HAZARDS OF RUNNING AN ESCROW DESK
This month’s story is not one that affects us directly, nor were we put in a position that we had to contemplate committing hara-kiri or even (gasp!) pay miscellaneous costs out of pocket, but it is a short and concise story of what we do see happen on our desk, more often than we like.
Here it is:
The Buyer signed their loan docs and we overnighted them to the Lender for funding immediately.
The next morning:
11:30 a.m. – Funder to us: “The loan commitment expires today and since I didn’t get the docs, I have to put in for an extension and charge additional fees. “
11:35 -Us to funder: “We sent it by overnight last night and we called the overnight service to confirm. The package was delivered to your office at 8:00 a.m. this morning and it looks like it was your signature on the receipt acknowledgment.”
Funder to us: “Oh. Let me look for it.”
1:00 – Funder to us: “Found the package. I guess I signed for it but put it aside. Sorry, I don’t have time to look over the docs at this late time. I still have to extend the loan commitment. I will need to charge the Loan Broker $500.00”
1:10 – Broker to funder: “Hey! We were not the cause for the delay! The package was delivered to you in sufficient time to review and fund. You can’t charge us because you put it aside and forgot!”
1:15 – Funder to Broker: “Sorry, lock expired and if your Borrower wants the loan, you have to pay.”
END OF STORY.
COMMENTS ON THE FED RATE HIKE
It’s been so long since the Fed raised their rates that everyone is wondering how it will hit us in the real estate industry.
Here is my take on it:
The hike will raise interest rates, but minimally, and well within the 5% for a SFR owner occupied loan.
The rise will happen slowly, through the upcoming year. Hopefully, Sellers will now realize that it is time to lower their expectations and the high prices they are seeking is not attainable.
Hopefully, Buyers will be shaking off the dirt from their boots and realize their decisions to purchase must be made now.
Hopefully, equity continues to build and Borrowers will realize that the hike is minimal and continue to try and refinance and take money out to make more purchases.
Hopefully…. Hopefully… Real Estate Wars Episode IV – A New Hope.
Does anyone reading this blog remember the days of 19-21% interest rates?
NO DEGREE? NO PROBLEM!
Did your Millennial child come home this holiday and tell you that he/she does not want to go back to school?
It will not be the end of his/her world, much less yours. You may have a harder time kicking him/her out of the house, but there are jobs that bring home a nice piece of bacon that doesn’t need a college degree.
Here are 50 of the highest paying jobs, that do not need that degree, just hard work, dedication and a good attitude.
Along with a variety of workman trade occupations, these includes choreographers, food service managers, real estate agents, creative writers and financial service agents.
I didn’t see “escrow officers” on that list but then I realized we are the secret industry that no one knows anything about.
And if you go to www.careertrends.com you can find more lists related to career categories.
No “escrow officers” on the “28 Most Stressful Jobs” either.
They need to update their list. Have they never read my Hazards of Running the Escrow Desk?
CAN THE MILLENNIAL AFFORD THE HOME?
Once the Millennial has settled into their career of choice they will look to move out of your home or rental and this is where they need to first check out these home affordability stats in their purchase location of choice.
Mind you, this is only for 2015 figures; I can only imagine that 2016 stats are higher.
Will they be earning enough monthly to afford the new home?
Are parents going to have to help out with the downpayment in order for the Millennial to afford that kind of monthly payment?
It’s good to know that your Millennial will be a part of the demographic that the National Association of Realtors wants to target for their first home.
And isn’t it a good thing that FHA loan limits are going up?
FHA LOAN LIMITS GOING UP IN 2017
Yes! Yay! Finally! This will help your child and the housing economy for sure.
Just like the rise of cost of living standards, FHA lending amounts also have to keep up with the Joneses and meet the reality of housing needs at this time.
AND IF RENTING IS STILL PART OF THEIR VOCABULARY
Here is a chart breaking down the cities with the biggest rent hikes.
You just might want to take a detour around those areas….
WHAT INTERNS MAKE AT MAJOR COMPANIES
But, if that Millennial did go through and finish that degree in a lucrative field, well, the world becomes their oyster.
My nephew is interning at a big investment banking company, doing analytical programs for major investment portfolios of their big clients (or something like that) and so obviously, nosy family members are wondering how much he makes fresh out of the paddock.
LOOKIE LOOS AND THEIR MOUSE:
While you are looking for that perfect home, join the crowd who let their mouses (mice?) do the clicking and look at the 10 most popular homes for sale that everyone clicked on at realtor.com.
Yea, I bet that of all links to stories that I provided this month, most of you will have clicked on this one.
Or this one, showcasing the amenities of living at TRUMP TOWER.
The Hollywood Reporter? Okay, now I am really scrounging to find interesting stories…
A Happy 2017 to all!
Quote for your new year:
“Live long and prosper!”
̴ The indomitable and logical Mr. Spock ̴
Stardate 2230.06 – 2263.02 (alternate reality)