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Archive for the ‘Title Company Closing Services’ Category

TRID Can Unfortunately Kicked Down the Road

Posted by Chris On June 19

It’s Friday, a typically busy day for us in the title business. We have five loan closings on the schedule – five families about to complete the home buying journey. This should be an awesome day! The awesomeness, though, is already tarnished. Why? Great question! And the answer is why we are sorely disappointed that the CFPB has decided to kick the TRID can down the road.

TRID delay keeps closing tables empty . . . .

TRID delay keeps closing tables empty . . . .

Of the five loan closings on our schedule today, only one is ready to go. That’s right . . . only one. On the other four, we are still waiting for closing instructions and documents from the buyers’ lenders. That means that four eager home buyers do not know whether or not they will be able to close today. Four eager home buyers do not know how much money they need to wire to complete their purchase. Four eager home buyers do not know whether they will be able to unload their moving trucks today. This scenario creates tons of stress for consumers, who should feel nothing but excitement about their closing. Yet it happens every day; and it is, by far, the worst part of what we do – having no control over something that causes unsuspecting consumers so much stress.

For us, the best part of the new TILA-RESPA Integrated Disclosures (TRID) rule addresses this annoying and stress-inducing phenomenon. Initially effective on any loan application made on or after August 1, 2015, TRID requires creditors (mortgage lenders) to deliver the Closing Disclosure form to consumers (buyers/borrowers) at least 3 days prior to “consummation” (under the final rule, the Closing Disclosure replaces the HUD-1 settlement statement and the final Truth in Lending Disclosure). That means no more Fridays like today; no more poor buyers waiting helplessly on the day of closing for final figures; and it should mean improved experiences for every party to the transaction. Because of that, we were really looking forward to the implementation of the rule, warts and all.

On Wednesday, the Consumer Financial Protection Bureau announced that it would delay the effective date of the rule to October. Most of our industries’ advocacy groups have heralded the decision as ideal for consumers, the thought being that the complexity of the changes would interfere with closings. No doubt, there will be some hiccups. They’ll be there in October as well. In the meantime, we’ll be here, with empty closing tables, waiting for closing instructions and helping to manage buyers’ stress.

It’s All About the Kids This Summer

Posted by Chris On June 12

Since November of 2014, your real estate closings have generated $3,000 for local charities. This summer, the Winged Foot Title team has chosen to support the Children’s Home Society of Florida. Take a few minutes to watch this video about CHS’s impact on kids.

We hope that you will join us this summer in support of CHS and help to bring children “healing, homes and hope.” A portion of every closing will be donated to this worthy organization and the children it serves. In the meantime, you can connect with CHS directly through Twitter and Facebook. Thanks all!

We get this question a lot. And we often get it laden with defensiveness from buyers’ real estate agents who are surprised by the demands of FIRPTA on their clients. Because FIRPTA is superficially understood as a tax on the seller, the surprise is understandable. So let’s discuss WHY this is an important issue for buyers and their agents to consider and HOW they can set expectations and prepare better for a deal that involves FIRPTA.

What is FIRPTA?

We have written extensively about FIRPTA on our webpage. “FIRPTA stands for the Foreign Investment in Real

FIRPTA navigation made simple.

Property Tax Act, which is found in Section 1445 of the IRS Code. In a nutshell, the Act provides that a transferee (i.e., buyer) of U.S. real property must withhold tax if the transferor (i.e., seller) is a foreign person. When FIRPTA applies, 10% of the gross sales price must be withheld and remitted to the IRS . . . .”

Why Should the Buyer Care about FIRPTA?

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A seller wrote to us recently and wondered the following:

“I paid the taxes from my escrow account for this year, how do I get my prorated money back? I paid my homeowner’s insurance through my escrow account, who handles cancelling the insurance and how do I do that? What will I need to provide to them showing proof that I no longer own the home?”

We’re sure she’s not the only one who wonders about these things, so let’s look at her situation and explain how the credits and reimbursements are likely to work at and after closing.

What is an escrow account?

Our client mentioned that she had paid taxes and insurance from her “escrow account.” She is referring to an escrow account which her mortgage lender required her to establish and fund so that the lender may ensure the payment of  lien- and risk-wielding items (like taxes and insurance!). Lenders often require borrowers to pay a monthly amount for “escrows” in addition to their principal and interest payment. The lender keeps those funds over the course of the loan and pays for the escrowed items from the escrow account when they become due.

In our customer’s case, her lender had paid both her taxes and insurance for the current year prior to the closing of her sale. For the sake of example, let’s say that her lender made these payments on November 15, 2014 (these would not normally be paid at the same time but we’re trying to keep it simple) and her closing was scheduled for December 1, 2014. At closing, she would have paid for an annual insurance policy through November 14, 2015 and for 2014 property taxes through December 31, 2014. So how does she get her money back since she won’t own the property after December 1?

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3 Real Estate Tips from The Masters

Posted by Chris On April 21

We are 2 weeks removed from Jordan Spieth’s impressive victory at this year’s Masters Tournament (What were you doing when you were 21???). The #Masters is not trending. But we in the real estate business sure can learn a few things from this very special tournament.

Tip 1:  BE DIFFERENT

The beauty of the golf course and the tournament’s rich rich history are enough to distinguish the Masters Tournament from other high profile golf tournaments. But it’s a myriad of other things that make the Masters . . .

Par 3 Scoreboard from 2013 Masters Tournament.

Par 3 Scoreboard from 2013 Masters Tournament.

well, the Masters. Take the Masters lexicon, for example.

At the Masters, “fans” don’t sit on “bleachers.” Instead, “patrons” sit on “observation stands.” The distinctions may seem immaterial, but they are Masters distinctions and are known as such in the golf community. So what can we real estate professionals do to be different? Taking the lead from the Masters, how about a fresh new lexicon? Could you call your “clients” something besides “clients” that may make their experience with you more memorable? I bet you could.

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Help Us Support Fort Myers Relay for Life!

Posted by Chris On April 2

Winged Foot team gives donation to Boys and Girls Clubs of Lee County representative.

A month or so ago we rolled out our #closingwithacause campaign. In a nutshell, team members get to select a favorite charity or cause which we support by donating a portion of our revenue from every real estate closing we handle. First of all, we want to send a huge THANK YOU to everyone who did business with us this first quarter. We were able to donate $1,380 to two very deserving local groups – The Boys & Girls Clubs of Lee County & Operation Inasmuch United Fort Myers.

Our efforts continue into spring as we commit to supporting our very own Kristen Flora and her Fort Myers Relay for Life team – Purple Haze!

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Wiring funds when buying a home

Posted by Chris On February 13

By Chris Black, Esq.

During the closing process, who doesn’t want to reduce costs and shorten steps whenever possible, right? To this end, many of our customers ask us about wiring funds for both escrow and total closing costs together. This is a great question that likely results from people’s interest in avoiding multiple wire fees or in wanting to avoid multiple trips to the bank. We get it.

Ordinarily, if a consumer wires funds to us, they are charged a fee for that service by their bank. (Note: Winged Foot Title’s current bank does not charge for incoming wires so we do not need to pass along such a charge to the consumer.). And, in most cases, consumers must be physically present at a bank branch in order to initiate the wire. So, we totally understand the desire to avoid additional fees and trips to the bank. From our perspective, a buyer client who is paying cash for real property in Florida could certainly wire their earnest money simultaneously with what they estimate to be the required amount due at closing. Here are a couple of things to consider when doing so.

First, please notify us of your intent to wire the funds together so that we may account for them properly. Along those same lines, your notification should specify the amounts and their intended use. For example, if your earnest money requirement is $1,000 and you wire $125,000, please make sure that you communicate to us how the wire should be applied.

Second, it will be difficult or impossible to have an exact amount required for closing at the time your earnest money is due under the terms of your contract. That would require you to send an estimated amount, which if more than necessary we would refund or if less than necessary would require an additional wire transfer for the amounts outstanding.

Lastly, you should discuss your intent with your legal counsel or REALTOR®. There are potential issues with wiring all of your funds at one time and they may advise against it.

Want more tips for making your closing process a snap? Sign up for invitations to our free event series, #WFTLearn. Even if you have to miss one, we’ll send you a recap afterward!

Ft. Myers Title Company Listening Lesson

Posted by Chris On November 21

Listening is such an integral part of a title company’s continuous improvement. We have to know what is important to our clientele in order to meet their needs, their wants, their pain points. And the only way to figure that out is to ask and listen.

Happy Buyers!

We survey our consumer clients – real estate buyers, sellers and homeowners who are refinancing – and our real estate professional clientele at the beginning and end of every transaction. And every Friday morning during our daily huddle we review the data as a team in order to better understand our customers’ perspectives. Today we thought we’d share some consumer feedback from the last week.

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20 Call Challenge Results Are In!

Posted by Chris On October 26

What a powerful few days!  Of the 49 participants in our “20 Call Challenge”, 17 succeeeded in making their 20 calls.  We did not reach 26 with our follow up calls; and 6 made some calls but didn’t get to the goal of 20.  We would like to congratulate all of those who made the effort to simply reach out!  So how’d they do?  Let’s take a look.

As far as we can tell, the “20 Call Challenge” participants made at least 450 connections in total.  From those connections, we know that at least 15 deals are in the works – from listings to buyer leads to refinances (for the mortgage lenders who participated).  Congratulations again to all of you who picked up the phone!  If any of you would like to give this another shot, please let us know.  We’d be happy to help you with the accountability.

And now for the winners of the 3 grand prizes.

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Last night we hosted what we’re calling our #WFTLearn Success Series with local top producers Denny Grimes & D. Michael Burke.  These guys were fantastic sports and shared their secrets to success willingly.  At the end of the event, we challenged the audience of REALTORS® and mortgage lenders to make 20 calls in 2 days to people already in their database; and we promised to call them on the 2nd day as their accountability partner.  Denny and Michael generously shared the following scripts which they would use for this situation:

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NOT LEGAL ADVICE: This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area. This information is not intended as legal advice and may not be used as legal advice. It should not be used to replace the advice of your own legal counsel.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.