Don’t Be Cheated at Real Estate Closings

The linked article is geared to retail-real-estate consumers, but the points raised certainly apply to investors too. If you are a new investor or haven’t even been through a closing, we highly recommend that you take some time to read and consider the article. It certainly won’t hurt as a refresher either for experienced experts. Here are the highlights only. Enjoy:

That pile of mortgage papers you sign could contain fraud or errors that expose you to massive costs or even criminal charges. Here’s how to protect yourself.

  1. Request your loan package early.
  2. Take your time.
  3. Ask questions.
  4. Get an attorney.
  5. Ensure that a lender’s rep attends your closing.
  6. Blow the whistle.
  7. Follow up.
  8. Decline to sign.
  9. Shop.
  10. Find deep pockets.
  11. Follow up. [not redundant]

Read the whole article (opens in a new tab so you may easily comment here): 11 ways to keep from getting snookered at the closing table – MSN Real Estate.

  1. Everything you want to happen at and/or before closing can be stated in your Real Estate Sales/Purchase Agreement.
  2. Also, to save time, you don’t have to have every correction made and then wait for the new batch of documents to be printed. You can line out by hand what is wrong, add any correcting language also by hand, and then simply initial and date the correction (helpful if there are few changes/corrections). Have every party to the agreement initial and date every change on every copy of each document that pertains to the party.
  3. Get original signatures on your full copy of all documents as finalized — not photocopied signatures. {Electronic signatures on documents have arrived in some industries and in different legal jurisdictions, so the legality of using proper electronic signatures for everyone’s convenience is something to keep in mind concerning real estate closings, etc. One day (perhaps in the not-too-distant future — no exact prediction as to when), real estate sales and purchases, including closings, may typically be handled mostly, and in some cases, entirely over the Internet.}
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