real estate finance - full book (500 pgs)

Some factors included in scoring models include

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Unformatted text preview: tle. There are two basic types of coverage in California–the California land Title Association or CLTA, and the American land Title Association or ALTA. Most lenders require the ALTA policy because it provides additional Dynasty School ( 14-31 REAL ESTATE FINANCE coverage for the lender. Who pays for the CLTA or standard title policy varies in California. For example, it is customary for the seller to pay in Los Angeles and Orange counties; in Contra Costa and San Francisco counties, it is customary for the buyer to pay. There are other counties, such as Merced and San Joaquin, where the cost is split between buyer and seller. In our example, the buyer is paying for the policy. Buyers normally pay for an ALTA policy. However, it must be stressed that regardless of custom, the issue of who pays can always be negotiated. Escrow Fee – The escrow fee is charged for handling and supervising the escrow. As with title policies, custom also tends to dictate who pays the escrow fee. The buyer is paying the entire fee in our example, though in reality escrow fees are often split in some fashion between buyer and seller. Credit Report – The lender obtains a credit report in qualifying a buyer. The cost of the report is usually charged to the buyer. Appraisal Fee– The cost of the appraisal varies with the type of loan and property. Tax Service Fee– This fee is paid to a tax service agency that, for the life of the loan, each year reviews the records of the taxing agencies. If a borrower fails to pay the property taxes, the agency reports this to the lender. If the lender is paying the taxes for the borrower, the agency also obtains the tax bill for the lender. Recording Fees – These cover the cost of recording the grant deed and deed of trust reconveyance. Notary Fees – Signatures on documents to be recorded, such as the grant deed and deed of trust, reconveyance. Pest Control Inspection Fee – The buyer or seller may pay this charge, depending on local custom. The charge varies...
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