Friday, July 24, 2015

Real Estate Closings | TRID Changes | Venice FL

There are big changes coming to real estate that will be affecting both home buyers and home sellers that center around mortgage loans and closings.

Known in our industry as TRID (which stands for TILA RESPA Integrated Disclosure), buyers who are financing their real estate purchase will have new financial disclosures and mandatory review periods that will affect how long it takes to close, once a property goes under contract.

New TRID changes for Venice FL real estate
The HUD-1 settlement statement will disappear on 10/3.

Home buyers will receive two new forms when financing: an initial loan estimate disclosure, which replaces the current GFE (Good Faith Estimate) and the inital TIL (Truth in Lending disclosure); then, three days before closing, the home buyer and home seller each will receive a Closing Disclosure, which is meant to more clearly outline loan terms, fees, and other charges than the current HUD-1 settlement statement.

The changes this brings to the residenial real estate industry are very detailed, but to summarize:

  • The recommended number of days needed to close a sale for financed transactions is 45 to 60 days, instead of 30 days;
  • The new 3 day review period for the Closing Disclosure cannot be waived by the buyer to facilitate an earlier closing, nor can it be used to rescind an offer to purchase;
  • Changes to the loan, failure to timely receive documents such as HOA/condo association applications, negotiated repairs, or changes to the closing date, all of which can affect loan approval or interest rates, must be submitted to the lender for approval, and another three day review period starts for the buyer;
  • Realtors need to be more proactive earlier in the escrow period in order to obtain information from sellers, such as HOA/condo association contacts, and begin the membership approval process as early as possible.
  • The current HUD-1 settlement statement will no longer exist.  

If you are buying or selling Venice, FL real estate, a Realtor who knows how these changes will affect the sale of your property will help you have a smoother transaction in as short a time as possible under the new rules.

Please contact me for further information.

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