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.

When you open your internet browser window, wouldn’t it be nice to see something useful? Is there a site you visit every time you browse the web? If so, wouldn’t it be helpful to have that set as your home page on your browser? It’s very simple to change and this week’s tech tip is designed to show you how to do that.

Some suggestions of sites that might be relevant to a REALTOR to set as your default home page:

• Your MLS login screen (are you at the computer mostly to check the MLS?)
• ATEBlog.com (new tech tips and escrow posts will automatically appear on your homepage!)
• AgentGenius.com (real estate magazine)
• MyTechOpinion.com (tech magazine for the real estate industry)
• Google.com (the search engine – good one to choose because it loads quickly)
• WSJ.com (leading business and financial news)
• InmanNews.com (real estate news)
• Realtor.org (NAR’s REALTOR site)

First step is to pick a default home page. Select one from the list above or select your own (ANY website will work).

Once you decide what site you want, follow these step by step directions on how to change your default home page to something useful.

Most of our readers are on PC’s and using Internet Explorer, so these directions are geared towards them. If you are on a Mac and in Safari, directions can be found here and if you are using Firefox, you can find directions here.

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The Buyer’s Choice Act (AB 957) was established to protect the buyer’s right in an REO transaction in having a choice as to which Escrow Company and Title Company is used. This sounds great, although in many cases it can be a benefit to the buyer to choose the companies that the REO Bank use on a regular basis for the following reasons:

• The REO Banks require the settlement companies to use their online systems (only the companies selected by the REO Banks are given authorization to log onto the online systems) in order to obtain necessary documentation for your transaction. Without access to the online systems there may be delays in the closing process.
• The REO Banks have special internal requirements that must be completed before they can move forward to closing. The Escrow Companies and Title Companies used by the REO Banks know the requirements and are able to provide the seller with the necessary items in advance therefore getting the job done quicker and more efficiently.
• The Title Companies that work with the REO Banks have documentation already in place that is necessary to clear the title on the properties. Using Title Companies that work with the REO Banks creates a much smoother transaction process for you.
• The REO Banks must approve an estimated HUD settlement statement prior to authorizing the close of escrow. In order to accomplish this each REO Bank has special requirements for certain items they need prior to approving said settlement statement. All these items again must be sent to the seller via their online systems. Using the companies that know the REO Bank’s requirements helps to get your transaction completed much quicker and smoother.
• Each REO Bank is different and has different requirements. Using an Escrow Company and Title Company that has experience with that particular Bank’s requirements will inevitably make your transaction smoother.

For further information on the Buyer’s Choice Act you can read the following article: AB 957 “The Buyers Choice Act” Passes

When making your choice or accepting the seller’s choice of escrow or title companies, consider asking the following questions to the prospective companies:

1. Do they retain an Errors & Omissions Insurance Policy and a Fidelity Bond each with a minimum of $2,000,000 which protects your transaction to the fullest value?
2. Do they conduct background checks on all new hires through the Department of Justice including stockholders, officers, directors and managers?
3. Are Potential employees barred if they have drug convictions, moral turpitude or theft of any type on their record?
4. Do they have set minimum financial requirements by their licensing entity?
5. Are their trust funds and processing of files audited by their licensing entity, or in-house auditors and CPA?
6. Are their trust funds balanced every day?
7. Is their computer systems capable of handling the paperless file required for processing an REO transaction?
8. Are they proficient in a variety of REO software platforms?
9. Do they have an extensive back up computer systems, which includes a disaster preparedness plan?
10. Can they handle all transactions in a professional, honest and diligent manner?

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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.

In today’s post, I wanted to bring to your attention one of the most outstanding resources out there for Realtors who are looking to stay informed on all things technology in our industry: MyTechOpinion.com.

Their tagline says it all “Technology for Real Estate”. Topics covered range from Blogging, to Hardware, to Marketing, to Software, to Social Media and beyond. In their own words:

At MyTechOpinion we dig through ALL those technology offerings to identify key products and services to benefit your real estate business. Let us be your real estate technology knowledge base.

Some of my favorite posts include (and ones that I think are particularly useful for today’s Realtor):

• 10 Social Media Lifeskills for Real Estate Professionals
• 4 Ways to Access Your Files Remotely (having trouble getting all your files in one spot?)
  
• A Real Estate Presentation in the Palm of Your Hand (highlights small, hand held projectors – digital listing presentation anyone?)
• How Neat Are Your Receipts? (discusses a product called Neat Receipts which helps you stay organized – think write offs!)
• Some Like it Hot [But Your Laptop Doesn't] (think an inexpensive laptop cooling pad might be helpful with that Desert heat?)

They also have a great resource list for those who are ready to get started in social media marketing. Make life easy on yourself…they’ve already done the hard work for you and presented the best social media sites and technologies in an easy to understand list which sifts through the junk and highlights the best.

The authors of MyTechOpinion (Nicole Nicolay, Reggie Nicolay, and Chad Johnson) are recognized social media pioneers and respected industry professionals. In my opinion, this is one site that should be on the radar of any Realtor looking to keep up with technology today.

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To help consumers more easily understand settlement costs and prevent big price discrepancies between the preliminary Good Faith Estimate and the HUD-1 settlement statement, the U.S. Department of Housing and Urban Development (HUD) has created stricter Real Estate Settlement Procedures Act (RESPA) regulations are scheduled to take effect by April, 2010. (The regulations originally were to take full effect on January 1, but HUD provided a four month respite for compliance to the industry.)

For a review of what RESPA is, see our prior blog post.

New RESPA Rules

The upcoming Real Estate Settlement Procedures Act (RESPA) Reform requirements aim to provide customers with the essential information and adequate time to understand their home purchase and refinance options. HUD is requiring that loan originators provide borrowers with a standardized Good Faith Estimate (GFE) which clearly discloses key loan terms and closing costs.

The loan industry, in an effort to dissuade consumers from shopping for a loan, created separate Good Faith Estimates for each company, so that consumers could not equally compare costs. With the new standardized GFE, consumers now will have a chance to compare “apples to apples” when looking at competitive loan products.

In a busy year of reforming the mortgage industry, there are new federal governmental regulations called the Mortgage Disclosure Improvement Act (MDIA) (see below) which went into effect in July of this year. To clarify why RESPA and MDIA are related, if a lender is out of compliance with the MDIA, they are subject to a RESPA violation. The new standardized GFE, the MDIA, and stricter RESPA laws will all assist consumers in understanding the complexities of the mortgage process.

While HUD requires the RESPA Reform regulations to take effect in 2010, many lenders have begun implementing the required changes early. We, at American Trust Escrow, have experienced that interpretations of the RESPA Reform requirements vary from lender to lender and as a result have caused delays in closing. Below is information about the MDIA from an attorney that specializes in RESPA law to help clarify the new requirements which will assist in closing transactions on time.

Compliance with Mortgage Disclosure Improvement Act/RESPA Requirements:

1.The 3/7/3 Rule requires a seven business day waiting period once the initial disclosure is provided before closing a home loan (business days are everyday except Sundays and Holidays). This means that before a borrower can close on a transaction the borrower must receive the initial Good Faith Estimate (GFE) and initial Truth in Lending (TIL) statement disclosing the final Annual Percentage Rate (APR) seven days prior to closing.

2. If the final annual percentage rate is off by more than .125% for a fixed rate loan or .25% for an ARM loan, from the initial GFE disclosure, then the lender must re-disclose and wait yet another three business days before closing on the transaction. Note: If the rate fluctuates EITHER WAY, up or down, more than .125% on a fixed or .25% on an ARM, the re-disclosure takes effect.

3. Lenders are forbidden from collecting money for appraisals, loan applications, etc. prior to the delivery of the truth in lending statement. Lenders can only collect the credit report fees from the borrower at the time of prior delivery of the final TIL. No other fees are permitted to be collected at the time of the application. If the TIL is sent by mail, additional charges can occur after the 3rd business day after the borrower receives the TIL in the mail.

4. The following language must be clearly written on the initial and final TIL: “You are not required to complete this agreement merely because you have received these disclosures or signed a loan application.”

5. Any Lender or Settlement Service Provider found in violation of the new RESPA regulations will have 30 days after the close of escrow to correct any errors and compensate the consumer for any overage.

What do these new MDIA/RESPA regulations mean to a Realtor?

Plenty. These rules help the buyer make sure that their lender does not say one thing and then do another. Here is how Realtors can help their clients:

* Make sure to check the initial Good Faith Estimate and Truth In Lending form for a buyer and look for discrepancies in charges. The new rules were put in place to protect consumers from being low balled one figure by a loan officer only to find out at the closing table that the fees charged were much higher. The new MDIA rules will absolutely delay closings if these steps are not followed carefully.

* Buyers, sellers, and real estate professionals should not schedule a closing until the borrower has completed the seven day waiting period as required in the initial Truth In Lending statement.

* Contact your Escrow Officer for an Estimated Settlement Statement as soon as the Good Faith Estimate is available. Many lenders do not contact escrow for fees and/or recurring closing costs.

To learn more, go here for the new RESPA rule FAQ’s and here for the RESPA final rule.

Go here to learn more about the 120-day delay in the RESPA regulation enactment.

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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.

If you are a REALTOR that wants a “leg up” on the competition, you are off to a good start. By reading this weekly technology tip series, you will be introduced to an array of tools that will help you be informed and stay a step ahead. One of my goals with this series is to introduce you to other great websites that will help you continue your education about the industry and allow you to evolve with it.

This week, I’m bringing to your attention to AgentGenius.com – a online real estate industry magazine that discusses “what’s hot in technology, new and inventive real estate business models, the nature of the real estate industry, hot topics that impact consumers and so much more…”

The site has great contributors including a host of agents who are actually making money by applying social media techniques to their real estate business. You will also find content related to real estate coaching, ethics, marketing, tech & new media, mortgage, and more. The days of the Realtor magazine delivered via snail mail have evolved. You can now get up to the minute articles and discussions about what is happening in the industry right now. It is a great site!

And I’m not the only one who thinks so. Inman News awarded them an Innovator Award for 2008. So, AgentGenius.com is definitely a site to watch, one to bookmark, and if you are so inclined, one to subscribe to (just like you can or have subscribed to this one – why not have the information come straight to your email?! – if you have no idea how to do this, just send an email to stacey@staceyharmon.com and I’ll be happy to help you).

Happy reading!

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The typical real estate escrow requires the buyer to sign 70 – 120 pages of documents, several of which require notarization. The seller also will have to notarize, at the minimum, the grant deed. Notarization, or the act of an uninvolved witness (the Notary) verifying that the signor (the buyer or seller) is indeed who they say they are, is an essential part of the escrow process. And, if notarization is not properly done, it can cause delays which can impact the closing of the escrow. When it comes to notarizing documents during escrow, clients can choose to go to the escrow office or hire an outside notary.

Option 1: Notarize and sign at the escrow office

Escrow offices all have a notary on staff. Therefore, a common option for notarizing documents is to have the parties go to the escrow office to sign documents. With customer satisfaction as our highest priority, at American Trust Escrow we prefer that our clients physically come to our office to sign closing documents. This not only ensures that buyers and sellers feel they are receiving the highest level of service, but also we can personally correct any errors that may have been overlooked by the many parties involved in the transaction as well as answer any questions that may arise.

However, circumstances do not always allow for clients to sign at the escrow office (for example, in the case of an out of town buyer). When this occurs, working with an outside notary is the alternate solution.

Option 2. Notarize and sign with an outside notary

If you are to hire an outside notary, you have two options: A Certified Document Signor or a Mobile Notary.

Both Certified Document Signors and Mobile Notaries are certified by the State of California to verify signatures. However, a Certified Document Signor also undergoes regular continuing education training specific to real estate transactions. They are familiar with the documents that are signed in the transaction. Mobile Notaries are not required to have this specific training and as a result, are not always familiar with the documents that are being signed.

A Certified Document Signor will cost more, but clients should be aware that our most common reason for the delay of a transaction is due to the incorrect signing of closing documents. With the amount of paperwork that needs to be signed and notarized, it is easy to see how someone without the proper training could overlook a detail here or there. As a result, Certified Document Signors are our preferred option if the client is not able to sign in person at the escrow office. That said, it is possible to have an accurate and successful closing with a mobile notary. The choice is really up to the client and will be impacted by many factors specific to the transaction.

So when choosing, ask yourself what is more valuable in a real estate transaction, your time or your money? If time is not of paramount concern, a mobile notary may be a great choice for you. If it is imperative you close on time, your risk of signing issues will decrease by going with a certified document signor. And, if you have the ability to sign at your escrow office, you will run the lowest risk of delays.

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”.

Become a fan of American Trust Escrow on Facebook and follow us on Twitter.

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.

I love Posterous. It’s my new favorite must-have application for the modern Realtor. If you are a Realtor, and you want to have a personalized, real time web presence for your real estate business, but don’t know how to get started, Posterous is your solution. Before I get into why, let me introduce what Posterous is.

Posterous describes itself as “The dead simple place to post anything.” By creating a Posterous account, you instantly create a web presence for yourself that lets you post anything to it – photos, articles, videos, MP3′s, files (such as word documents, pdf’s, etc). There is no easier way to create a blog for yourself and your real estate business (if you’d like some background as to why this might be valuable for your real estate business, check out my earlier posts on social media, web 2.0, and social networking for real estate). And posting is EASY, making Posterous the most attractive blogging option to the novice user, while still being an outstanding and powerful resource for the techiest of agents.

Why do I love Posterous so?

First: It’s easy. It’s simple. (You can do this. Really. You Can.)

If you can email, you can use Posterous. In its simplest form, all you have to do is email whatever you want to post to post@posterous.com, and it is done. Doesn’t get much easier than that.

Simply tell Posterous what your email account is, and it will know that when you send an email to them, the content is to appear on your Posterous blog. And, if you have multiple email accounts (for example, a brokerage account, a personal account, a gmail account, etc.) you can tell Posterous all your email addresses and it will post to your site no matter which email account you send from.

In addition, there are multiple ways to update your Posterous site from both your PDA cell phone and from your computer. This makes Posterous easy to use whether you are in the office checking out the MLS, or out in the field working an open house or showing property. Here are the options for how to update your Posterous Page:

1. From your PDA cell phone:

• Email whatever you want to post to Posterous and it will automatically post to your site.
• Text in your post via SMS (maximum post size is 110 characters…even a busy Realtor can manage that!)
• PicPosterous: If you have an iPhone, you can download the free PicPosterous application which further simplifies the process of posting photos to your site, and organizes the pictures on the site into photo-galleries allowing the user to preview multiple thumbnail images and select the one they want to view larger (see an example on my site here).

2. From your computer:

• At your Posterous.com website: Simply create a new post and type in what you want to say.
• From your email: Email whatever you want (including file attachments) to Posterous and it will post to your site.
• Use the Posterous Bookmarklet: This is a Posterous application that will let you grab photos, video, audio and text right out of the web pages you’re looking at, comment, and post it to your posterous blog.

Second: Posterous looks good.

Social media is really a brand building opportunity for Realtors. And, part of that opportunity is the visual design of how you are represented online. Posterous has a simple, elegant, and clean design that is professional and will display you and your content in an attractive manner that is good for your business image.

Third: It’s Free.

There is no charge to use Posterous. By creating a Posterous account, you create a free website for yourself. And everyone like free, right?! Over time, Posterous will be adding premium features, but they state in their FAQ “…there will always be a useful free version you can use.”

Fourth: It’s branded to you.

When you sign up for a Posterous account, you will select a vanity URL that can be branded to you. So, for example, my Posterous URL is: staceyharmon.posterous.com. Assuming it’s available, you can have YourName.posterous.com or PalmDesertProperties.posterous.com or WhateverYouCallYourBusiness.posterous.com.

Fifth: Posterous integrates with other social media sites.

One of the most powerful features of Posterous is the ability to auto-post to ALL of the social media sites that are most relevant to Realtors, all at the same time. This includes:

• Facebook
• Twitter
• Flickr
• WordPress
• Blogger

So, for example, if I take a photo of a listing that I am holding open and want to send that to Posterous with a note that says “I’m holding open 123 Main Street from 12-4 today…come on by and say hello!”, I can choose to have that photo and message sent (with one email) to Posterous, and concurrently to Facebook, Twitter, Flickr, and my WordPress blog. This is powerful and efficient stuff!

How to Use Posterous For Your Real Estate Business:

Posterous is the best way for Realtors to get started in social media and in blogging. The possibilities for using Posterous for your business are only limited by your creativity. The goal is to give people a glimpse inside your life as a working Realtor, in real-time. Here are a few ideas to get you started. At the minimum, your Posterous site is an outstanding place to post photos…of your neighborhood, of your listings, of your life as you experience it (why not post photos of your office, or of your team as they are out showing listings?). Position yourself as a trusted real estate advisor by sharing with people relevant information related to real estate in your market. Post market reports for your farm (simply scan what you get a hard copy of at your sales meeting and email it to Posterous, or post a PDF of one that is emailed to you).

Check out my Posterous account here (which I use primarily as a photo blog site) and then sign up for your own. Give it a try. And let me know what creative ways you come up with to build your real estate business with Posterous. I want to hear your great ideas!

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What is the Statement of Information?

Upon the opening of escrow, Buyers and Sellers receive their initial escrow package – the Statement of Information (also known as the Statement of Identity) is included in this package for completion and return to the escrow holder.

The statement of information is a one page document which requests the party’s name, date of birth, social security number, current and previous addresses etc.

Who requires the Statement of Information?

The Title Company of record requires this completed form to ensure successful and expedient transfer of title. This document assists in eliminating untimely delays in closing of real estate transactions.

How does the Statement of Information work?

The Statement of Identity establishes and confirms identity. Confirming identity will assist the Title Company to eliminate/resolve matters that affect real property such as child support liens, judgments, bankruptcies etc., filed against persons who have the same or similar names.

This is important as such liens and judgments are recorded against real property and against individuals on a daily basis.

Why Should Buyers/Sellers Complete the Statement of Information?

Consider these scenarios:

Scenario #1: Seller is Robert Smith. The title company runs a name check on Robert Smith. Title company finds recorded liens and judgments filed against a Robert Smith that must be paid.

How will title eliminate our Seller, Robert Smith against these potential liens? Title will compare social security numbers, previous address, etc. (as per Statement of Identity) to determine which Robert Smith is liable for payment of said liens/judgments.

As result, our Seller Robert Smith has been eliminated as the potential party owing thousands of dollars due to liens.

Scenario #2: Buyer/Borrower is John Williams. Once again, title runs a name check and discovers that a John Williams has defaulted on his child support payments. Upon further investigation it has been determined that YES this is our Buyer/Borrower. Now escrow has the heads up to advise their Buyer/Borrower to bring his account current and also escrow can then secure an updated statement that will be sufficient for title transfer.

In conclusion:

The title company requires that buyers/borrowers and sellers fill out the Statement of Information to be able to complete their fiduciary duty to return clear title for the real estate transaction. The documents the title company requires comes from the escrow company after it has been completed by the Buyer or Seller, so your Escrow Officer can discuss the Statement of Information with you. Each transaction is case specific. Your Escrow Officer can clarify the points that are needed to finalize the transaction.

If the Statement of Information requirements give you cause for discomfort, talk to your Escrow Officer about the specific needs of your escrow. Your Escrow Officer will be able to explain the Privacy Act Notice with which American Trust Escrow is in compliance.

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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.

Google is used by millions of people every day to search for everything, including real estate. The buzz at the recent Inman Connect Conference in New York City, was the importance of search and being found on Google by your potential customers. To help Realtor’s do that, Google has created “Google for Real Estate Professionals”, a special section just for agents looking for the tools and tips to harness real estate search capabilities. Go to Google.com/realestatetools and there you will find Google’s suggestions for utilizing Google Maps, AdWords and YouTube to connect to your potential customers.

As Google states on the site:

“The majority of home buyers use the Internet to research properties. Google makes it easier for real estate professionals to connect with home buyers and renters at every stage – while they’re looking for properties, checking out locations and selecting their agent. It’s how you reach more sellers, attract more buyers and sell more homes.”

Here is a summary of the real estate lead generation options Google highlights:

• Google Maps puts all parts of the property picture together. It’s a free service and one that makes your listings easier for home buyers to find. Are you uploading your listings to Google? Get more information on how to best do this at Google’s FAQ for Real Estate Agents and Brokers. Also, agents should not overlook services like Real Estate Shows where as part of your membership, you can create a property flyer via a simple, templated process, and have that flyer syndicated not only to Google, but also Trulia, Zillow, and other top listing sites.
• AdWords (Google’s paid search results program, also know as pay per click advertising) provides effective and efficient lead generation for real estate professionals. Set whatever budget you are comfortable with, target your ads by demographics and geography, and reach potential buyers and sellers at the precise moment they are looking for properties or agents.
• YouTube: Are you showcasing your listings in video, on your own branded YouTube channel? YouTube isn’t another TV screen, but a window into your business through which viewers can learn about your properties, your people and your ideas. For real estate professionals, it means your listings can sell themselves and home buyers can do a virtual walk-through of potential homes before they contact you.

The site also provides excellent information about using Google Analytics and Insights for Search. The tutorials are well written and easy to understand.

Learning how to best position yourself and your real estate business on Google is fast becoming the critical business skill of the modern Realtor. Google has just made understanding it all a bit easier for the industry with this portal. It’s worth a look.

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”.

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