Stockbridge Office
1215 Eagles Landing Pkwy.
Ste. 101
Stockbridge, GA 30281
Stockbridge Office
1215 Eagles Landing Pkwy.
Ste. 101
Stockbridge, GA 30281
A NEW Federal Law will now dictate the closing date on all real estate sales and refinance transactions in which a mortgage is obtained.
HERA- Housing and Economic Recovery Act.
HERA was passed by Congress to protect the consumer and allow more time for the borrower to review specific details of the mortgage before closing.
Four key elements you need to know
If the borrower is financing the property, these new Federal regulatory guidelines will impact and could even DICTATE the closing date.
Historically, borrowers and sellers agreed on a closing date in the sales contract, and then mortgage lenders and closing attorneys would work as best they could toward meeting that date. Going forward, contracts can still be written with a specific closing date in mind, but all parties need to take into account that the closing date may be forced to change due to the new Federal Guidelines of HERA. Some key factors real estate agents, home sellers and homebuyers must know in order to understand the impact this new law will have on their closing date:
Many Lenders will elect to disclose a full 30 days of "Odd-days Interest" and a full 12 months of taxes to prevent a closing delay due to these new HERA re-disclosure requirements.
This could cause some borrowers to need more funds verified for underwriting approval than in the past when actual escrow amounts were used.
HERA is a Federal Law that impacts all Mortgage Lenders nationwide.
The price of protection to the borrower could be delays to the closing date.
What good Realtors should do:
Better Homes and Gardens Real Estate Metro Brokers, Atlanta, GA. A licensed real estate broker in Georgia, North Carolina, South Carolina and Tennessee.
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