Preclosing Methodology.


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Second/subordinate liens for home value advances. Credit suppositions if terms are adjusted or > ... A home sold on July 18. The following home loan installment date is August 1. The purchaser is ...
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Slide 1

Preclosing Procedures Buyer\'s Issues Title confirmation Seller\'s deed Removal of liens and encumbrances Survey Inspection comes about Leases Seller\'s Issues Payment Buyer financing Compliance © De Vee E. Dykstra, J.D. 2006

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Seller Deposits Deed Title Evidence Hazard Insurance Policies Estoppel Certificate Reduction testament Other reports Buyer Deposits Balance of money required Mortgage archives Hazard protection Other records Escrow Closing © De Vee E. Dykstra, J.D. 2006

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RESPA Timely revelation of shutting costs Prohibits kickbacks and referral expenses where no administration gave Applies to Lenders financing buy of borrower\'s living arrangement Second/subordinate liens for home value advances Loan suspicions if terms are altered or > $50 charged Disclosure necessities HUD data booklet Good confidence assessment of shutting costs given to purchaser Uniform Settlement Statement © De Vee E. Dykstra, J.D. 2006

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Closing Terminology Arrears = cost acquired now, yet paid later (accumulated things) Prepaid things = those things officially paid, however benefits not yet got Debit = charge, sum a gathering owes and pays at shutting Credit = sum that is as of now been paid and is to be repaid to a gathering Proration = isolating things between the vender & purchaser E.g., land charges, rents, utilities, expected home loan interest, and so on © De Vee E. Dykstra, J.D. 2006

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Settlement Process Identify Selling Terms and Closing Costs Determine Non-Prorated Items Determine Prorated Items and Calculate Items paid ahead of time Items paid falling behind financially Complete Settlement Statement Disburse Funds Record Documents © De Vee E. Dykstra, J.D. 2006

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Prorated Items paid/got ahead of time E.g., danger and surge protection, rent stores, fuel oil Seller paid, then purchaser gets charge and merchant gets credit Seller got ahead of time, then Buyer gets credit and vender gets charge Items paid falling behind financially E.g., RE charges, service charges, enthusiasm on expected home loan Buyer gets credit and dealer gets charge © De Vee E. Dykstra, J.D. 2006

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Math Problem At what cost should a house offer if Seller is to get $30,000 subsequent to paying $1,500 in settlement and the specialist\'s bonus is 6%? © De Vee E. Dykstra, J.D. 2006

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Proration Problem A home sold on July 18. The following home loan installment date is August 1. The purchaser is accepting dealer\'s 6% advance which has a $36,800 parity starting July 1. Allocate the interest. © De Vee E. Dykstra, J.D. 2006

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Another Problem The assessment year is Jan. 1 – Dec. 31. Duties are $1,440 and haven\'t been paid for the year. Shutting is Dec. 10. Who owes what to whom in S.D.? © De Vee E. Dykstra, J.D. 2006

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