As we all get ready for Turkey overload, I'd like to welcome you back!
Selling a home? If so, do you savor the day it sells? Is the thought of the sale going through as juicy a thought as the Turkey gravy dancing through your head? Not so fast. "Reaching an agreement doesn't mean your home is as good as sold", writes Margarette Burnette for the HSH.com website article, "4 weird closing glitches (and how to avoid them)".
The Glitches that Burnette writes about are:
3 Renters in residence
4 Parties don't have enough money for closing
* Bonus from my own personal experience - "In writing" !
Liens, says Cynthia Jones, a real estate attorney with Horack, Talley, Pharr & Lowndes, P.A., a law firm in Charlotte, N.C., are "any unpaid bills you have from delinquent property taxes, homeowners association dues or even past remodeling work", in comments appearing in Burnette's article. For any such liens, Jones suggests that you can "try to work out an agreement with" the party you owe money to", i.e., a payoff.
As for our wood-chewing nemesis, termites, Barry Hildebrandt, broker/owner of WCI Real Estate in Riverside, Calif, says that "Many home sale contracts are drafted with contingencies that allow the buyer to inspect the home before going through with the sale". What should you do? Make sure you inspect and clear out the little buggers in advance!
If you have people residing in/renting your property, you will want them out by the Closing, and Jones suggests that you, "make sure your lease agreement provides enough time for your tenants to move before you close on the property and hand the keys over to your buyers".
The next potential glitch can hit either the buyer, the seller, or both parties. Burnette suggests that buyers should still be "preapproved for their loans in order to help make the process go more smoothly", and warns that if the buyers have not "properly calculated how much they'll need to bring to closing", they could fall very short and it could impact completion of the deal, thus, the Closing.
If sellers are underwater on their mortgage, says Jones. they may have trouble coming up with the funds to pay off their own loan at closing, however, she suggests that in order avoid such issues, make sure that both parties have a "clear understanding" of the amount of money that needs to change hands at the closing. Sound Advice.
Here's my bonus tip, prefaced with a little story. When we purchased our home, we were quoted an interest rate 1/4 point below what the Closing papers said. You may scoff at a 1/4 point, but on $400,000, that's big money! To top it off, our mortgage guy was on vacation for the closing. I was able to have his secretary patch me through to him from the closing table, and I shed a piece of my mind on him. Short of delaying the closing (and delaying our movers, etc), we agreed on a compensation to us which turned out to be quite fair. Long story short; get everything in writing before the closing!
Did we miss anything?
May you have a blessed and joyous Thanksgiving, and I continue to be thankful for my family, friends, and the joy of writing these posts for your enjoyment. We will not be posting Friday, however, will be back with you during the following week.
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Have a Great Week, and Happy Rent-to-Owning !
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TAGS: #closing #lien #termite #renter #realestateattorney #homeownersassociationdues #propertytaxes #payoff #underwater #mortgage #interestrate