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The First Entirely Remote Mortgage Closing Just Happened

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Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
Its about time. The idea that buying a home is some mystical experience and requires everyone and their agents to sit at a table for two hours like they're at a seance is nonsense. Its especially true for a refi. They're houses; essentially a commodity anymore; a roof over your head for a while before you move to the next one.

I can buy a $50K car online, finance it online, have it shipped to my door.

If I buy the same $50K house, it takes a month and a dozen people have to get their grubby fingers in the pie and collect a fee. And then you get the pleasure of the closing.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Its about time. The idea that buying a home is some mystical experience and requires everyone and their agents to sit at a table for two hours like they're at a seance is nonsense. Its especially true for a refi. They're houses; essentially a commodity anymore; a roof over your head for a while before you move to the next one.

I can buy a $50K car online, finance it online, have it shipped to my door.

If I buy the same $50K house, it takes a month and a dozen people have to get their grubby fingers in the pie and collect a fee. And then you get the pleasure of the closing.


Yes, but you can buy a car without DHS having to background check you, and the IRS tracking down the buyer for witholding taxes on you, if you were a foreigner.

That plus the amount of paperwork some states require to buy real estate is beyond the tolerance level of most people. Put it on line and they'll just read the first page or two and sign off on the next 50 pages without comprehending/reading/caring what any of it is, until of course, something blows up in their face. Then, they'll look for someone else to blame.


.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
I leased a new car, took me a 30 minutes to buy it, 60 minutes to close it when I took delivery.

I bought a new house, 100-page new construction agreement, 1 hour to buy, 1 hour to close. I. didn't mind presenting two pieces of ID and being present.

MarkK said, "If I buy the same $50K house, it takes a month and a dozen people have to get their grubby fingers in the pie and collect a fee. And then you get the pleasure of the closing."

We all saw the broker, loan officier, appraiser, escrow scams that hit a few years ago because of the low doc federal programs because of the recession. Millions lost and lots of prison time.

Locally, one of the scams was someone comes into a real estate offices, says they own a vacant lot, list it for sale, and walk away with the proceeds of a sale (identity thief).

I like some checks and balances for a significant assets. Not everyone is honest.
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
We all saw the broker, loan officier, appraiser, escrow scams that hit a few years ago because of the low doc federal programs because of the recession. Millions lost and lots of prison time.

The low doc programs didn't cause and the high doc programs didn't prevent the last real estate meltdown. Criminals and deadbeats will find a way; always have, always will and the losses caused by them are calculated into the interest rate.

Checks and balances are great but that's a call for the lender. The online closings are coming, the same as the increase in loans made based on AVMs. Not saying all sales should be handled this way but many can and should be.


And as far as reading the first page or two of a 50 page document, that's what happens at closings today. Actually, from my experience, the VAST majority of people don't read even the first page. Doesn't matter if its online or in person. I've sat thru probably 200-300 closings in my life. Of those, exactly ONE person actually read the entire mortgage and supporting documents.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
And as far as reading the first page or two of a 50 page document, that's what happens at closings today. Actually, from my experience, the VAST majority of people don't read even the first page. Doesn't matter if its online or in person. I've sat thru probably 200-300 closings in my life. Of those, exactly ONE person actually read the entire mortgage and supporting documents.


:ROFLMAO:

I concur.

But nothing like getting screwed by an online corporation, and then looking for someone to "make it right".

I don't want to advocate for a Nanny state. But in matters of finance, I do believe it to be necessary to most, not all.

.
 
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