Blog of the Mortgage

**UPDATED** 4-30-10
What a week and a Month. I'm not sure about you but April Showers brought more than just rain. Those late showers seemed to have flooded all of our buyers right out of contract??
That was about as slow a month as I can be comfortable with.
Thankfully I've seen the phones lighting up and the contracts coming back in again. The Tide is turning back in our favor and Spring Buying fever is back..
in the meantime we're only 24 hours in underwriting!
Now if only we could all just pass our state and federal NMLS exams we'll know where we stand for the rest of the year eh?

I sent this email back in early April. Right around the time that HUD also updated their verbiage on Transfer Taxes (Coincidence?).
Thanks to Mike Soldati for pointing me in the right direction.
So, here's the link to the GFE2010 FAQ. Pay particular attention to page 34, re: Block 8. 
here's the Update that would seem to point in our Favor in terms of the seller paying transfer taxes:
GFE - Block 8
1) Q: What is the definition of “transfer taxes”?
A: Transfer taxes are taxes charged by state and local governments on mortgages and home sales based upon the loan amount or sales price and on the property address.
2) Q: How is the transfer tax disclosed in Block 8 of the GFE?
A: The amount the borrower is likely to pay for transfer taxes is disclosed in Block 8 of the GFE. In some areas this amount, as a matter of practice, is governed by state or local laws. If state or local law is unclear or does not specifically attribute transfer tax to a seller or borrower, the amount to be disclosed on the GFE is governed by common practice or experience in the locality of the property.

Speaking of TEAM and because you've partnered with Myself and MY TEAMI would like to share a great document for your use.
As you KNOW (or will after you read this e-mail) regardless of whether the seller is paying the transfer tax (City OR County) the Transfer Taxes (both) MUST be disclosed on the GFE2010.
HUD feels these are buyer related charges regardless of how they are paid.
Remember: GFE2010 is a NATIONAL form (not a regional one) - just sayin' :)
As it turns out, the fact that a sellers pays these taxes comes from local county permissions and Real Estate traditions.In many cases there is nothing written in stone that a seller is required to Pay Transfer taxes of any kind on behalf of the buyer.

So: Download this Documentand NEVER miss another Transfer Tax line item at closing again!
Fewer Errors mean more $$ in your pocket with Raoul Badde & My Company!
 
Have a great weekend!

*********************

Have a great Spring Selling season.

You'll need the following links to download these forms:

Remember to Go out and have fun!

Posted by Raoul Badde on April 9th, 2010 10:04 AMPost a Comment (0)
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