Real estate industry is booming and with that the business of real estate attorneys seems to be booming too. Well it doesn’t so much affect the real estate attorneys whether the real estate industry is booming or not. Since shelter is one of the prime requirements of man, there would be property buyers and property sellers in any case at all times (and real estate attorneys would always be in demand). There are many different ways in which people utilize the services of real estate attorneys. Let’s have a look at what these different ways are:

1.    Property dispute: This is one scenario where real estate attorneys are obviously the most involved. Not only do they try to get these property disputes resolved (by litigation or otherwise) but also help to get rid of the property (in certain cases) by selling it off and using the amount received for settlement.
2.    Tenancy disputes: A real estate attorney also helps in resolving the disputes between tenants and landlords.
3.    Settlement of property on account of death: Sometimes real estate attorneys also handle the property of the deceased. Here they sell off the property for settling it among the heirs.
4.    Divorce settlements: Again real estate attorneys help in the settling of the jointly owned properties and the divorce settlement in general.
5.    Don’t want a broker: Some people are just not comfortable with hiring a broker to sell their property, and hence they entrust this with real estate attorneys (some real estate attorneys do take this up).
6.    As advisors/consultants: A lot of attorneys also work for real estate investors. In fact, hiring a real estate attorney is a very good option for a real estate investor. A real estate attorney can really make the transactions smooth for the investor. A real estate attorney will not only get it done correctly, but also quickly. And for a real estate investor time is very important since he can spend the time saved due to hiring a real estate attorney, into looking for really good deals.
7.    Information provider: Some real estate investors use real estate attorneys as a rich source of information especially for getting the information about the properties that are up on sale due to disputes or settlement procedures. Here the real estate investors try to gain advantage by getting the information earlier than others (and they do sometimes get very good deals in this way).

So whether the real estate business booms or not, real estate attorneys are always going to be in job (booming job).

The United States Department of Housing and Urban Development (HUD) drafted and enacted the Real Estate Settlement Procedures Act (RESPA) more than 30 years ago as a consumer protection statute designed to help home buyers navigate their way through the sometimes complicated business of real estate. Specifically, RESPA addresses the issue of home buying closing costs and settlement procedures.

Under the terms of RESPA, home buyers are entitled to receive certain disclosures during the course of a real estate transaction. The law also prohibits kickbacks and referral fees that unnecessarily inflate the cost of settlement services and therefore falsely driving up the cost buying a home. RESPA provisions apply to loans secured with a mortgage on residential properties designed to house one to four families. Examples of the types of loans covered by RESPA include:

Purchase loans

Assumptions

Refinancing loans or measures

Property improvement loans

Lines of credit based on equity

An office within HUD, called ‘RESPA and Interstate Land Sales’ enforces the RESPA statute. Buyers may contact the office directly if they think the terms of closing and settlement in their house deal do not respect RESPA provisions.

RESPA stipulates that certain disclosures be made at particular times during the real estate transaction process. When a buyer goes to apply for a mortgage loan, his or her broker or lender must provide – either at the time of the application or by mail within three days – a Special Information Booklet, a Good Faith Estimate (GFE) of potential settlement fees, and a Mortgage Servicing Disclosure Statement.

The Special Information is required for home purchases only, and contains details about different kinds of real estate settlement services. The GFE outlines the type and amount of settlement costs the buyer will likely encounter when his or her house deal closes, as well as whether the broker or lender requires the buyer to use a particular settlement services vendor. The figures in the GFE are estimates, but they should be relatively close to the actual settlement costs at closing. Finally, the Mortgage Servicing Disclosure Statement reveals whether the broker or lender will handle the buyer’s loan or whether it will be transferred to another lender. The Mortgage Servicing Disclosure Statement should also have a section dedicated to options the buyer may employ to resolve any complaints.

If the buyer decides to go ahead with the transaction after securing appropriate financing, the next RESPA-required disclosure is an Affiliated Business Arrangement disclosure (AfBA), which is used if a settlement service vendor or provider refers the buyer to another provider that is affiliated with the original service provider. The affiliation can be part or full ownership of any other beneficial interest. The AfBA disclosure must be made before or at the time the referral is made, and it must give a full description of the relationship that exists between the two companies as well as a reasonable estimate of the fees of the second settlement service provider. In most cases, the buyer is not obligated to accept the services offered by the second service provider, but he or she may choose to do so.

One day before the settlement (or closing) date, the borrower may see the HUD-1 Settlement form, which details all settlement charges imposed on borrowers and sellers. All parties receive a complete copy of this form, showing all of the actual settlement costs, at the time of settlement, or in the mail shortly thereafter.

Another disclosure that is made at the time of settlement is the Initial Escrow Statement, which lists the estimates of charges that are expected to be paid from the escrow account during the first year of the loan. Charges may include taxes and insurance premiums. After the first year, loan servicers must provide borrowers with an updated annual escrow, which lists all deposits and payments, as well as any relevant shortages or surpluses related to the account.

If, at some point after the settlement occurs, the loan servicer reassigns the loan to another servicer, the borrower must be notified 15 days in advance by means of a Servicing Transfer Statement.

While RESPA does not set out particular penalties for non-disclosure of the above mentioned items, kickbacks and referral fees that violate Section 8 of the law are subject to fines of up to $10,000 and imprisonment for up to one year.

Settlement or closing fees cost Americans about $55 billion each year. HUD has initiated a RESPA reform process that the department hopes will simplify the costs involved with buying a home to better reflect the Bush administration’s goal of helping to build an ‘ownership society’ in which all Americans can own their own home. The reform process has not been completed, and for now, the rules remain as they have been for the past three decades.

You as the buyer or seller will have to appear at a meeting in which all of the final legal details will be handled, this is known as the closing. Others in attendance are the realtor, lender and a closing agent. The meeting usually occurs either at an agent’s office, or at a lending institution such as a bank or mortgage company. The main emphasis is to review all of the paper work, and to sign the different forms for financing, and to transfer title to the new owner. For the buyer and seller knowing what to expect can ease concerns on the process of closing.

Typically the buyer will have a more of a role to play in the process of closing on a house. However, the seller will have an important role to play too. Usually a review of the settlement sheet is presented first for both to sign and agree upon. You will need to be sure about the terms and agreements before you sign. Next the buyer will be required to show proofs of required mortgage insurance, and that all necessary inspections have been completed according to the guidelines of the contract. All parties must be in complete agreement over terms and sign the documents. Once this phase is completed both parties will present a certified check for the entire amount of the closing costs. The lender will present the funds paid to the closing agent, also if there are any funds due they will be submitted at that time to the lending agent.

Depending on the requirements that you agreed to as a buyer, for example your bank or mortgage company may have stipulated that any you will need to set up an escrow account to pay your property taxes, or may be your designated home insurance provider out of this account, this will be efficiently handled at the closing meeting for your new home. Other issues such as the recording of the deed will be discussed. Don’t be surprised if your informed that you don’t have legal claim to the property until it is officially recorded at your local courthouse. It is to be understood that you may not move in until you have legal ownership of a clear title, and this process can take from a few days to over a week. This is why disbursement of funds to anyone involved in the transaction will not be paid until the deed recording is completed.

If you’re the buyer you will need to know what forms you will be required to sign. Take a few moments and write down a check list, and bring along copies of any paper work that you have been required to sign or review. An important document known as the Truth in Lending statement will contain vast amounts of financial information for the buyer. This statement will contain information such as your interest rate for the mortgage, amount of the cash financed, and your monthly payment schedules along with the total amount paid based on the length of your loan. Detailed information will be found in other paper work for the buyer too. The mortgage note and other assigned specifications will spell out in specifics terms such as how and where the note is to be paid, and the institutions right to reclaim their rights to the property. This legal documentation will also explain that you’re to meet other specific requirements, such as paying any necessary insurances and taxes yearly, that is of course if you are allowed to pay this independently, and is not part of an escrow account.

The value and importance of a good realtor is quickly appreciated in the closing meeting. Many of the processes involved are readily explained by a caring and competent professional before the closing ever takes place. Make sure though that you do your part by taking the time to ask any questions that you have with your realtor, and studying if necessary your part of the process, whether you’re the buyer or seller. Home buying and selling can be a pleasant experience for all of those involved without a lot of hassle and grief. Just make sure you approach it with the right attitude and guidance.

Buying a home can be one of the biggest and most important investments you can make. The process of buying the home that you want can be a long and tedious process, taking up most of your time. It’s up to you, as the consumer, to ask any questions, pay attention to details and to learn about the real estate market in the area in which you intend to buy.

Step One

You must know what your wants and needs are before embarking on the long journey of house hunting. Taking a piece of paper, sit down and write down all the features that are most important to you:

Are you looking for a house in a specific city, neighborhood or school district?

How many bedrooms and bathrooms do you want or need?

Do you want off street parking, or a one or two car garage?

If you operate a home based business, are there any restrictions in the area you intend to buy in?

Do you want a finished basement or attic space?

Do you want a ranch style home or two story house?

Do you want a central air unit?

Do your want a furnace or a boiler for heat?

Now, on a separate piece of paper, write down all the features that you absolutely do not want in a house:

Living in a congested part of town.

Living next to an airport, train station or highway.

A home that is in great need of repair.

A home with too many stairs.

Keep this list in mind as you look at houses. This list may also change from time to time as you look at houses. You may choose to add or remove certain features you do not want or are willing to make compromises on. Don’t be disappointed if you can not find the “perfect” home. Most homes do not come “perfect,” they can only be made that way through time and patience.

Step Two

Before you begin looking at properties, you will need to get your finances in order. This will be a good time to review your credit report and possibly clean it up a bit to improve your credit score. It’s important to check your credit report to make sure there are no discrepancies. Any past due amounts should be paid in full or most companies will be willing to negotiate a settlement price to close the debt.

For example: If you have a past due credit card debt you no longer use and that has been entered into collections at an amount of $900. You may be able to offer the company a settlement of $500 to settle that debt and have the debt stricken from your records. Before paying this settlement, have this agreement in writing. Be sure to keep all of the receipts to the items you settle on your credit report because it may take weeks or even months for the settled debt to be removed from your credit report.

Step Three

Now decide what kind of property you are interested in buying. Are you interested in a HUD, foreclosure, real estate or for sale by owner property? There are many web sites on line where you can find homes by city, state, or price range. On these sites, you can see the picture of the home, many with virtual tours, and review the listing features and details.

Step Four

Now is the time to find a lender and get pre-approved for the loan. This will give you a better understanding of what price range you can look into. Being pre-approved also serves a great advantage for when you find the home that you want, so that you can move ahead and place an offer on the house without having to wait on a pre-approval while someone else steps in and takes the house right from under you.

Lenders may offer special programs on loans, such as the FHA or Ameri-Dream, that can save you extra money in the closing process. Before deciding on a loan, ask the lender about any of these special programs and what would work to your advantage.

Step Five

Most first time home buyers prefer to work closely with a reputable real estate agent, regardless of the type of property you wish to buy. Real estate agents are very knowledgeable and can give you many helpful tips and information that can benefit you. They are also great negotiators and will help explain the complicated paperwork involved when placing an offer on the house or when closing a deal. Be certain that your real estate agent is working for you as the buyer and not for the seller of the house you would like to purchase. This can lead to a conflict of interests and cause many problems.

Choosing a real estate agent to work with should take more than picking a number out of the phone book. Talk to your friends and neighbors and ask them for any recommendations. You should only work with an agent you feel comfortable with.

5 tricks to make it big with real estate investing

Real estate investing is one of the most attractive ways of making good money (that is if you do it correct). Moreover, real estate investing is also a lot of fun. A lot of people practice real estate investing as their core profession and, in fact, make a lot of money that way.

Real estate investing is really an art and, like any art, it takes time to master the art of real estate investing. The key, of course, is to buy at a lower price and sell at higher price and make a profit even after paying all the costs involved in the two (buy/sell) transactions. Generally, people are of the opinion that real estate investing makes sense only when the rates are on the rise. However, real estate investing for profits is possible just about any time (and as I just said, real estate investing is an art). Here is a list of tricks that can make real estate investing profitable for you:

1) Look for public auctions, divorce settlements and foreclosures (bank/FHA/VA): Since quick settlement is the preference here (and not price), you might get a property at a price that is much lower than the prevailing market rate. You can then make arrangements to sell it at the market rate over a short period of time. However, make sure that the property is worth the price you are paying.
2) Looking for old listings: The old listings that are still unsold may provide you with good real estate investing opportunities. Just get hold of an old newspaper and call up the sellers. They might have given up hope of selling that property at all and with a bit of negotiation you can get the property for a real low price.
3) The hidden treasure: A really old (and dirty) looking house may scare off buyers. But this might be your chance for real estate investing that can yield good profits. So, explore such properties and check if spending a bit on them can make them shine. You can get these at very low prices and make a big profit in a short time.
4) Team up with attorneys: There are a number of attorneys who handle property sales on behalf of sellers or in special circumstances (like the death of the property owner). They might sometimes be looking to dispose off the property rather quickly and hence at a low price. Be the first one to grab such real estate investing opportunities and enjoy the profits.
5) Keep tab on the newspaper announcements: Property sell offs due to deaths, divorce settlements, immediate cash requirements and other reason are frequently announced in local papers. Keep track of such real estate investing avenues.