Glen Oaks Escrow

Pros and Pitfalls of the Buyer's Choice Act

The Buyer’s Choice Act (AB 957) was established to protect the buyer’s right in an REO transaction in having a choice as to which Escrow Company and Title Company is used. This sounds great, although in many cases it can be a benefit to the buyer to choose the companies that the REO Bank use on a regular basis for the following reasons:

• The REO Banks require the settlement companies to use their online systems (only the companies selected by the REO Banks are given authorization to log onto the online systems) in order to obtain necessary documentation for your transaction. Without access to the online systems there may be delays in the closing process.
• The REO Banks have special internal requirements that must be completed before they can move forward to closing. The Escrow Companies and Title Companies used by the REO Banks know the requirements and are able to provide the seller with the necessary items in advance therefore getting the job done quicker and more efficiently.
• The Title Companies that work with the REO Banks have documentation already in place that is necessary to clear the title on the properties. Using Title Companies that work with the REO Banks creates a much smoother transaction process for you.
• The REO Banks must approve an estimated HUD settlement statement prior to authorizing the close of escrow. In order to accomplish this each REO Bank has special requirements for certain items they need prior to approving said settlement statement. All these items again must be sent to the seller via their online systems. Using the companies that know the REO Bank’s requirements helps to get your transaction completed much quicker and smoother.
• Each REO Bank is different and has different requirements. Using an Escrow Company and Title Company that has experience with that particular Bank’s requirements will inevitably make your transaction smoother.

For further information on the Buyer’s Choice Act you can read the following article: AB 957 “The Buyers Choice Act” Passes

When making your choice or accepting the seller’s choice of escrow or title companies, consider asking the following questions to the prospective companies:

1. Do they retain an Errors & Omissions Insurance Policy and a Fidelity Bond each with a minimum of $2,000,000 which protects your transaction to the fullest value?
2. Do they conduct background checks on all new hires through the Department of Justice including stockholders, officers, directors and managers?
3. Are Potential employees barred if they have drug convictions, moral turpitude or theft of any type on their record?
4. Do they have set minimum financial requirements by their licensing entity?
5. Are their trust funds and processing of files audited by their licensing entity, or in-house auditors and CPA?
6. Are their trust funds balanced every day?
7. Is their computer systems capable of handling the paperless file required for processing an REO transaction?
8. Are they proficient in a variety of REO software platforms?
9. Do they have an extensive back up computer systems, which includes a disaster preparedness plan?
10. Can they handle all transactions in a professional, honest and diligent manner?

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What’s a Gravatar and Why Every Modern Realtor Should Have One

Tuesdays, here at the Glen Oaks Escrow website, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.

The picture below is a screen shot of multiple comments that were left on a blog post that was promoting a happy hour gathering at a social media conference that happened earlier this year.

Quick, take a look at the image and tell me at first glance which of the people commenting:

1. Did you look at first?
2. Do you think is the most professional?
3. Do you think is the most technically proficient?
4. Seems the most like a real person?
5. Are you most drawn to?

I’m willing to bet that the people who have images next to their comment (me and Hans Ziegenbein) were the answers you gave. If I ask you which people appear to be the least professional and least technically proficient, which would you answer? The one’s without a photo? Probably so. Which camp would you rather be in?

In the post I did last week, I explained what an Avatar is your visual image of yourself online – usually your photo), and how it is an essential consideration of the brand image for any modern Realtor. This post expands upon that and introduce you to Gravatar.com, a service that will make including your avatar in your blog comments, simple and easy. Here is a brief video which clearly explains the service:

As the video mentions, once you sign up for a gravatar account, you can associate ALL the email addresses that you have with your account (your brokerage email, your gmail account, your home account, your college alumni account, etc). And, then when you go to comment on a blog or forum, no matter what email address you use, your photo is automatically included when you make a comment (assuming the site supports gravatars…which many blogs and forums do).

A gravatar is a great way for a Realtor who participates in blog commenting to be positioned with a professional, consistent brand image across many sites. It also centralizes and automates the posting of your photo when you comment on the web. By using a gravatar, you are more effectively branding yourself with the image you choose and you are more likely to be perceived as more professional and technically proficient. So why not continue the brand image you have created off-line to on-line and sign up with Gravatar.com?

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Revised HUD Forms Benefit the Buyer

The New Year is here, you are ready to purchase a new home, what’s new?? The biggest and most significant industry change in years, maybe even decades, has come from the US Department of Housing and Urban Development (HUD). HUD has revised the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement to try and make it simpler and easier for the consumer to make responsible and informed decisions before purchasing a home.

As a consumer, most of the changes and revised forms have been made with your best interests in mind. HUD has tried to prepare a simpler more direct way to help you understand your options and fees up front so that you have as much information as early as possible to be able to make the best decision for you and your family. The new rules and forms have been put in place to help provide a loan shopping tool that accurately discloses terms and fees, and prevents last minute changes to either at closing.

In anticipation of the new rules, HUD has released a publication to help guide you, the consumer, through the loan decision process:  Shopping For Your Home Loan: HUD’s Settlement Cost Booklet. Real Estate Settlement Procedures Act (RESPA) requires that loan originators provide consumers with the booklet within three days of a loan application. This booklet, albeit lengthy, provides a basic overview of the home buying and mortgage lending process. It also explains in detail each part of the new GFE and the new HUD-1 Settlement Statement.

The intention of the new GFE is to encourage consumers to shop and compare fees from various lenders before choosing a mortgage. It shows what services are lender chosen (and thus cannot change), and also what services the consumer can go out and shop for. It clearly states important dates, loan terms, and settlement charges should you decide to move forward with the loan.

The new HUD-1 Settlement Statement then allows borrowers to easily compare those quoted fees to their final costs before closing on a loan. A new page has also been added to the HUD-1 Settlement Statement that contains a chart which shows the actual fees charged compared to those fees that were listed on the GFE. The chart identifies charges that should not have increased at all compared to the GFE, those that should not have increased by more than 10% compared to the GFE, and those that can fluctuate.

• Origination charge: cannot increase.
• Transfer taxes: cannot increase.
• Appraisal fees: can only increase up to 10%.
• Government recording fees: can only increase up to 10%.
• Title insurance: can only increase up to 10% if borrower uses the title insurer selected by the lender

It also shows whether the consumer’s monthly payment will increase and, if so, when. This gives the borrower a very clear picture of what the closing expenses will be compared to what was shown on the GFE, so he or she can note any discrepancies and ask about them up front and prior to closing –preventing surprise fees and delays at the time of signing.

With these new tools now available and with a clearer disclosure of fees and terms, hopefully consumers will be able to make informed and responsible decisions that will help them and their families achieve financial success and home ownership.

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Build Your Online Brand by Paying Attention to Your Avatar

Tuesdays, here at the Glen Oaks Escrow website, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.

Build your online brand with your avatar? Your what? Wondering what an avatar even is? Here is a hint:

Avatar is a fancy word for the small image used to depict your online presence or identity. It is a very important part of any Realtor’s online presence and branding. When you create a profile on a social media website, they often ask you to upload a photo of yourself. This photo is your avatar – most Realtors would think of it as their headshot. But should your avatar be your headshot? Maybe, but maybe not.

Here are some things to consider when choosing your avatar:

• Your avatar sets the tone for who you are. What do you want it to say? It should be a reflection of you. It is the first visual that people generally see of you. Put some thought behind it. Keep in mind that it does play a part in defining your personal brand online. What do you want your personal brand to say?
• Keep in mind that the digital world is generally more casual than the print world in marketing yourself. I suggest portraying a professional, yet approachable image of yourself. It does not need to be of you in business formal attire (of course, it can be).
• The image will most often be presented very small, and cropped to a square. Very frequently the image will be only a ½ inch square. It will often appear as part of a list like this example from Facebook.

• Your avatar should be close up to your face. Because of the small size that most Avatar’s are presented, it is generally best to have the photo be cropped tight.
• It is ok to get creative! Your avatar doesn’t have to be your face (but most Realtors will likely choose this option). Also, think about getting creative with your cropping. You’d be surprised how well you can communicate you with just part of your face. For some additional options check out this Guide To Using Avatars for Online Marketing by Justin Smith of the Real Estate Tomato.

Take a look at the sample avatars at the beginning of this post and a few more below. These are all appropriate guides for Realtors who want to brand themselves online and participate in the social media game. Give your avatar some thought – make sure your photo fits the medium, communicates what you want it to say, and is a reflection of you. It will be good for your brand and your business!

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Understanding the Statement of Information Form From Escrow

What is the Statement of Information?

Upon the opening of escrow, Buyers and Sellers receive their initial escrow package – the Statement of Information (also known as the Statement of Identity) is included in this package for completion and return to the escrow holder.

The statement of information is a one page document which requests the party’s name, date of birth, social security number, current and previous addresses etc.

Who requires the Statement of Information?

The Title Company of record requires this completed form to ensure successful and expedient transfer of title. This document assists in eliminating untimely delays in closing of real estate transactions.

How does the Statement of Information work?

The Statement of Identity establishes and confirms identity. Confirming identity will assist the Title Company to eliminate/resolve matters that affect real property such as child support liens, judgments, bankruptcies etc., filed against persons who have the same or similar names.

This is important as such liens and judgments are recorded against real property and against individuals on a daily basis.

Why Should Buyers/Sellers Complete the Statement of Information?

Consider these scenarios:

Scenario #1: Seller is Robert Smith. The title company runs a name check on Robert Smith. Title company finds recorded liens and judgments filed against a Robert Smith that must be paid.

How will title eliminate our Seller, Robert Smith against these potential liens? Title will compare social security numbers, previous address, etc. (as per Statement of Identity) to determine which Robert Smith is liable for payment of said liens/judgments.

As result, our Seller Robert Smith has been eliminated as the potential party owing thousands of dollars due to liens.

Scenario #2: Buyer/Borrower is John Williams. Once again, title runs a name check and discovers that a John Williams has defaulted on his child support payments. Upon further investigation it has been determined that YES this is our Buyer/Borrower. Now escrow has the heads up to advise their Buyer/Borrower to bring his account current and also escrow can then secure an updated statement that will be sufficient for title transfer.

In conclusion:

The title company requires that buyers/borrowers and sellers fill out the Statement of Information to be able to complete their fiduciary duty to return clear title for the real estate transaction. The documents the title company requires comes from the escrow company after it has been completed by the Buyer or Seller, so your Escrow Officer can discuss the Statement of Information with you. Each transaction is case specific. Your Escrow Officer can clarify the points that are needed to finalize the transaction.

If the Statement of Information requirements give you cause for discomfort, talk to your Escrow Officer about the specific needs of your escrow. Your Escrow Officer will be able to explain the Privacy Act Notice with which Glen Oaks Escrow is in compliance.

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Realtor Portal for Google's Real Estate Tools

Tuesdays, here at the Glen Oaks Escrow website, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.

Google is used by millions of people every day to search for everything, including real estate. The buzz at the recent Inman Connect Conference in New York City, was the importance of search and being found on Google by your potential customers. To help Realtor’s do that, Google has created “Google for Real Estate Professionals”, a special section just for agents looking for the tools and tips to harness real estate search capabilities.  Go to Google.com/realestatetools and there you will find Google’s suggestions for utilizing Google Maps, AdWords and YouTube to connect to your potential customers.

As Google states on the site:

“The majority of home buyers use the Internet to research properties. Google makes it easier for real estate professionals to connect with home buyers and renters at every stage – while they’re looking for properties, checking out locations and selecting their agent. It’s how you reach more sellers, attract more buyers and sell more homes.”

Here is a summary of the real estate lead generation options Google highlights:

• Google Maps puts all parts of the property picture together. It’s a free service and one that makes your listings easier for home buyers to find. Are you uploading your listings to Google? Get more information on how to best do this at Google’s FAQ for Real Estate Agents and Brokers. Also, agents should not overlook services like Real Estate Shows where as part of your membership, you can create a property flyer via a simple, templated process, and have that flyer syndicated not only to Google, but also Trulia, Zillow, and other top listing sites.
• AdWords (Google’s paid search results program, also know as pay per click advertising) provides effective and efficient lead generation for real estate professionals. Set whatever budget you are comfortable with, target your ads by demographics and geography, and reach potential buyers and sellers at the precise moment they are looking for properties or agents.
• YouTube: Are you showcasing your listings in video, on your own branded YouTube channel? YouTube isn’t another TV screen, but a window into your business through which viewers can learn about your properties, your people and your ideas. For real estate professionals, it means your listings can sell themselves and home buyers can do a virtual walk-through of potential homes before they contact you.

The site also provides excellent information about using Google Analytics and Insights for Search. The tutorials are well written and easy to understand.

Learning how to best position yourself and your real estate business on Google is fast becoming the critical business skill of the modern Realtor. Google has just made understanding it all a bit easier for the industry with this portal. It’s worth a look.

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