FLEMINGTON, N.J. (October 25, 2010) - The Department of Housing and Urban Development (HUD) has significantly changed its requirements for real estate closings, adding to the complexity of property transactions and prompting Cortes & Hay, Inc. of Flemington to offer a new program called the "Attorney Assist."
"HUD's Real Estate Settlement Procedures have really made the closing process more difficult than ever," said Cortes & Hay President David Hay. "The closing statement now is very complex and actually requires special computer software to handle properly. Some attorneys were considering getting out of the business because of the new regs, but homebuyers still want lawyers involved in their closings so our Attorney Assist program basically allows attorneys to focus on the true legal work. We take care of everything in the middle."
Local attorneys and real estate agents seem to like the program."The Cortes & Hay Attorney Assist has definitely helped to facilitate the closing process," said Clinton attorney Mark W. Yaros, Esq. "We can focus on true legal issues such as negotiating the contract to ensure the client is protected. Previously, we would get bogged down with minutia and client calls on how to deal with inspections and other issues that can really be handle by the title company."
RE/MAX Competitive Edge Real Estate Agent Cathy Krohg of Clinton sees other benefits in the Attorney Assist program."The process of buying and selling homes should be a good experience on both sides because both buyers and sellers are completing a major event in their lives," said Krohg. "Having Cortes & Hay manage the details that come in between the signing of the agreement and the transfer of ownership really helps minimize any bumps in the road. Acquiring or selling a home is never easy, so having their expertise is invaluable."
The Real Estate Settlement Procedures Act (RESPA) governs one-to-four family residential real estate closing procedures where financing is provided by an institutional lender in connection with a purchase or refinance or subordinate mortgage. RESPA regulations set the guidelines for Good Faith Estimate of closing costs to match actual final costs as well as the use of specific HUD forms for settlement statements.
"RESPA regulates the closing process and the way statements look," said Hay. "It's a complex process that can be frustrating for many attorneys because they start to wonder if it makes economic sense for them based on their time commitment. We pride ourselves on making a complex process look easy."
Since its formation in 1971, Cortes & Hay has become a cornerstone of the real estate business not just in Hunterdon County, but statewide. The company is experienced in residential, commercial and industrial title insurance throughout New Jersey and Pennsylvania with satellite offices in Hoboken and Easton, Pa., where it operates as ABCO of Northampton, LLC. For more information on Cortes & Hay, please visit www.corteshay.com or call (800) 239-4952.