Sub2 Closing Costs
I may be purchasing my first property sub2. I will be having my attorney helping me with the closing. Can anyone tell me if my list of things here is about right?
- Reviewing purchase agreement
- Reviewing Trust Document
- Preparing Deed
- Preparing real estate transfer return
- Recording deed (maybe)
Am I missing anything here that my attorney might have to do? I am not getting title insurance. I dont want to be surprised with any hidden costs.
Your attorney should tell you to have a title search done. Never know what deeds the seller has signed or liens against the property. Also get seller to sign affidavit of debts and liens just incase something comes up later.
Good LUCK and Thank You
Hope this helps some
Ted Jr
do record the Deed....that is not an option.
Yes I plan on getting a title search just not insurance.
LOL. Sorry I meant maybe I will record the deed instead of him. Good catch though.
okay good... From the looks of it, you've covered everything.
Make sure you get Authorization to Release Information signed along with a Power of Attorney. You may also want to prepare a Payoff Letter from the sellers to the bank and leave the payoff date blank. If you get it now, it'll make things easier down the road.
Ok thanks.
What is the payoff letter for?
when your buyer refinances, the closing agent will need a payoff letter from the lender. Without this, the agent will not know how much to give the lender to satisfy the loan. Something simple as:
From:
Loan Number:
SSN:
Phone Number:
To:
Fax #:
We are requesting a payoff letter for loan number ______________________, the payoff date is ________________________. Please fax the payoff letter to ____________________, Attention __________________________________. Thank you for your cooperation.
will do it.
ok. so I will get this signed by my seller and just hold it until my buyer refi's?
yeah. and I only say to do this now because maybe down the raod, you may not be able to get in contact with them. And since you'll have the Power of Attorney, you could sign for them on the payoff, but it's eaiser to have them sign the letter now and just fill in the date later. I dealt with a assholic lender and they tried to give me a hard time because I am not an Attorney...he was just being a ..... anyway, point is, get the sellers signature on the payoff letter and call it a day.
Ok thank you very much
Apply the 5P rule. - Proper Planing Prevents Poor Performance.- You are doing a good job asking all this questions. Let us know how that deal goes! Good luck. [ Edited by omega1 on Date 02/02/2004 ]