Loan Fraud
Even with tightening lending guidelines, loan fraud continues to be a problem in this real estate market! We’ve all heard the stories about predatory lending; buyers falsifying loan applications; sellers and agents withholding information about actual defects in the property; kickbacks, etc. As your agent, it is my job to coach you through the transaction and if something fraudulent comes up during the course of a real estate transaction, I will point it out to you.
Recently I attended a class taught by Oliver Frascona, a local real estate attorney, who presented 4 simple rules that buyers, sellers, lenders, closing companies and agents need to follow to reduce and hopefully eliminate fraud in real estate transactions. Basically, all agreements between buyer and seller need to be written in the Contract to Buy and Sell Real Estate, which will be seen by the lender, and everything is reflected on the HUD-1 Settlement Statement.
Oliver’s 4 rules:
1. The Real Entire Deal…
2. that’s in the contract…
3. that goes to the lender,
4. and it’s on the HUD-1 Settlement statement
For more tips on how to avoid loan fraud, click here to read HUD’s tips “Don’t be a Victim of Loan Fraud.”
Oliver Frascona is a shareholder in the law firm of Frascona, Joiner, Goodman and Greenstein, P.C., 1974 - Present. Clients include first and second mortgage lenders (banks, savings and loans, mortgage companies), hundreds of real estate brokers and salespersons, real estate companies, developers, property management companies, builders, subcontractors, suppliers, buyers and sellers, and he represents eighteen Colorado Associations of REALTORS®.
Title Insurance: What you need to know
It is tradition for sellers in the Denver Metro area to foot the bill for a title insurance policy for the buyer. (NOTE TO BUYERS: This is negotiable. Buyers have the right to choose their own title insurance policy. After all, it is a policy intended to protect the Buyer against loss from any defects in title, liens or other matters!) Often times sellers rely on the real estate professional to assist them in selecting the title insurance company. While real estate professionals can provide useful information, the Colorado Real Estate Commission has taken the position that it is the responsibility of the consumer to shop around for title insurance policies and closing services. There are many title insurance companies in Colorado and they all vary in cost, quality and the extent of closing services they provide. There is a FREE on-line resource called Mytitleins.com that will calculate your estimated title insurance and closing costs in real time. It will provide you with a comparision of the various title insurance companies in Colorado. Check it out!
Condos and Townhomes: What is the difference?
Buyers, Sellers and even Real Estate Agents are often confused about the difference between condominiums and townhomes. A condominium or condo is one of several units of a complex. When purchasing a condo, you are essentially purchasing everything from the walls of the unit inward. You also own a share of interest in the condominium’s association, which is responsible for maintaining the common areas of the complex (e.g. pool, clubhouse, elevators, hallways). You will pay a monthly Home Owner Association (HOA) fee that covers the maintainance of these common areas. There can also be special assessment fees for larger maintainance projects (e.g. replacing the roof or repainting the complex).
A townhome or townhouse is basically a home attached to adjacent houses and includes ownership of the land underneath it. Townhomes can also be referred to as Row houses, duplexes, triplexes and 4-plexes. Like condos, townhomes can be single or multi-storied and share common walls. Townhomes may also have HOA fees that cover maintainance of common areas.
So….with condos, you essentially own a unit or cube of air plus a share of interest in the condominium association. With townhomes, you own the unit and dirt underneath it. Be aware, the terms “townhome” and “condominium” are used interchangeably, but they are very different! Check the legal description of the property to be sure. If legal decription includes a lot and block legal address description, it is a townhome. If the legal description consists of the name of the complex and the unit number, it is a condominium.
**Tips on Searching for Condos and Townhomes on the Internet**
Agents will post townhomes on the Denver MLS under “condo” and/or “multi family residential.” So, when searching for homes, make sure you search under both sections or you will miss some listings!
To search for Townhomes on my website, click here.
To search for Condos on my website, click here.
If you have questions about purchasing a condo or townhome, feel free to call me!
After closing
110 ways I can sell your house: Part 8 of 8
As your Realtor, my duties do not end at the closing table. I am a lifelong resource to all of my clients and will assist you with any real estate needs or questions in the future. After the sale of your house, if you are upgrading or downsizing, I can switch roles to your buyer’s agent and assist you in the purchase for your next home. If you are moving out of the Denver area, I can refer you to an experienced agent in your new location who can assist with finding your next home. And, if any of your friends, family members or co-workers would benefit from my services, give me a call with their contact information. I would be delighted to help!
My Duties After Closing:
107. Change roles to your buyer’s agent to assist you in the purchase of your next home.
108. Resolve any post-closing questions or conflicts.
109. Assist with any homeowner warranty claims or questions.
110. Be a life long resource to you!
Adapted from JCAR Journal April 2007, The Critical Role of the Realtor®
Well permit data now on-line
If you are looking to purchase a property with a private well, here is some helpful information:
The Colorado Division of Water Resources has opened WellView Web, a site dedicated to providing Well Permit data, information and images. The general public can now search and view permit information online using the free service. Information is updated daily on the site, however new permit information will take up to two weeks to be uploaded.
Click Here to visit Colorado’s WellView Web site.
CLOSING — The end of the journey!
110 ways I can sell your house: Part 7 of 8
The day you’ve been waiting for finally is here–CLOSING! You will be making arrangements with the movers and I will be busy working with the title company and buyer’s lender to ensure a successful, no surprises closing. Click here to get an insight from my clients about how I do business. If you are considering selling your home, give me a call. I can evaluate your unique situation and develop strategies to sell your house in the current marketplace.
My Closing Preparation and Duties:
98. Arrange closing time and location with seller/s, buyer/s, buyer agent, lender and title company.
99. Schedule final walk through with buyer’s agent.
100. Request final closing figures from title company; and review documents closely for errors and review with seller.
101. Coordinate with home warranty company to order warranty, if applicable.
102. Complete office checklist that file is complete.
103. Coordinate this closing with seller’s next purchase and resolve any timing problems.
104. Have a no surprises closing so that seller receives a net proceeds check at closing.
105. Change MLS status and all website postings to Sold and enter all sales data.
106. Provide seller/s CD of all copies of paperwork from the transaction.
Adapted from JCAR Journal April 2007, The Critical Role of the Realtor®
Stay tuned…..in Part 8 of 8 I will be discussing the duties I perform after closing!
Under Contract!
110 ways I can sell your house: Part 6 of 8
In Part 5 of 8 I reviewed the steps I take as the listing agent to review and negotiate the offer. Once I successfully negotiate the price and terms of the offer with the selling agent, you and the buyer/s will sign the offer or counterproposal. Then, you are officially under contract! Once that happens, there are many details I coordinate for you to ensure a successful closing.
Under contract activities duties:
77. Change status in MLS and all website postings to “under contract”.
78. Deliver unrecorded property information to buyer’s agent.
79. Coordinate times for all inspections (house, sewer line scope, roof, radon, mold, structural, septic system, well water; and any surveys etc.) with buyer’s agent.
80. Report any off record matters to buyer’s agent.
81. Contact title company to ensure timely delivery of title documents and commitment to buyer.
82. Review commitment and work with seller to remove any liens or unpaid taxes or encumbrances, if any.
83. Contact buyer’s lender that buyer’s loan application has been completed.
84. Deliver all CIC documents to buyer’s agent.
85. Closely monitor all dates and deadlines of the contract and constantly remind seller, buyer agent, lender and title company of deadlines and obtain updates on progress.
86. Document all communication.
87. Prepare any Amend/Extends to the purchase contract if needed.
88. Obtain Inspection Objection report from agent and discuss objections.
89. Review Inspection Objections with seller and discuss plan to address objections.
90. Prepare Inspection Resolution form with seller.
91. Work closely with buyer’s agent and to resolve any issues or disputes that arise.
92. Coordinate the scheduling of the appraisal with buyer’s lender.
93. Be present for appraisal and provide appraiser with current comps; highlight property’s features and neighborhood information that appraiser may be unaware of and answer any inquiries of the appraiser.
94. Provide additional information and defend property’s value if appraisal comes in low.
95. Obtain a copy of the appraisal, if possible.
96. Provide information to title company regarding seller’s loan payoff.
97. Monitor loan processing through to the underwriter and work with lender to resolve any issues.
Adapted from JCAR Journal April 2007, The Critical Role of the Realtor®
Stay tuned…..in Part 7 of 8 I will be discussing the duties I perform prior to closing!
The Offer and Contract
110 ways I can sell your house: Part 5 of 8
In Part 4, I described all the behind the scenes steps I perform once the property is listed for sale. All of our preparation and marketing efforts will result in getting an offer, hopefully several!! As your Realtor, I will carefully go over the offer with you and negotiate all the details with the buyer’s agent on your behalf. Here are some of my other duties:
66. Review purchase contract submitted by buyer’s agent with seller.
67. Prepare new CMA.
68. Evaluate offer/s with seller and prepare a net sheet for seller to review.
69. Counsel seller on offer/s and explain merits and weakness of the offer.
70. Contact buyers’ agents to review buyer’s qualifications and discuss offer.
71. Deliver all disclosures to buyer’s agent and prior to offer if possible.
72. Ensure the contract and all disclosures and addendums are accurately completed by buyer and buyer’s agent.
73. Confirm buyer is prequalified by calling buyer’s lender and obtain prequalification letter.
74. Negotiate all offers on seller’s behalf and prepare any counter offers, acceptance or amendments to buyer’s agent.
75. When contract is accepted by both parties, review all paperwork is completed and deliver copies of the final contract, addendums and disclosures to the title company, my office, buyer’s agent, lender and seller.
76. Obtain earnest money; provide receipt; and promptly deposit into escrow account.
Adapted from JCAR Journal April 2007, The Critical Role of the Realtor®
Stay tuned…..in Part 6 of 8 I will be discussing the duties I perform once we are officially under contract!
After your house is listed for sale
110 ways I can sell your house: Part 4 of 8
In Part 3, I reviewed all of the steps we take to get your house ready for sale. Once your house is listed on the MLS, my work is not over! There are many behind the scenes steps I will be performing for you during the listing agreement. Not only will I be marketing your property like crazy but I will also be chasing showing agents to get buyer feedback on price and condition. I will also be monitoring the Denver MLS on a daily basis for comparables in your neigbhorhood that sell, go under contract or get withdrawn. This information is critical for us to be on top of our game plan and keep competatively priced. Here are some more of my duties…
Once property is under a listing agreement:
51. Order TBD from the title company and note any unrecorded property lines; agreements; and easements.
52. Verify Home Owner Association fees.
53. Order a copy of the Homeowner Association Bylaws, Minutes, Budget and CC & R’s.
54. Well water: Confirm well status, depth and output from Well Report and obtain copy of the Well Permit by CO State Engineer’s office.
55. Create and mail out “Just Listed” postcards.
56. Create and send company e-card.
57. Attend marketing session at Realtor meeting to market property.
58. Monitor all showing activity and return all calls from agents inquiring about the property.
59. Contact all buyer’s agents by phone and/or email for feedback after showings or previews.
60. Discuss feedback from showing agents with seller(s) to determine if changes will accelerate the sale
61. Continue to monitor comparable MLS listings (new listings, under contract, solds) regularly to ensure property remains competitive in price, terms, conditions and availability. Report to seller/s on market activity.
62. Price changes conveyed promptly to all Internet sites.
63. Reprint/supply brochures promptly as needed.
64. Host open houses.
65. Place regular update calls to seller to discuss marketing and pricing strategies.
Adapted from JCAR Journal April 2007, The Critical Role of the Realtor®
Stay tuned…..in Part 5 of 8 I will be discussing the duties I perform when we get an offer!
Steps for preparing your house for sale
110 ways I can sell your house: Part 3 of 8
In Part 2, I discussed the strategizing we do at the listing presentation. Preparing your house for sale involves a lot of preparation and work for both of us. During this phase, the homeowner will be taking care of necessary cleaning, repairs and staging of the home. Meanwhile, I will completing the paperwork and creating the marketing materials. We want your house to be in tip top shape for our first showing! Here are some of my other duties:
Preparing the house for sale:
35. Provide sellers information and Tips on Preparing your Home for Sale
36. Arrange with sellers to stage house for sale.
37. Take pictures of house for visual tour, brochures, MLS.
38. Prepare property flyer & Home Book
39. Obtain seller’s property disclosure to make packets
40. Prepare and assemble all disclosures for prospective buyers & send to seller and upload all documents online
41. Prepare detailed list of property’s inclusions and exclusions with sale
42. Prepare showing instructions with showing company
43. Put lockbox on front door
44. Arrange for installation of yard sign
45. Complete MLS form and enter property data into MLS
46. Upload virtual tour.
47. Create property flyers and internet ads with seller’s input
48. Upload property data into 50+ websites
49. Create and place “special feature” cards throughout the home for marketing
50. Send seller/s copies of all signed listing paperwork
Adapted from JCAR Journal April 2007, The Critical Role of the Realtor®
Stay tuned…..in Part 4 of 8 I will be discussing the duties I perform while your house is activily listed on the MLS.
