If you have ever sold a house, are in the process of selling a house, or are looking to sell a house, then you know that the whole process can become a nightmare. This situation has made many homeowners in Dearborn MI part with their beloved property in tears, especially those who end up selling their homes for far less than their value. Therefore, to save you from the pain and heartache of the issues that can arise when selling your house in Dearborn, you can sell it to REIOutpost LLC. We have a lot of experience buying and selling houses in Dearborn and surrounding cities, so we can guarantee an easy and straight forward closing day.
On our part, we will do everything that is required to ensure a smooth sale. We will introduce you to our home purchasing team and the title company, so you do not have to worry about anything. We will guide you on the documentation required, help you to compile all that you need to close the sale, and reach out to you beforehand in case something is missing.
This post will help you to understand what happens on the closing day after you decide to sell your dearborn home, the people required on the closing day, the costs involved, what a deed of trust is, and what settlement statements are among other things.
Who Is Involved in The Closing-Day Process?
The closing day is arguably the climax of the sale of the property. The people who should be present on the day include:
· The seller of the home
· The buyer of the home
· A representative from the title company
· The buyer and lender’s attorneys
· The lender – He/she is present if the buyer is acquiring the home using a loan.
· The seller’s real estate agent – He/she can only be present if the home was listed
· The closing agent – He/she ensures the necessary documents are available, the collection of escrow payments and fees happens, and that the closing was scheduled.
What Happens at The Closing Day?
The main activity on the closing day is the signing of paperwork, with the buyer doing most of the signing compared to the seller. The title company will prepare documents such as the legal disclosures, the note, and the HUD-1 settlement statement among others beforehand, in preparation for signing on this day. However, the title search and up to date lien payoffs must be available on the day.
The title search proves that the seller of the property is the rightful owner, based on the records available in the public domain. The lien payoffs show whether there is a balance against the property that is still outstanding. The outstanding balance should be paid off on or before the closing date.
Problems that may arise in relation to the title of the property or lien payoffs may force the closing date to be pushed further into the future. However, if there is a solution, the title company should be in a position to resolve the problem and facilitate the closing. Therefore, the company will work towards the ideal closing date between you and REIOutpost LLC.
Once all the documents are ready, the closing company can offer to host the documents signing in its offices or do so at a location that is ideal for both the seller and the buyer. In this meeting, you should make sure to come with a closing attorney, who will explain all you need to know concerning the closing process and respond to any questions you might have. The attorney will review the ownership of the property, the HUD-1 settlement statement, and the deed of trust.
Upon signing the documents, you will state your most preferred method of receiving your money. The transfer of funds can only happen after the signing of all the documents, according to the laws in Dearborn MI.
What Is Title Insurance?
In some instances, a property can develop complications owing to encumbrances, liens, or issues with the property’s title. In order for the lenders, or real estate owners to protect themselves from losses that may arise due to these and more complications, they get title insurance. This insurance also protects against previous owners and events that happened in the past on the property.
This insurance protects the buyer in the event someone, who was not part of the transfer of property, makes a claim against the house. The banks or other lending institutions require this insurance to protect their stake in the property. This one-off payment protects the new owner of the house for as long as he or she owns it.
What Are Closing Costs?
The process of purchasing a home attracts a lot of fees, which are referred to as closing costs. These costs are paid upon the closing of the sale. Some of these costs include title fees, lender costs, escrow balances, interest, transfer taxes, commissions (if any), and more.
What Is A HUD-1 Settlement Statement?
In the process of buying and selling a house, the broker or lender can charge the buyer of the house debits and credits. These charges are outlined and itemized in a HUD-1 Settlement Statement. Others also refer to this statement as a Closing Statement, a Settlement Sheet, or just a Settlement Statement.
Although both the seller and the buyer have to sign this form on the closing day, the buyer is within his/her right to go through the form a day before the closing day. The closing attorney, stationed at the title company prepares this form.
What Is Escrow?
In most cases, the title company usually provides escrow services. This means that the company will hold the documents and money throughout the duration of the transaction. The company holds onto the money the buyer raises following the signing of the sale and purchase agreement.
What Is the Deed of Trust?
In the process of selling a home in Dearborn, the buyer and the seller usually agree to hire a neutral third party to act as the trustee of the property. This agreement is what people refer to as the deed of trust. The role of the trustee is to hold on to the property up until the buyer/borrower pays up all the money required for the transfer of the property. This company holds the legal title of the property.
After closing, but before completing the payment, the borrower is responsible for anything that happens to the property, except in the event that the deed of trust outlines anything to the contrary. For this, the borrower holds an equitable title. The county clerk in Dearborn MI, records the deed of trust as security and evidence of the debt. The recording is a notification to the public that the house has a lien on it.
Upon repayment of the debt, the trustee must transfer the property to the owner and release the lien on the house.