Each business has it’s acronyms. Real estate, I think, has more than any other business. I think we like speaking in code to sound important and impressive or something.
I can just see an agent with a Salem Oregon home buyer.
“Hey that’s an REO over there. It has HDW, FR, LR, DR, and DLB.”
“Great what’s the FMV and my PITI?”
The latest acronyms to permeate the real estate world are HVCC, HERA and HOEPA. I’m a firm believer that when you think people are smarter than you, just throw out a few acronyms to show how smart you are….just kidding, for those of you that may stumble upon this post and not know that I have a very dry, sarcastic sense of humor.
Despite the fact that we now have these extra special acronyms to banty around, they do impact buyers and sellers of real estate in the Salem Oregon area. Because we seem to be in a place where there is no such thing as too many rules, some new real estate rules have been made with regard to lending and appraisals. I won’t go into all the details except for how it impacts you.
In the Salem Oregon area we have typically done 30 day closings. Because of new rules and underwriters being super cautious our closings have been closer to 45 days for the past few months. Now because of the new HERA rules, closings may take 45-60 days. What this change does is require waiting periods in lending for various things. Essentially time for a buyer to look over things and make sure they are comfortable with the disclosures they are being given AND they match what they were told from the get go. What this means is that there will be delays due to these mandated time frames.
Buyers need to be aware of these mandates as do sellers. Longer close times, means the house is off the real estate market for a much longer period of time. It is even more imperative that Salem Oregon sellers look over buyers as carefully as possible to ensure that if they are going to take the house off the market for 60 days, the buyer is really strong. Quick and good communication is going to be even more imperative as small changes in the APR for a buyer trigger new disclosures and waiting time frames.
It is extremely important due to these rules that buyers work with lenders that have excellent communication sills. It is also imperative that buyers and sellers work with local Salem real estate agents that are on top of these new rules. This is not the time to work with an agent that does real estate “on the side.”
If you go up to interview a Salem Oregon agent and you say “tell me about HVCC, HERA, and HOEPA, and they say “huh?” It’s time to move on…
(that would be to me by the way…c’mon you didn’t expect at least one shameless plug in here for business?)