Buying an REO (or Real Estate Owned) property is a little different escrow process than your standard home sale. REALTORS and buyers need to remember that they are in escrow with a bank/lender (the “seller”) and that the bank/lender has strict procedures in place to follow during the process. Here’s a glimpse into details to look out for if you’re in an REO transaction and American Trust Escrow is your escrow provider:

1. Escrow isn’t officially open until the seller has uploaded the contract into the seller’s online systems, it’s been signed by both the buyer and seller, and it shows as a “task” in the seller’s online system to open escrow.
2. Escrow instructions, preliminary title and commission orders will be e-mailed 48 hours from the receipt of the seller’s fully executed contract.
3. Loan documents must be received 24 hours before the buyer’s appointment to sign.
4. Expect to wait up to 5 days from the buyer’s signing date for escrow to receive the estimated HUD approval from the seller.
5. Once approval is obtained, the file is set to record the following business day after the lender’s funds have been received.
6. Funds are usually distributed 24-72 hours after recording.  This timing is subject to seller’s approval of the final HUD statement.

Also important to keep in mind is that communication with American Trust Escrow regarding your transaction is generally most efficient via email.  Email communication provides a written record and time stamp of the communication and allows your escrow officer to respond in a timely manner.

Understanding these details can help to set the proper expectations with buyers and help ensure that your next REO escrow goes as smooth as possible.

Interested in what you are reading? To automatically receive these Escrow Tips in your email box, subscribe to these articles at the top right corner of this site (www.ateblog.com) in the box titled “Subscribe via Email”.

Every Tuesday, here at the American Trust Escrow blog, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.

Build your online brand with your avatar? Your what? Wondering what an avatar even is? Here is a hint:

Avatar is a fancy word for the small image used to depict your online presence or identity. It is a very important part of any REALTORS’s online presence and branding. When you create a profile on a social media website, they often ask you to upload a photo of yourself. This photo is your avatar – most REALTORS would think of it as their head shot. But should your avatar be your head shot? Maybe, but maybe not.

Here are some things to consider when choosing your avatar:

• Your avatar sets the tone for who you are. What do you want it to say? It should be a reflection of you. It is the first visual that people generally see of you. Put some thought behind it. Keep in mind that it does play a part in defining your personal brand online. What do you want your personal brand to say?
• Keep in mind that the digital world is generally more casual than the print world in marketing yourself. I suggest portraying a professional, yet approachable image of yourself. It does not need to be of you in business formal attire (of course, it can be).
• The image will most often be presented very small, and cropped to a square. Very frequently the image will be only a ½ inch square. It will often appear as part of a list like this example from Facebook.

• Your avatar should be close up to your face. Because of the small size that most Avatar’s are presented, it is generally best to have the photo be cropped tight.
• It is ok to get creative! Your avatar doesn’t have to be your face (but most REALTORS will likely choose this option). Also, think about getting creative with your cropping. You’d be surprised how well you can communicate you with just part of your face. For some additional options check out this Guide To Using Avatars for Online Marketing by Justin Smith of the Real Estate Tomato.

Take a look at the sample avatars at the beginning of this post and a few more below. These are all appropriate guides for REALTORS who want to brand themselves online and participate in the social media game. Give your avatar some thought – make sure your photo fits the medium, communicates what you want it to say, and is a reflection of you. It will be good for your brand and your business!

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.ATEBlog.com) in the box titled “Subscribe via Email”.

Closing fees are a prickly part of any real estate deal. This is where everybody involved in the sale and transfer – lenders, lawyers, government agencies, and the escrow company – add their numbers to the bottom line. Perhaps the worst thing about closing fees is that they often seem to come as a surprise. This can lead to anger and frustration for the buyer and seller, and inconvenience and headache for agents.

Escrow fees are part of a deal’s closing costs. Let’s explore the typical fees that can show up on a buyer’s closing statement, and help to avoid future cases of sticker shock.

Buyer’s Escrow Costs

Escrow Fees

This is the fee for the escrow service itself, usually a certain amount per $1000 of the sale price. With the escrow fee you are paying to make sure:

• The escrow agent is properly licensed in your state
• They have the knowledge, training and expertise to handle supplemental and unusual escrow situations
• Your escrow process follows all applicable laws, and the sale will be legal and valid
• The escrow agent is an independent third party, competent and trustworthy to caretake and disburse your money.

Loan Tie-in Fee

This fee provides for the escrow company’s time and supplies to print out lender documentation, comply with various lender requirements, and fill out and submit the forms and applications requested by lenders to facilitate the transaction.

E-Document Fee

More and more documents are being sent to escrow companies over the Internet, however they still need to be printed out in order to be archiveable and useful. This fee helps to defray document printing costs.

Processing Fee

Very few escrow situations come without any supplemental or unusual needs. Spouses, ex-spouses, grantees, trustees, business partners, extra government agencies or authorities, all may need to be dealt with in order to facilitate the escrow. All of these contacts take time and documentation. Most escrow companies include one or two added contacts in their escrow fee; a significant number of added contacts will result in a processing fee.

Archive Fee

Legal escrow documents need to be stored by the escrow company for a minimum of five years. This fee helps with the storage and retrieval of the large volume of paperwork involved.

Seller’s Escrow Costs

The seller’s closing statement contains escrow costs as well. The seller will have the same Escrow fee as the buyer, the same Processing and E-Document fees, and an Archive fee.

Closing costs from the escrow company are not a mystery, and don’t need to be a surprise, either. With a little bit of preparation and a phone call or two, both buyers and sellers can know in advance what their closing costs will be, and clear a potential obstruction on the way to a completed sale.

Every Tuesday, here at the American Trust Escrow blog, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.

A year ago, when I would introduce “Twitter” to a group of agents, it would be the first time REALTORS® had ever heard the word.  Today, thanks to an explosion of Twitter users in the media and entertainment world, most have at least heard the term.  But, I still usually get the question, “What is Twitter anyways?”.  And, once I explain Twitter, many are left trying to figure out if it is relevant for use in their real estate business.  This post is designed to define what Twitter is.  Future posts will discuss what the value is in Twitter and investigate if there is any value for real estate agents.

What is Twitter:

I like to explain twitter as “broadcast texting“.  Basically, you type a short message, and when you hit send, it broadcasts out that message to everyone who chooses to “follow you” (people can choose to receive your twitter updates).  So, if you have 200 people following you, that one message will simultaneously go to all 200 people.

Some important details to understand about Twitter:

• Twitter is a social network
• Messages are called “tweets”
• Messages/Tweets are limited to 140 characters (Twitter is often defined as “micro-blogging.  For a better understanding of blogging, check out our post on What is a Blog & How Does it Relate to Real Estate)
• Tweets answer the question “What are you doing” (Twitter asks this on the website)
• You can use twitter from both the web and from your cell phone.
• The service is free.  Note however, that if you use the service via text from your cell phone, you may have charges associated with it depending on the texting plan you have with your carrier.  Once I started really getting into Twitter, I invested in an unlimited texting plan on my cell phone.

If you are still not clear about what Twitter is, other’s have done a great job explaining Twitter.  Here are some links to others explanations:

• Common Craft has a video explanation of Twitter that appears on the Twitter website.
• About.com answers “I just don’t understand Twitter“
• Tweeternet answers “What is Twitter and Why Does it Keep Following Me Around“
• Real-Tech Guy does a nice job of explaining how to get started with Twitter

Also, Nicole Nicolay of MyTechOpinon.com has written the definitive guide on using Twitter for real estate.  It is a free ebook you can download and it is outstanding.  If you are ready to get started with Twitter, or already have an account and want to learn how to best use it for real estate, you won’t find a better source.

This post lays out a definition of what Twitter is.  I can tell you that Twitter is my absolute favorite social network.  Twitter provides me a new form of communication that I didn’t know I needed and it has transformed my business communication and networking activities.  Future posts will expand on the value that Twitter provides and introduce strategies to successfully use it in real estate.  For now though, if you want to get started with Twitter, go to Twitter.com and sign up for an account (it is very easy and requires minimal information from you).  Then, follow me (my Twitter id is @staceyharmon) and follow Jerel Taylor, one of your American Trust Escrow Business Development Team members (@jerel_taylor).  By watching our “tweets” on Twitter , you’ll start to get a feel for what this “Twitter thing” is all about!

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.ATEBlog.com) in the box titled “Subscribe via Email”.