This year thousands of homes will fall out of escrow, thanks to Uncle Sam Obama.

The American Dream, blasted by the Administration

Once again lawmakers in an attempt to protect consumers, have shot themselves in the foot. Stumbling down the path to economic recovery.

As a Real Estate Professional, I receive hundreds of junk E.Mails a week. Yes, I checked, my filters are on.

Today I received a notification from Wells Fargo. In bold letters at the top of the notification,Wells stated that as of July First., it would become even tougher to close a real estate transaction in a timely manor. Not good news.

Thousands of R.E. transactions a month are falling out of escrow. Time line is the number one cause of a buyer walking away from the purchase of a property. Disclosure reports, Appraisals, and loan underwriting is simply taking too long. Buyers are walking away in disgust. It's too bad . Now, agitate the buyer with the delay that the Federal government has added to the closing process. All in the name of protecting the consumer. We have regulated the residential real estate market into a tail spin.

Anyone that is breathing, acknowledges that we are in a screaming buyers market. Good deals abound. Prices have receded to 2004 levels and beyond. There has never been a better time to buy a Home. The icing on the cake is an $8,000, first time home buyers tax credit, for those that qualify.

In the past, a transaction could be completed in twenty to thirty days. A forty five day escrow was the exception. In today's lending regulatory environment, it is not uncommon to approach and sometimes surpass 60 days.

Much can happen in 60 days. A buyer's financial statement, as well as bank statement must be up to date prior to funding. Most clients find the constant, insistent financial probing to be less than pleasant. As it is, the escrow/ loan process is akin to a visit to the dentist office. Not fun.

In today's notice from Wells Fargo, it was relayed that HOEPA, Home owners equity protection act, and HERA , Housing and economic recovery act, would complicate, as well as extend the process time lines, to levels not previously seen..

Oh yes, and then of course HVCC, Home valuation code of conduct. Realtors and mortgage brokers are no longer allowed to communicate with appraisers. Sounds good on the surface. But pool appraisers are not always aware of local neighborhood market conditions. resulting in a below market appraisal. This can also kick a sale out of escrow.

According to the memorandum, one should set aside no less than 45 days for the closing event. And that's if everything goes smoothly. Example : A change in the interest rate of no more than .25% will effectively start the notification process over. Adding no less than three business days to the process.

What this means to you as a potential seller is that your home will be tougher to sell. As a buyer, your close date will become an uncertainty., with all the possible ramifications.

Once again, the Federal government, in the name of the people, and with the blessings of the U.S. Congress, has effectively shot itself in the foot. Your government at work.

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