Tech Talk on Legal Billing Software, Trust Accounting Software, Divorce Financials Software, HUD Settlement Statement, Case Information Statement and Family Law Software

Real Estate Short Sale Success

Real Estate Short Sale Success

In the current economic climate and distressed housing market, real estate shorts sales have become increasingly common. The primary short sale strategy gives the seller an exit strategy to get out from under a mortgage he can’t afford. Nonetheless, the lender and the buyer can also benefit. The lender gets rid of a bad loan and the possible added expense of foreclosure action and the buyer gets a home at a reduced price.

One caveat, whether you are the seller or the buyer in a short sale deal, choose your real estate agent carefully. Be sure the realtor has experience with short sales and understands all aspects of the strategy. While time is of the essence in most short sale situations, a good real estate agent will take the time to conduct a market analysis, explain the short sale process, prepare the paperwork the lender requires, conduct negotiations and follow through with you and the lender.

For the seller, the realtor’s research is crucial to gather accurate information and prepare a preliminary HUD statement to use as a tool to negotiate with the lender. And, for the buyer, thorough market research will help you and your realtor assess home prices and arrive at a fair offer that the lender is likely to accept and that factors in the repairs and improvements the home will need.

An effective short sale realtor can prepare the Seller’s hardship letter, preliminary HUD statement and documentation and purchase contract to assure the lender that he will get paid. With an accurate preliminary HUD statement in hand, the realtor is in a better position to convince the lender to accept a discount on the money the seller owes on his mortgage and ensure that the seller doesn’t end up owing money at the closing.

A knowledgeable realtor who works closely with you and the lender to keep the sale process on track and makes sure the deal goes through is the key to successful short sales.

Realtors who want to succeed at the short sale process rely on Easy Soft for short sale and real estate closing software.

New VA Loan Origination Charge Itemization – Whose Job is it?

New VA Loan Origination Charge Itemization – Whose Job is it?

Real estate attorneys and settlement agents have had nearly six months to get used to the 2010 Real Estate Settlement and Procedures Act (“RESPA”) rule. And now, there are more changes, if you are dealing with VA guaranteed home loans. As of May 1, 2010, the Department of Veterans Affairs (VA) issued new loan documentation requirements for lenders in response to the RESPA Rule.

VA Circular 26-10-01 specifies that lenders must either itemize their VA loan origination and other fees on the empty 800 lines to the left of the column in the HUD-1 statement or, if the information does not fit in the space provided, the lender must prepare a separate “Origination Statement.”

Although the VA Circular indicates that lenders are to prepare the Origination Statement, we’ve learned from conversations with customers that many lenders are asking settlement agents to prepare the form themselves.

Easy Soft to the Rescue!

Even if you find that a lender expects you to prepare VA loan closing itemization and origination statements, our real estate closing software, Easy HUD has got you covered.

For more information on the new VA guaranteed loan requirements, click here.

 

 

 

 

 

 

Real Estate Settlement Agents – The Right Software Can Boost Profits

Real Estate Settlement Agents – The Right Software Can Boost Profits

Technology is a real boon to fixed price legal services. A perfect example is the real estate closing process, which typically requires a set of sequential tasks.

Easy Soft, a leading provider of real estate closing software and services, recently, launched a dedicated real estate closing software website: ( http://www.realestate-legal.com ). The site’s main focus is to illustrate how software can not only simplify the real estate closing process, but also increase efficiency and boost profitability.

With the right software, you can coordinate the repetitive closing tasks, from document preparation and closing disbursements to 1099-S reporting and client trust accounting.

On our real estate closing software website, you’ll find tips for software evaluation, focusing on key aspects like HUD settlement statements, integrated document assembly and accounting.

Visit http://www.realestate-legal.com and find out how to make better use of your existing closing system or how to select a software program that is most appropriate for your firm.

Tricky RESPA Question

Tricky RESPA Question

I came across a somewhat tricky question today and thought it will be good to get your input as well on this.

Question: What happens if the lender’s GFE is missing a required service item (e.g. flood insurance) and how is it handled in HUD closing statement?

Answers: Hmmmmm. I don’t recall seeing specific guidance from HUD on this in their rulebook or FAQ. I can’t be 100% sure because my full time job is not to read tons of documents HUD has been publishing on RESPA rules.

However, based on the intent of the RESPA rules, here is what I think a missing service item should be handled:

-> First, be sure that it is a required service. It may not be a required service from the lender’s perspective and in that case, it would be entered in section 1300 of HUD-1, with the “included” checkbox OFF. The optional service will then be not part of the GFE-HUD comparison sheet to begin with.

-> If the item truly is a required service, can the GFE be revised, since the lender “missed it?” The answer would be a loud “NO,” unless it became required due to another “changed circumstance.” For example, if issues discovered while doing a preliminary title search required additional services to be obtained, that would be a case of “changed circumstance” resulting in new GFE. New GFE can then incorporate this additional charge resulted due to changed circumstances.

-> If the above cases do not apply, below are steps to prepare your HUD.

List the service item charge in Section 1100 (if the provider is chosen by the lender) or section 1300 (if provider selection was optional) with the “included” checkbox ON. In the GFE-Comparison sheet, if the item was entered in 1100, it will automatically go to Bucket-2. If item was entered in 1300, you will need to select 10% limit as no provider was specified for the required service by the lender (remember, it is missing in GFE). On the comparison sheet, in either of these cases, the GFE amount would be entered as 0 and the charge will be compared in Bucket-2. Bucket-2 now has higher chances of exceeding the allowed 10% limit, but since the lender omitted a required service, thus providing “wrong” GFE, these steps should be an appropriate method consistent with new RESPA Rule intent.

I have outlined this and many other such tricky questions on our “own” RESPA FAQ.

Please let me know your thoughts in the comments section below.

Five Steps to Automate Real Estate Closings

Five Steps to Automate Real Estate Closings

At Easy Soft, we field several hundred calls each week from settlement agents pertaining to various aspects of real estate closings and HUD settlement statement preparation, using our Easy HUD software. Needless to say, our technical support calls have quadrupled since the 2010 RESPA Rule went into effect. Generally, we ask a series of questions to understand and visualize a customer’s setup before answering questions that allow us to provide specific answers.

In the course of business, I have also come to realize that real estate legal professionals and their practices are in crying need of automation. Whenever I get the opportunity, I joke with customers that real estate lawyers are often their own worst enemy because they have figured out how to complete a task in 20-minutes that should take two minutes.

Now it would be one thing if real estate was an hourly practice. As with every joke, there is some element of truth. With added RESPA complexities, it has never been a better time for real estate lawyers to focus on efficiency and automation of repetitive tasks.

Recently, I outlined specific guidelines for our customers to automate real estate closings and illustrate how they can save up to 70% of real estate closing preparation time in five easy steps. Not only can you save time, but you will also improve accuracy and boost real estate practice profits.

Click here to learn these five easy steps which can transform your real estate closing practice.

Please let me know your thoughts in the comments section below.