Investing In Real Estate and New Regulations
Investing in Real Estate - The Benefits of New Regulations to Home Buyers - What You Need to Know
By Jack Sternberg
Did you know that the "closing instructions" (the instructions each Title company needs to follow when closing on a property) vary from state to state?
And did you know that's all about to change when the new Uniform Closing Instructions go into effect?
These new regulations are about to change the way you can structure your real estate deals. They were designed by The American Escrow Association, The Mortgage Bankers Association, and The American Land Title and Trust Association who decided to standardize the instructions to make the whole closing process work better.
Real estate investors interested in pre foreclosure investing, flipping properties and creative real estate solutions should be concerned about how these new regulations are going to restrict their ability to turn a profit. However, here's a list of the benefits of these new regulations to homeowners:
Benefit 1: The UCI speed up the Single Family Home real estate buying process and make it more cost effective. E.g., previously, if a retail home buyer changed lenders midway in the process it would always prolong the closing due to the different guidelines from a different lender. The new standards would prevent delays of this sort by providing a set of closing guidelines for ALL mortgage lenders.
Benefit 2: The UCI will cut costs by providing efficiency. It's interesting to note that buying a luxury automobile that costs $200,000 can take an afternoon, while buying a condo that costs less takes at least 30 days. That's due to the efficiency in standardized loan docs in the auto industry. (Though no one suggests that you should try to buy a house in an afternoon!)
Benefit 3: The UCI will help protect borrowers from mortgage fraud. Specifically, there's a whistleblower clause in the UCI that charges the loan professionals to make known to the borrower any suspect dealings in the transactions, and can make them liable for not disclosing such misdealing.
Benefit 4: The UCI will help protect borrowers from identity theft.
Benefit 5: The UCI will help pave the way for automated processes in the industry, including new, online E-mortgages, and reduce the expenses of operation for mortgage companies.
Benefit 6: Create a fiduciary responsibility for all title companies to abide by and protect the mortgage companies. This would essentially compel title companies to be at the vanguard of mortgage fraud defense and help protect the mortgage industry.
Once put into place, the UCI will have two profound effects:
First, the committee feels these instructions will give consumers a gold-standard protection against fraud without need of Congressional action.
Second, (and here's where you really need to pay attention), it will spell the end of "non-traditional" deals-short sales, flip sales, double closings, etc. This means there will be a shift back to conventional mortgage practices and "traditional" investment strategies.
To find out more, claim your free report below, which reveals what you need to know NOW about these new regulations. The more prepared you are for what lies ahead, the more opportunities you'll have to make money investing in real estate. Those who are left in the dark about these new regulations may find themselves leaving the closing table without a check..
Jack Sternberg is a nationally recognized expert on real estate investment who's been in the business for more than 30 years. His deals have totaled over $750 million.
Get the full FREE 48-page report, "The Uniform Closing Instructions Exposed: Critical Factors You Need to Know In A Dramatically Changing Real Estate Investing Environment" at http://www.uniformclosinginstructions.com while it's still free.
Article Source: http://EzineArticles.com/?expert=Jack_Sternberg http://EzineArticles.com/?Investing-in-Real-Estate---The-Benefits-of-New-Regulations-to-Home-Buyers---What-You-Need-to-Know&id=1925761
Investing In Real Estate
By Jack Sternberg
Did you know that the "closing instructions" (the instructions each Title company needs to follow when closing on a property) vary from state to state?
And did you know that's all about to change when the new Uniform Closing Instructions go into effect?
These new regulations are about to change the way you can structure your real estate deals. They were designed by The American Escrow Association, The Mortgage Bankers Association, and The American Land Title and Trust Association who decided to standardize the instructions to make the whole closing process work better.
Real estate investors interested in pre foreclosure investing, flipping properties and creative real estate solutions should be concerned about how these new regulations are going to restrict their ability to turn a profit. However, here's a list of the benefits of these new regulations to homeowners:
Benefit 1: The UCI speed up the Single Family Home real estate buying process and make it more cost effective. E.g., previously, if a retail home buyer changed lenders midway in the process it would always prolong the closing due to the different guidelines from a different lender. The new standards would prevent delays of this sort by providing a set of closing guidelines for ALL mortgage lenders.
Benefit 2: The UCI will cut costs by providing efficiency. It's interesting to note that buying a luxury automobile that costs $200,000 can take an afternoon, while buying a condo that costs less takes at least 30 days. That's due to the efficiency in standardized loan docs in the auto industry. (Though no one suggests that you should try to buy a house in an afternoon!)
Benefit 3: The UCI will help protect borrowers from mortgage fraud. Specifically, there's a whistleblower clause in the UCI that charges the loan professionals to make known to the borrower any suspect dealings in the transactions, and can make them liable for not disclosing such misdealing.
Benefit 4: The UCI will help protect borrowers from identity theft.
Benefit 5: The UCI will help pave the way for automated processes in the industry, including new, online E-mortgages, and reduce the expenses of operation for mortgage companies.
Benefit 6: Create a fiduciary responsibility for all title companies to abide by and protect the mortgage companies. This would essentially compel title companies to be at the vanguard of mortgage fraud defense and help protect the mortgage industry.
Once put into place, the UCI will have two profound effects:
First, the committee feels these instructions will give consumers a gold-standard protection against fraud without need of Congressional action.
Second, (and here's where you really need to pay attention), it will spell the end of "non-traditional" deals-short sales, flip sales, double closings, etc. This means there will be a shift back to conventional mortgage practices and "traditional" investment strategies.
To find out more, claim your free report below, which reveals what you need to know NOW about these new regulations. The more prepared you are for what lies ahead, the more opportunities you'll have to make money investing in real estate. Those who are left in the dark about these new regulations may find themselves leaving the closing table without a check..
Jack Sternberg is a nationally recognized expert on real estate investment who's been in the business for more than 30 years. His deals have totaled over $750 million.
Get the full FREE 48-page report, "The Uniform Closing Instructions Exposed: Critical Factors You Need to Know In A Dramatically Changing Real Estate Investing Environment" at http://www.uniformclosinginstructions.com while it's still free.
Article Source: http://EzineArticles.com/?expert=Jack_Sternberg http://EzineArticles.com/?Investing-in-Real-Estate---The-Benefits-of-New-Regulations-to-Home-Buyers---What-You-Need-to-Know&id=1925761
Investing In Real Estate
Labels: investing, profits, real estate, real estate investing business, regulations
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