Downtown San Diego Condos: RESPA Changes For New Buyers

There are some major changes for buyers in what we call RESPA(Real Estate Settlement Procedures Act) rules. There is a good side and a bad side to these changes. The benefits of the changes is that you will not be hit with major loan cost increases when you close escrow on your purchase. The backside of this benefit is a generation of additional paperwork if changes happen. We just closed an escrow on a unit in Metrome and it was a delayed closing because everytime a change was made, our buyer had to sign another form and write another "hardship" letter. The irony of these changes were that escrow and the lender made paperwork errors and still generated even more paperwork.  In the long run, we think this RESPA change will benefit our buyers. Transition periods are always bumpy but like the Roger Rabbit ride in Disneyland, we buckle ourselves in and sit back to enjoy the ride. The National Association of Realtors offers updated articles that are beneficial to our buyers and our sellers. Here is one such current article. Read and update yourself on these changes.

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  (New!)

  RESPA Rules Limit Fee Increases at Home Closing

  A revamped good faith estimate and HUD-1 settlement form mean fewer last-minute surprises at closing because of limits on fee increases. Read

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Copyright 2010 NATIONAL ASSOCIATION OF REALTORS

This is a series of articles by Sharyn and Victoria Crown, Downtown San Diego real estate agents.