PAPERLESS REAL ESTATE CLOSINGS – COMING SOON?

PAPERLESS REAL ESTATE CLOSINGS – COMING SOON?

TECHNOLOGY HAS LONG EXISTED BUT VARYING LOCAL LAWS AND CLOSING REQUIREMENTS HAVE DELAYED WIDE IMPLEMENTATION!

Bill Payment has become nearly Paperless. Document Sharing seamless via Cloud Computing. Here in Chicago even paying for On-Street Parking only requires an App on your Smart Phone.

But Closing on a Real Estate Transaction still involves dozens of pages of Contract Mortgage and Title Clearance Paperwork. And here in the Chicago area two Real Estate Attorneys are most often involved.

Will this change in the near term? Are Paperless Real Estate Transactions and Paperless Closings inevitable? And . . . HOW SOON?

According to Mary Ellen Podmolik Real Estate Columnist for the Chicago Tribune the first-known E-Closing took place two months ago in Utah. The only physical or "wet" signature was required on the note for this FHA mortgage.

Richard Cordray of the Consumer Financial Protection Bureau lauds the expansion of Paperless Closings. He cites fewer potential paperwork errors minimal surprises at the closing table less closing frustration and anxiety – and of course a shorter and "greener" closing using far less paper.

Major Mortgage Lender Guaranteed Rate based here in Chicago has long embraced taking mortgage applications and completing most processing on line as much as possible. The company uses Skype or similar Video Conferencing Software to make the process more person-to-person. However concerns over possible fraud in a Complete E-Closing Process have slowed the march to becoming 100% Paperless.

Also across the US some County Recorders allow the recording of electronically-signed documents while others don’t. Legal Notarization of E-Signed Documents is also a question not yet resolved in many counties.

Many in Real Estate however agree that Paperless Transactions are on the way however. But likely not right away.

Contact us with your thoughts or to further discuss.

DEAN MOSS & DEAN’S TEAM CHICAGO