc.) or have detailed notes to share with a future lawyer who finds an issue with my file. In essence, I care about the actual practice of law (and I truly feel that the closing process is a 'start to finish' proposal--not just sitting at the table with a blue pen and my notary stamp). For that matter, who is going to fix the title issue caused by some out of state company? When you go to sell your house you may find that your last closing created a huge error that will be costly to fix! I find issues all the time--even one refinance uncovered a situation where the gentleman actually owned NOTHING (a long story, but after a month or so I was able to fix the problem).
Final thought--witness-only closings (or closings handled by out of state companies, with or without a lawyer involved) are not always the cheapest option. Costs in Georgia are very competitive (at least in the ATL area). It may seem like a good deal to have a 'one-stop' shopping experience but after 15 years I have seen that you either 'get what you pay for' or you can also get screwed. Choose wisely--choose to close with a fully licensed real estate law practitioner.
BUT in all honesty these witness-only firms are not held to the same standards as I am. I try to leave a title cleaner than I found it--I either fix a title issue (open loan deed, etc.) or have detailed notes to share with a future lawyer who finds an issue with my file. In essence, I care about the actual practice of law (and I truly feel that the closing process is a 'start to finish' proposal--not just sitting at the table with a blue pen and my notary stamp). For that matter, who is going to fix the title issue caused by some out of state company? When you go to sell your house you may find that your last closing created a huge error that will be costly to fix! I find issues all the time--even one refinance uncovered a situation where the gentleman actually owned NOTHING (a long story, but after a month or so I was able to fix the problem).
Final thought--witness-only closings (or closings handled by out of state companies, with or without a lawyer involved) are not always the cheapest option. Costs in Georgia are very competitive (at least in the ATL area). It may seem like a good deal to have a 'one-stop' shopping experience but after 15 years I have seen that you either 'get what you pay for' or you can also get screwed. Choose wisely--choose to close with a fully licensed real estate law practitioner.
Friday, April 16, 2010
Autographs here!
It's always nice to see your name in print--well, let me edit that... It's always nice to see your name in print for a POSITIVE story! Read THIS ARTICLE from the AJC and hear a bit of positive news about Real Estate. Plus, it's great to have a comment from our own Jeff Harris included! Cheers! Bo
Monday, March 1, 2010
Mind your own business, Walter G. "Pete" Borden
Here's an article for you, from a guy that is trying to stop the installation of artificial turf on Cobb County football fields. I wrote this comment on a 'letter to the editor' on the Marietta Daily Journal website:
I voted FOR SPLOST. WHY? Because of each line item in the proposal. I CHOSE to vote for this as my kids are in Cobb County Schools and I wanted their equipment and schools to be upgraded. YES, that includes the football field at Sprayberry (my son) and Kell (when my daughter is older). If you were out there watching football you would have seen the dustbowl at Osbourne in 2008 when we played 'away'. In 2009, you would have seen the mud and puddles (and heard about games being cancelled due to water on the field, etc.). There is a high cost to maintain the fields and you cannot escape this fact. My yard? I don't spend a dime on it. Not important to me. As for the Mr. Borden, he doesn't even pay school taxes so where is his standing to sue? I read the proposal and voted FOR this money to be used. If you don't like it, don't vote for it. IT PASSED, get over it. Now our tax money is being wasted on thousands of dollars in legal fees (ask a litigator-the average price to bring a lawsuit to trial is over $5,000-$10,000. Could a teacher have used this money in the classroom?). Bottom line, after the laptop debacle, they clarified where every penny would go; that's why I voted for it (and why it passed, I guess?). To use a silly sports analogy, stop "Monday Morning Quarterbacking"!
In essence, this could delay the installation for Fall sports. Is this the most important issue in my life? NO. However, one guy is holding up everything and I hate it. I just wanted to vent; should you desire to get involved, call the Judge who will be presiding over the case: Judge Steven Schuster – He needs to know that the people of Cobb County voted for this and we expect him to honor that vote! Staff Attorney-Brittany Jones (770) 528-1851 Administrative Assistant-Janet Smith (770) 528-1849 Office Fax (770) 528-1854
I voted FOR SPLOST. WHY? Because of each line item in the proposal. I CHOSE to vote for this as my kids are in Cobb County Schools and I wanted their equipment and schools to be upgraded. YES, that includes the football field at Sprayberry (my son) and Kell (when my daughter is older). If you were out there watching football you would have seen the dustbowl at Osbourne in 2008 when we played 'away'. In 2009, you would have seen the mud and puddles (and heard about games being cancelled due to water on the field, etc.). There is a high cost to maintain the fields and you cannot escape this fact. My yard? I don't spend a dime on it. Not important to me. As for the Mr. Borden, he doesn't even pay school taxes so where is his standing to sue? I read the proposal and voted FOR this money to be used. If you don't like it, don't vote for it. IT PASSED, get over it. Now our tax money is being wasted on thousands of dollars in legal fees (ask a litigator-the average price to bring a lawsuit to trial is over $5,000-$10,000. Could a teacher have used this money in the classroom?). Bottom line, after the laptop debacle, they clarified where every penny would go; that's why I voted for it (and why it passed, I guess?). To use a silly sports analogy, stop "Monday Morning Quarterbacking"!
In essence, this could delay the installation for Fall sports. Is this the most important issue in my life? NO. However, one guy is holding up everything and I hate it. I just wanted to vent; should you desire to get involved, call the Judge who will be presiding over the case: Judge Steven Schuster – He needs to know that the people of Cobb County voted for this and we expect him to honor that vote! Staff Attorney-Brittany Jones (770) 528-1851 Administrative Assistant-Janet Smith (770) 528-1849 Office Fax (770) 528-1854
Wednesday, January 20, 2010
BoKnows?
I talked a bit about the new Good Faith Estimate and HUD-1 Settlement Statement for residential closings previously. Yes, it's official and any new loan 'started' in 2010 will have the new GFE and new HUD. Expect a lot of questions and confusion on this but as with anything new, 'this too shall pass'. What I want to talk about today is somewhat self-serving but very important for the future. Why is choosing an attorney important? For that matter, why is closing a loan with an attorney important? First off, it's not all about fees. Yes, I know how self-serving that statement is. When you look at a new GFE or HUD-1 you'll see all of our fees combined are almost $700 (without lender's title). I know one firm that will do all that for just shy of $300. They may be a great firm, but we never set out to build a high-volume closing firm. I've been there--the lobby full of people waiting to close, delays, tempers and it seems that customer service is tossed out the window. When we chose to open this firm in late 2008 we knew that's not what we wanted.
So our fees are about the same as most closing attorneys out there and we all have to quote the same title insurance rates as dictated by our title companies. If the playing field (e.g. 'fees') is level, more or less, why choose us? We are all veterans here. We can handle your first-time homebuyer's questions with ease (and patience!). We can handle "issues" at the closing table (we've all been there before) with tact and finesse (yes, even me!). For that matter, we don't let files 'lay around' until the day before closing so there really shouldn't be surprises on closing day. Come see us again and I know you'll be pleased. And remember not to think of us as 'just' an in-town firm--we can close all over metro ATL!
Final topic--why close with an attorney at all? This is less relevant for purchases but there are a lot of options out there for consumers. Many large national lenders use 'closing services' to close transactions and issue title insurance. Yes, I've closed loans in homes (even a Starbucks or two). However, there is a huge difference between us and these companies. We believe (as do most Georgia real estate attorneys) that a closing should be handled by the firm from start to finish. We run (and clean!) the title, close the loan, issue the title insurance and fund it through our IOLTA (trust account). This should be the bare minimum that a licensed Georgia attorney should do but some lenders insert themselves into the transaction. A witness-only attorney is just there to watch you sign documents--where are they when you have questions or issues after closing? An out of state 'title company' or 'escrow provider' won't help you clear up a messy title with open loan deeds--if you can even get someone on the phone or in the correct department! The bottom line? Even if you don't choose Harris Wagner Law Group, do yourself a favor and choose a licensed, LOCAL Georgia attorney to handle your transaction. You could even say the same thing about lenders and agents as well. Choose wisely as your home is the largest investment you own!
So our fees are about the same as most closing attorneys out there and we all have to quote the same title insurance rates as dictated by our title companies. If the playing field (e.g. 'fees') is level, more or less, why choose us? We are all veterans here. We can handle your first-time homebuyer's questions with ease (and patience!). We can handle "issues" at the closing table (we've all been there before) with tact and finesse (yes, even me!). For that matter, we don't let files 'lay around' until the day before closing so there really shouldn't be surprises on closing day. Come see us again and I know you'll be pleased. And remember not to think of us as 'just' an in-town firm--we can close all over metro ATL!
Final topic--why close with an attorney at all? This is less relevant for purchases but there are a lot of options out there for consumers. Many large national lenders use 'closing services' to close transactions and issue title insurance. Yes, I've closed loans in homes (even a Starbucks or two). However, there is a huge difference between us and these companies. We believe (as do most Georgia real estate attorneys) that a closing should be handled by the firm from start to finish. We run (and clean!) the title, close the loan, issue the title insurance and fund it through our IOLTA (trust account). This should be the bare minimum that a licensed Georgia attorney should do but some lenders insert themselves into the transaction. A witness-only attorney is just there to watch you sign documents--where are they when you have questions or issues after closing? An out of state 'title company' or 'escrow provider' won't help you clear up a messy title with open loan deeds--if you can even get someone on the phone or in the correct department! The bottom line? Even if you don't choose Harris Wagner Law Group, do yourself a favor and choose a licensed, LOCAL Georgia attorney to handle your transaction. You could even say the same thing about lenders and agents as well. Choose wisely as your home is the largest investment you own!
Thursday, November 19, 2009
RESPA changes to the GFE and HUD-1 begin January 1, 2010. Are you ready?
Are you ready for the $1,000.00 closing? Let me explain...
I have recently attended two seminars to learn about new RESPA rules taking affect January 1, 2010 as it relates to the new Good Faith Estimate (GFE) and the revised HUD-1 Settlement Statement. Be ready for some BIG changes! If this is news to you you may want to give me a call as you don't want to be caught off guard. The goal for the new GFE is to allow consumers to go shopping for the best deal on their loan. Likewise, they want consumers to be able to compare apples to apples (rates, lender fees, closing fees, state fees, etc.). Another goal is to ensure that the closing numbers (on the HUD-1) will match the GFE exactly. I have no issues with these goals; I have seen several 'surprises' at the table in my career and it is never fun for any of us--especially the borrower. Hopefully this will happen less often with these 'new and improved' (well, maybe?) disclosures.
As for the $1,000 closing comment, this speaks to line 1101 from the new HUD called "title services and lenders' title insurance". Translation: ALL of our closing fees will be lumped together. Take all of our standard purchase fees: $450 attorney fee, $125 title search, $50 title binder, $55 "Special Handling"/courier fee--add that together and you already have $680. Lender's title insurance is published by the title company as being $2.00 per $1,000 in loan value, so take a $100,000 loan and that $680 ends up being $880.00 for "attorney fees" which may create 'sticker shock' for your clients. For that matter, Owner's title insurance will be a separate line as well.
Please make note of those fees and that bottom line and compare it with other firms. We are proud of the lack of junk fees that many other firms charge over and above what is listed (no $25 wire fee, $25 tax search fee, $150 'doc prep' fee, etc.). I acknowledge that we are NOT the cheapest but I know that you won't find the same level of customer service elsewhere!
I have much more to say about this topic but I want to leave you with one more thought--IF your buyers or borrowers truly start shopping, I just want to pass along something that we've seen (remember-the law firm is the last person in the chain). Some lenders can quote a great deal--my question is "can they deliver?" I am a fan of free enterprise and low costs, but I want to be able to pick up the phone and talk to someone if I have a problem--it's no different with loans. You need to have someone you can reach as well as someone who can actually get us a package. CAVEAT: loans are no longer the 'Wild Wild West' but underwriting and/or appraisals can delay a closing--or kill it (thanks HVCC! Look for a posting on this and other reasons to contact your Congressman soon). Suffice it to say that it's not always your lender's fault; sometimes it's totally out of their control. With that being said, based on all the new disclosure requirements, choose wisely. Make sure you have a great team--lender, agent and (of course!) your closing attorney. Contact me anytime to chat about this or any other issues you may face. Thanks for your business, your interest and your friendship! See you soon!
I have recently attended two seminars to learn about new RESPA rules taking affect January 1, 2010 as it relates to the new Good Faith Estimate (GFE) and the revised HUD-1 Settlement Statement. Be ready for some BIG changes! If this is news to you you may want to give me a call as you don't want to be caught off guard. The goal for the new GFE is to allow consumers to go shopping for the best deal on their loan. Likewise, they want consumers to be able to compare apples to apples (rates, lender fees, closing fees, state fees, etc.). Another goal is to ensure that the closing numbers (on the HUD-1) will match the GFE exactly. I have no issues with these goals; I have seen several 'surprises' at the table in my career and it is never fun for any of us--especially the borrower. Hopefully this will happen less often with these 'new and improved' (well, maybe?) disclosures.
As for the $1,000 closing comment, this speaks to line 1101 from the new HUD called "title services and lenders' title insurance". Translation: ALL of our closing fees will be lumped together. Take all of our standard purchase fees: $450 attorney fee, $125 title search, $50 title binder, $55 "Special Handling"/courier fee--add that together and you already have $680. Lender's title insurance is published by the title company as being $2.00 per $1,000 in loan value, so take a $100,000 loan and that $680 ends up being $880.00 for "attorney fees" which may create 'sticker shock' for your clients. For that matter, Owner's title insurance will be a separate line as well.
Please make note of those fees and that bottom line and compare it with other firms. We are proud of the lack of junk fees that many other firms charge over and above what is listed (no $25 wire fee, $25 tax search fee, $150 'doc prep' fee, etc.). I acknowledge that we are NOT the cheapest but I know that you won't find the same level of customer service elsewhere!
I have much more to say about this topic but I want to leave you with one more thought--IF your buyers or borrowers truly start shopping, I just want to pass along something that we've seen (remember-the law firm is the last person in the chain). Some lenders can quote a great deal--my question is "can they deliver?" I am a fan of free enterprise and low costs, but I want to be able to pick up the phone and talk to someone if I have a problem--it's no different with loans. You need to have someone you can reach as well as someone who can actually get us a package. CAVEAT: loans are no longer the 'Wild Wild West' but underwriting and/or appraisals can delay a closing--or kill it (thanks HVCC! Look for a posting on this and other reasons to contact your Congressman soon). Suffice it to say that it's not always your lender's fault; sometimes it's totally out of their control. With that being said, based on all the new disclosure requirements, choose wisely. Make sure you have a great team--lender, agent and (of course!) your closing attorney. Contact me anytime to chat about this or any other issues you may face. Thanks for your business, your interest and your friendship! See you soon!
Subscribe to:
Posts (Atom)
