And then this:

“My flat fee service includes reviewing all of my client’s closing documents before they ever set foot in the escrow office (in addition to drafting and negotiating purchase and sale agreements, advising through the contingency periods, reviewing title, and advising on financing matters). “

Hmmm. Go figure.

I have only purchased three homes in which financing was used. I had an attorney involved in all three sales. The only time it is “not going to happen” is if you haven’t mastered the simple task of placing a telephone call.

If there are time limits that don’t allow proper review of all transaction documents, you shouldn’t be signing the papers, IMO.

Finally we agree. Based on the grammar in your last post, you should have stayed in school.

By the way, the Snow at Stevens Pass was phenominal on Sunday. Nothing like sunshine all day. Crowded lift lines, but my kids could only go on Daisy as they are just learning.

I’m curious what happened? Fill me in or let me know offline.

-Tim

I’m a real estate attorney and over the past year I’ve handled over $20 million in residential transactions. Accordingly, I take offense at your depiction of attorneys. While I respect the apparent fact you’ve had a bad experience(s) in the past, to stereotype all attorneys the way you have is childish and suggests a simplistic way of thinking. Hopefully, you are merely venting. I will freely admit that, like all things, there are attorneys who are terrible, those who are ok, and those who are fantastic. I make no claim about where I fall; instead, I let my clients to speak for me. Feel free to check out my testimonials page.

As for S-Crow’s post, I think he raises a very important point about the shortcomings of the current real estate settlement process. Unfortunately, most buyers and sellers go into a transaction under the mistaken impression that their realtor, loan officer, and the escrow company will take care of everything and all they have to do is show up and sign on the dotted line. The truth is that the realtor’s focus is on getting the deal closed and funded. The pessimist would say this is because they only want to get paid and not show the buyer anymore houses or hold any more open houses for the seller. The optimist says realtors have a rigid code of ethics and never put their own interests ahead of their clients. I only want to point out the realtor’s self-interest in the transaction. As for the loan officer, this person also gets paid only if the deal closes and thus, has the same self-interest issue. As for escrow, they have a common law and statutory duty to be impartial as between the parties. Among other things, this means they cannot and will not give legal advice about the meaning of the documents nor the prudence of signing them. In fact they make you sign a document that says you did not receive nor rely on legal advice from the escrow agent.

So, what role can a good real estate attorney play? In my opinion, a good attorney can play an incredibly beneficial role by providing good, timely advice. A bad attorney can be a road block or worse. My practice is solely focused on residential real estate. I charge a flat fee and have no financial interest in whether a given deal closes. This means my advice is strictly focused on my client’s best interests. If they want the deal to close, then I work my tail off to make sure it does. If they decide it is not in their best interest to close (or if I help them come to that conclusion), then I work my tail off to get them out of the deal.

My flat fee service includes reviewing all of my client’s closing documents before they ever set foot in the escrow office (in addition to drafting and negotiating purchase and sale agreements, advising through the contingency periods, reviewing title, and advising on financing matters).

Finally, people should not think the current system is fatally flawed. The truth is that trillions of dollars in transactions go through each year and the mass majority of them result in a happy buyer and a happy seller. In the end, that’s what matters.

FYI, generally buyers sign loan docs a couple of days ahead of closing, so docs can go back to the bank for review. It is rare that a buyer is signing on the actual day of closing, unless the sale is all cash or it’s table funded.(The bank sends their money along with loan docs and does not require review.)

A few suggestions: Go to a lender you trust who will be your advocate from start to finish. Your lender should be willing to talk with you at length, reviewing all the terms of the loan. Make sure you know all the costs and what to expect before you go into sign. Do not be afraid to ask questions at any time during the process.

When you make an offer on a home, make sure your agent allows 7 days between the deadline for loan approval and closing. This gives time for the loan docs to arrive at escrow to be reviewed and you to sign well before closing.

J,
NAR had nothing to do with the 30 Rock episode with Tina Fey buying. I just came back from Inman Real Estate Connect in NYC and Manhattan real estate is still going great guns! It is part of a global market, which is largely unaffected by what is happening in the rest of the country. There are a lot of foreign investors who are fueling NYC’s economy. I am going to do a post on The Seattle P-I Real Estate Professionals blog about a man I met on the plane who just bought in Williamsburg, an emerging neighborhood in Brooklyn not even Manhattan. Prices are still skyrocketing there.

New toyota scion ($17,000) with every purchase. $5,000 contribution to closing costs/loan fees.

Wow – buy this house and we throw in a car and closting/loan costs!

http://www.redfin.com/stingray/do/printable-listing?listing-id=1399369

For those deciphering loan lingo:

GFE = good faith estimate (itemization of list of fees associated with the transaction)
TIL= Truth In Lending Statement (shows APR calculation, terms, assumability of loan, any prepayment penalty and other “stuff”)

I have seen cases where the TIL is indicating pre-payment penalty and the Note/Deed of Trust & Riders shows none.

Great advice, Tim. If a borrower doesn’t want to read the inch thick papers, they should at the very least, let their LO and the escrow company know that they require a copy of the HUD 1-3 days prior to their signing appointment. They can also request the copy of their final GFE/TIL and Note just to get the “down and dirty” of their transaction (make sure there are no prepays, the rate/term is what it’s suppose to be, etc.

My last tip is to let your LO know when your signing appointment is and find out what number they can be reached at during the signing in the event you have any questions.

Exactly, Ray. And that one looks like I’d pay about $125K. I said I’d bite, I didn’t say I’d draw blood, certainly not my own blood. We’ll see where it is in about a year.

Makes you wonder.

Doesn’t look like it fits the criteria Ray, at least not based on the photos I saw of the unit.

Patience there will be many more.

Ray Pepper

Yes, so that they can tell you how good a time it is to buy in their local market. After all, it’s always a good time to buy Real Estate, especially if they get a commission from it.

So, factor in their various self-serving interests and multiple by how completly wrong they’ve been, well you get the idea. They are going through stages of grieving, and we’re just about to the acceptance stage, not quite out of the anger stage.

Well then it must be a great time to buy! HAA

Or at the very least refi.. Were all doing it aren’t we? I got locked at 5.50 took it and ran. 0 points. 495.00 lender fee. that it.

Shop around friends and educate yourself. There are many deals coming down the pike.

Ray Pepper
Broker
http://www.500Realty.net