Tip 8-2015: For REO Purchases, Choose Your Own Settlement Attorney

Tucker's Tips especially recommends choosing your own (local) settlement attorney or settlement agency when purchasing from an REO seller.  Never choose the settlement agent selected by the bank as the seller.  That settlement agent's primary relationship is with the REO bank. 

Recently Tucker's Tips encountered a closing situation where the REO selling bank had prepared the new deed based on the deed description from three owners prior!  Needless to say, the "Being" clause and the deed were completely wrong.  In this case Settlement was not delayed because the closing paralegal on the purchaser's side spotted the discrepancy while reviewing the proposed deed and comparing it to the property description in the title work and binder.  (Had the purchaser selected the bank's settlement agent, this error would have gone undiscovered as the bank's settlement agent prepared the incorrect deed.)

Remember, the REO seller's offer of "free" title insurance is not really "free", as it requires using the REO's choice in settlement agency which can create a whole host of unnecessary problems.

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello
434-973-7474
www.TGBLaw.com

Tip 7-2015: TILA-RESPA Integrated Disclosure Rule

On August 1, 2015, the TILA-RESPA Integrated Disclosure Rule from the Consumer Financial Protection Bureau becomes effective. What will it mean for lenders, realtors, consumers and the closing process?

This new rule, which applies to most closed-end consumer credit transactions secured by real property, is designed to streamline the currently required four disclosure forms, originally developed by two different Federal agencies into two, more user friendly forms.   The Good Faith Estimate and the initial Truth-in-Lending disclosure have been combined into a new form: the Loan Estimate. The HUD-1 and final Truth-in-Lending disclosure have also been combined into a new form: the Closing Disclosure. Mortgage brokers and lenders, who receive a new application for such a transaction on or after August 1, 2015, must provide the new Integrated Disclosure forms.

These changes could result in significant delays to the closing process as we now know it. For example, last minute changes to the HUD ("Closing Disclosure" after August 1) will require a three day delay, in order to provide the required three day notice under the new rules.

It will be more important than ever for all involved: lenders, consumers, realtors, settlement companies and attorneys to stay flexible and communicate with each other during this time of transition.

 
Stay tuned to Tucker's Tips for more on the new TILA-RESPA Integrated Disclosure Rule!

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello
434-973-7474
www.TGBLaw.com

Tip 6-2015: Can an AFD Affect Subdivision of Property?

Recently, Tucker's Tips heard about an executed contract that was contingent on the property being subdivided. As everyone proceeded towards closing, no one knew that the property was in an Agricultural and Forestal District or "AFD" for short.

AFDs are rural conservation zones established voluntarily by landowners with their local government (county or in some cases city or town) to conserve, protect, and foster the development and improvement of lands for the production of food and other agricultural/forestal products. AFDs have restrictions about development and subdividing the lands within the districts. Information on whether or not a property is within an AFD is not recorded in the Clerk's Office and therefore not revealed by title work. This information can usually be found at the county or city community planning and development office and guidelines and rules for AFDs are likewise found in county or city Code as well as the Agricultural and Forestal Districts Act of Virginia established in 1977.

In the above scenario the parties found out before settlement that the property was in an AFD and that it could not be subdivided according to the AFD's strict rules. But this was only after both the Purchaser and Seller had spent thousands of dollars in surveying costs, appraisal, and inspections. The deal died in the end.

If you intend to develop or subdivide a property, check with your local County Planning or Development Office first to see if the property lies within an Agricultural Forestal District.

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello
434-973-7474
www.TGBLaw.com

 

 

Tip 5-2015: February Holiday

All local Clerk's Offices and banks will be closed on Monday, February 16^th for Presidents' Day. In addition, many other offices (attorneys, surveyors, and title companies) will also be closed for this federal holiday.

For closings, this means that if the deed needs to be recorded before the Buyer can occupy, try to schedule the closing for Thursday February 12^th, or as a last resort, early on Friday the 13^th. If the deed is not recorded by Friday afternoon, the Buyer may have to wait until Tuesday to occupy.

Possible Alternative Strategy: Arrange for the Buyer to get his keys once the Buyer has signed all of his loan documents and delivered his money to the closing attorney.

Also, depending on the winter weather forecasts, it is quite possible that offices will either open late, close early, or close entirely if the weather is bad enough in the next few weeks. Accordingly, all parties need to be on their toes and remain flexible when it comes to upcoming closings. Be sure to check with individual offices (Clerk's offices, attorneys, settlement companies, banks, etc.) to verify if the office is open. If we all work together, we can reach success even in complicated times!

  

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello
434-973-7474
www.TGBLaw.com

Tip 4-2015: Recording a Deed? The Clerk Rules!

Effective January 1, 2015, Clerk's offices may refuse to record a deed or other document if the last names are not differentiated by capitalization or an underscore from the first name. So, the first name may be lower case, and the last name upper, like this: John DOE. Or, if both the first and last names are capitalized, the last name must also be underscored, like this: JOHN DOE. This only applies to deeds and documents recorded without a cover sheet.

If you aren't familiar with a certain Clerk's rules for recording, it's best to call that Clerk's Office. Better yet, make sure you use a local real estate professional, already familiar with the procedures of the local Clerk's Offices. It can make the closing process that much smoother!

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello
434-973-7474
www.TGBLaw.com

Tip 3-2015: Still Great Time to Refinance!

Interest rates are still currently the lowest they have been in eighteen months. According to most predictions, interest rates may go up later in the year. Given that fact, now is a great time to refinance for a lower interest rate. Also decreasing the loan term to twenty or fifteen years may make sense.

There are numerous local experienced lenders with excellent loan products for refinances. Encourage your family, friends, prior clients, and future clients to take advantage of this opportunity by discussing their specific situation with a local lender. A refinance at a lower interest rate will usually mean lower monthly payments and more disposable money to help stimulate the economy, a win win for everyone.

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello
434-973-7474
www.TGBLaw.com

Tip: 2-2015: January Holidays

Just when we thought the holidays were over, the Clerk's Offices will be closed for a long four day weekend. This Friday January 16, 2015, the Clerk's Offices will be closed for Lee-Jackson Day. Then, on Monday, January 19, they will be closed again for Martin Luther King, Jr., Day. (All banks and government offices will also be closed on Martin Luther King, Jr., Day, while Lee-Jackson Day is still a work day for most.)

Therefore, all recordings need to be completed by Thursday, January 15, 2015 or they will have to wait until Tuesday, January 20, 2015 to be recorded. After these holidays, the Clerk's Offices will be open for the normal five day week, unless of course there are "snow days" to shorten the week.

 

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello
434-973-7474
www.TGBLaw.com

Tip 1-2015: Debt Forgiveness Passed!

On December 3, 2014, the House passed a number of tax breaks that expired at the end of 2013. Included in the tax breaks is the Mortgage Debt Relief Act or Debt Forgiveness Act. On December 16^th, the tax breaks passed the Senate and the President sign the bills.  The retroactive extension goes back to January 1, 2014.

The Debt Forgiveness Act helps homeowners who either experienced a short sale or a foreclosure. When a Borrower sells his home for less than what is owed, the bank may agree to forgive the deficiency. Normally, the debt that is forgiven is taxable as ordinary income. If the forgiven debt meets certain conditions, with this tax break, there will be no taxable income to the Borrower who has just lost or short sold his home.

Borrowers should contact their CPA or tax professional in order to understand how this tax break may or may not affect the filing of 2014 taxes.

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello
434-973-7474
www.TGBLaw.com

 

Tip 38-2014: Clerk's Office Schedule for the Holidays

The local Clerk's offices will be closed on Wednesday December 24^th, Thursday December 25^th, and Friday December 26^th for Christmas. All recordings prior to Christmas must be completed by Tuesday December 23^rd. The Clerk's Offices, as of now, will be opened the full day on Tuesday December 23^rd (No half day Tuesday office hours, but this could change for individual Clerk's Offices).

For the following New Year's week, all of the Clerk's offices will be closed Thursday January 1^st and Friday January 2^nd. Although none of the Clerk's offices have announced closings for New Year's Eve, to be safe, be sure to check with your local Clerk's office. Even if the offices are open on Wednesday December 31^st, expect them to close early. Accordingly, Tuesday December 30^th may be the last day of the year to record anything.

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello
434-973-7474
www.TGBLaw.com 

37-2014: Scam Alert

Tucker's Tips has recently become aware of a new scam involving a notice from "Virginia Council for Corporations."

An entity is posing as the Virginia State Corporation Commission and is attempting to solicit money from companies and corporations. The entity sends official looking notices to companies and requests $125 to file annual reports that go to the State Corporation Commission.

The SCC has received numerous inquiries regarding the notices and has even posted an alert on their website. According to the SCC, "A search of the Commission's business entity records in the Clerk's Office revealed no information about a company with the name Virginia Council for the Corporations."

The SCC advises, "Any corporation that has questions about the solicitation of form is encourage to obtain advice from its lawyer or business advisor. Also, the Clerk's Office can be contacted at (804) 371-9733 or 1-866-722-2551 (toll-free in Virginia) for information about corporate annual report and other business entity filing requirements under Virginia law."

P.S. See following links for an example of the solicitation notice and the alert posted by the SCC.

 

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello
434-973-7474
www.TGBLaw.com