What are Closing Costs and Why do I have to pay them?

What are Closing Costs and Why do I have to pay them? 

This funny 2 minute 44 second animation perfectly explaines everything you want to know and understand about Closing Cost and where they come from...

In Short

Closing costs are the fees and expense due to the lenders, public records and federal title to ensure a legal transfer of ownership from the previous owner/seller to you.  All of which will be summed up on the 'HUD-1' form in your contract. 

 Photo Courtesy: http://youtu.be/fifp2mLGoWc

If you don't want to pay closing cost:

You can Ask your Realtor about the chances of the seller paying all or most of the closing costs.

or

You can ask your lender about the possiblility of building the closing costs into your loan.

What is Mortgage Insurance?

 What is Mortgage Insurance?

'Mortgage insurance is a financial guaranty for the lender that will help to reduce or eliminate a loss in the case of a default by the borrower, and it is almost universally required on loans where there is less than twenty percent equity. That means if you are purchasing a home with less than twenty percent down or refinancing to more than eighty percent of your homes value, you are going to be required to pay mortgage insurance. In other words, mortgage insurance spreads the risk between the lender and the insurance company.'

Courtesy: 'http://www.uwsa.com/what-is-mortgage-insurance '

When can I stop paying it and how do I get rid of it?

Watch below to find out...

What's an REO?

 So you want to help banks pay off some of their deals gone bad by purchasing an REO.

What is an REO?

To answer this we need to know a few things....

 

What is a Short Sale??	'A short sale occurs when a lender agrees to take less than the full loan payoff for an owner's property. In most cases, the owner is in default and is not making their payments for whatever reason. Short sales, in most circumstances, are the first step to avoid foreclosure.' Courtesy: https://www.realtown.com/callchristina/blog/general-real-estate-questions/foreclosures
How does a Short Sale become an REO?	'Although the lender(s) will recover less than the total loan amount in a short sale, they may prefer this in lieu of foreclosure. The costs of foreclosing on a property may be more than the bank's loss by taking a short sale. Also, the property may not sell at auction and then the bank would be forced to take it back as an REO (Real Estate Owned) property, which then they would have to maintain, list and sell themselves.' Courtesy: https://www.realtown.com/callchristina/blog/general-real-estate-questions/foreclosures
Should I sell my house as a short sale?	'Short sales are very complicated and the outcome is not guaranteed. There are so many variables that I can not even cover everything in a couple paragraphs. The bank (lender) is not obligated to take a short sale and in most cases the process to get one approved is cumbersome and frustrating for the Buyer, Seller and the Realtors. Many times these requests are not approved by the bank and the property ends up going to foreclosure anyway. Banks are overwhelmed with short sale requests and the approval process can take months. Each bank evaluates each individual request on a case by case basis. Many times there is more than one lender involved. Not only do the banks consider the borrower's personal and financial situation, but they also consider an appraisal of the property, market conditions, the banks financial situation, their current portfolio and in many cases have to consult with an outside investor who purchased the loan at some point. Given all of these varying circumstances, you can imagine why this process takes so long. Most buyers do not want to wait out this long process and deal with the uncertainty. If a short sale is approved, it can be below market (depending on the bank appraisal), but by the time it's approved the market may have further declined and it may not be a great deal after all. If you are considering selling your home as a short sale, please consult with a CPA and an Attorney first! Realtors ARE NOT qualified to give you the type of information you need to decide if a short sale is right for you.' Courtesy: https://www.realtown.com/callchristina/blog/general-real-estate-questions/foreclosures
What Does REO stand for?	REO means- Real Estate Owned in other works Bank Owned property.  A short sale becomes an REO when a lender, meaning a bank or financial institution like Freddie Mac, makes a failed attempt at auctioning an aproved Short Sale property.  When no one buys the home at the Trustees Sale the bank is forced to forclose on the home, maintain the home and list it for sale as an REO.
What is Freedie Mac and Fanne Mae and how do they fit in the REO process?	Watch this short informative video.... http://www.freddiemac.com/

Grand Opening May 18th, 2013, Murdock Canal 7 City Trail

Grand Opening May 18th, 2013

Murdock Canal 7 City Trail

'The paved trail, known as the Murdock Canal Trail, extends from 800 North in Orem to SR-92 in Lehi and will pass through seven Utah County cities, including American Fork, Cedar Hills, Highland, Lehi, Lindon, Orem and Pleasant Grove. Future expansions will eventually connect the trail to the Jordan River Parkway as well as the Provo River Trail. It will be available for year-round walking, jogging, equestrian use, cycling and skateboarding.'

 Below is a Map of the 17 mile 7 city trail, as well as, the schedule of events for the grand opening. 

'Don’t miss the Murdock Canal Trail Grand Opening, to be held on Saturday, May 18th.

The scheduled opening events are as follows:

8:00 am, Orem City Grand Opening/Ribbon Cutting :

1200 N, 800 E, Orem

• Passport Station Open 8:00 am – 10:00 am
• Celebration Activities, 8:00 am – 10:00 am
• Continental Breakfast, Relay

9:00 am, Lindon City Ribbon Cutting Ceremony:

Lindon View Trailhead, approximately 300 N, 780 E, Lindon

• Passport Station Open 9:00 am – 11:00 am
• Celebration Activities,  8:00 am – 11:00 am
• Family Fun Run, Arbor Day tree planting, 9:00 – 11:00 am

9:30 am, Pleasant Grove City Ribbon Cutting Ceremony:

Wade Springs Trailhead, approximately 600 E, 1100 N, PG

• Passport Station Open 9:00am – 11:30am
• Celebration Activities, 9:00am – 11:30am
• Give-aways

10:00 am, Cedar Hills Ribbon Cutting Ceremony:

3595 West Canyon Heights Drive, Cedar Hills

• Passport Station Open 9:30 am – 12:00 noon

10:30 am, American Fork Ribbon Cutting Ceremony:

Highland Glen Trailhead, approximately 9800 N, 5200 W, AF

• Passport Station Open 10:00 am – 12:30 pm

11:00 am, Highland Ribbon Cutting Ceremony:

Mitchell Hollow Park, 10325 N, 6530 W, Highland

• Passport Station Open 10:30 am – 12:30 pm
• Local businesses will have booths

11:30 am, Lehi Ribbon Cutting Ceremony:

Smith’s Parking Lot, 1550 E, 3500 N, Lehi

• Passport Station Open  11:00 am – 1:30 pm

2:00 pm  Closing Event/Prize Drawing – Lehi (same location)'

To answer more questions, see more photos and learn more information please click on the following link:

http://www.murdockcanaltrail.com/

All information, quotes and photos in this post are courtesy of http://www.murdockcanaltrail.com/