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If you're going to buy or sell a home this year, try to avoid the 8.1.2015 date and slightly beyond. The government is attempting to save us from ourselves again and this Summer we'll all be challenged to get through it. Real Estate closing forms are changing and so are approval deadlines to actually HAVE a real estate closing. The current HUD 1, Good Faith Estimate and Truth in Lending disclosure forms are all vanishing as of August 1. They will be replaced by two new forms that will usher us through the closing process. The form changes are not the problem. Along with the forms change are timing changes that require that these forms be completed and approved by ALL parties at least three business days prior to closing. Changes in any docs after that come with hefty consequences and potential delays. For starters this is a radical change to the current method of doing business. Do you know how many real estate closings get set the day before? The day of? MOST of them. By many estimates it will take up to 15 additional days to close a transaction and could make closing back to back transactions extremely cumbersome given any changes to either one could lead to delays in both. What's the bottom line? It will be very difficult during the early days of these new rules to close a sale without great advocacy between buyers, sellers, mortgage companies and Realtors. If all parts don't work very well together this process cold become more than a small headache. Get great help as you buy or sell this year especially if you plan to do so with a closing coming after August 1. If you would like to see a five minute industry created video about these changes you can see it HERE.
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