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Vocabulary Lesson 7

vocabulary property guiding

Lesson 7

 

Contract and Closing vocabulary… sometimes a word gets mentioned and you just scratch your head, well…..scratch no more!!

 

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FHA “Flipping”

If you’ve ever flipped a home, or thought of flipping a home, you’ll want to constantly stay informed.  The real estate industry is constantly changing.  We just got the news that FHA (Federal Housing Authority) extended the “flipping” waiver through 2014!   FHA  has a rule that forbids “flipping” – executing a new sales contract for a home with an FHA-insured mortgage in 90 days or less. Read the rest of this entry

PRORATION OF FEES AT CLOSING

Buying Your Home
Settlement Costs and Helpful Information
http://www.hud.gov

III.  YOUR SETTLEMENT COSTS

C. Adjustments To Costs Shared By Buyer and Seller

At settlement it is usually necessary to make an adjustment between buyer and seller for property taxes and other expenses. The adjustments between buyer and seller are shown in Sections J and K of the HUD‑1 Settlement Statement.  In the example given above, the taxes, which are payable annually, had not yet been paid when the settlement occurs on July 1. The borrower will have to pay a whole year’s taxes on the following December 1.  However, the seller lived in the house for the first six months of the year.  Thus, one ­half of the year’s taxes are to be paid by the seller.  Accordingly, lines 211 and 511 on the HUD‑1 Settlement Statement would read as follows: Read the rest of this entry