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: