SUMMARY OF “TOP BROKER PANEL” DISCUSSION
HELD FEBRUARY 10, 2010
COBB WOMEN’S COUNCIL OF REALTORS MEETING
PINETREE COUNTRY CLUB
Moderator: Mary Helyn Hagin
Telfair Brokers
Participants:
Brad Nix – Maxsell Realty
Jeanne Linden – Harry Norman Realtors East Cobb Office
Deborah Blue – Keller Williams Realty Atlanta North
Charlotte Steed – Remax Greater Atlanta Realty
Below is a sample of remarks made by the panelists at the above referenced panel discussion. I would hope that my note taking skills did not lead to any significant mistakes on my part. If any of the participants feel that they have been misquoted, please send me and e-mail or phone call and I will make any necessary corrections.
Question 1: What advice would you give to new realtors entering the business?
Brad: Approach it like a business. We are not here to look at houses or show wallpaper.
Charlotte: Purchase Brian Buffini’s 100 days to greatness
Deborah: List to last – Price it right
Jeanne: Must have a passion for what you do. We are selling the American dream.
Question 2: What advice would you give to the more seasoned agent?
Deborah: Begin with a positive mindset. Get back to the basics. Get back to training.
Find coaching. Get an accountability partner. Find your niche. Don’t watch
the news.
Charlotte: Get more training. Take a class. Never too late to learn new things.
Jeanne: Get back to basics. Contact your data base. More training. Go with new
business realities. For instance, don’t say that you are not going to participate
in short sales. Find positive people. Get to the office.
Brad: Redefine your USP “Unique selling Position”. What is it that makes you better
than your competition?
Question 3: How long until the market recovers?
Brad: Ten years for commercial
Charlotte: By 2014 the numbers will be back but not the prices. There is currently a 12
year supply of unbuilt lots in Paulding and a 7-10 year supply in Cobb
county.
Jeanne: It depends on the area. Some areas, such as the Walton district, are doing better
than others. As respect to an overall recovery, at least several years, maybe
never.
Deborah: 10 years. Cobb county is in a lot better shape than many other communities.
Some other tidbits I picked up.
From Jeanne regarding the fact that normal sellers are having to compete with short sales and foreclosures. Sellers may only have three options in the market. “Rent, reduce, or remain.”
From Brad recommending the following computer sites. Guerilla marketing (gmarketing.com) for marketing ideas, nutshellmail (nutshellmail.com) for integration of social marketing services, and you mail (youmail.com) and google voice for translation of voice mails to text.
Charlotte highly recommends the Brian Buffini training series. She also presented the group with several handouts including a personality profile.
Sunday, February 14, 2010
Friday, February 5, 2010
Here is a copy of the letter I sent to several representatives regarding the proposed changes in Georgia Mortgage laws
Honorable gentlemen and ladies of the legislature:
I have been a residential real estate attorney for more than 20 years. My father, who passed away in September, was a real estate attorney for more than 40 years. We have lived through the Jimmy Carter years when interest rates were at 17 or 18%. We survived the early 80s with the Savings and Loan implosion and the RTC. However, I can easily state that the last 24 months have been the most difficult times I have ever experienced in this industry.
Our industry has been battered and bruised as a result of the financial meltdown caused by the sub-prime mortgage debacle beginning in 2007. I would estimate that fully 2/3 of the people who were employed in our industry and earning good livings when the crisis began are now out of the business. Certainly some of these people did not deserve to be employed in positions of financial responsibility, however, most of the persons I know who have been let go are honest and capable hard working employees who were caught up in a mess that they had nothing to do with.
The second half of 2009 has shown some improvement with the first time home-buyer credit and the willingness of lenders to again make loans to credit worthy buyers. Major changes have been implemented by HUD beginning in January, 2010 and these changes have caused problems for everyone in attempting to implement them. I had two closings postponed on Friday due to software glitches with the lenders in attempting to comply with the GFE and HUD-1 requirements. HUD is implementing new guide lines almost weekly which make it harder to qualify for a mortgage loan.
FHA has become the only option for borrowers with less than stellar credit. Their market share of loan originations has probably risen from 10% to about 50% of all loans originated since the lending crisis began. Lenders are afraid to make new loans. The pendulum has swung so far from the excesses of the sub-prime market to an excruciating analysis of the most credit worthy buyers. There are so many federal government programs aimed at the mortgage crisis right now that it is difficult to keep track of them all. It is nearly impossible to convey the sense of overwhelming change taking place every day in our industry.
I was deeply disturbed when I read the AJC article of January 23 whereby it indicated that efforts were being made at mortgage reform in the 2010 General Assembly session under SB 57. The provisions of this proposed bill seem to be ill advised and indicate that its authors are out of touch with the current home lending environment. The first provision of SB 57 seeks to ban yield spread premium (YSP). RESPA regulations which went into effect January 1, 2010 now state that YSP may only be used to benefit the borrower. This would appear to now be a non-issue and that by banning YSP the legislature would foreclose the option of borrowers to seek a lender paid closing cost loan which, in many cases, is an excellent option for borrowers.
The bill also seeks to ban pre-payment penalties on sub-prime loans and make brokers the agent of the borrower for these types of loans. The reality of the market place is that sub-prime loans no longer exist. I closed approximately 700 closings in 2009. I do not recall a single loan transaction that I would consider less that a prime loan. As I stated above, the only option that now exists for borrowers with less than outstanding credit is an FHA loan. They are generally not available to borrowers with less than a 620 credit score and the requirements are being tightened all the time due the huge losses experienced by FHA.
The idea that the broker should become the agent of the borrower is simply ludicrous. So long as the broker acts within the stringent requirements of Federal law they should be exempt from any further level of responsibility with respect to the borrower. HUD has also required that all brokers obtain a national license to originate loans by this spring which will further thin the ranks of our state’s hard working mortgage professionals.
I don’t have a particularly strong opinion regarding the proposed tightening of our foreclosure procedure. I have made a conscious decision not to participate in that area or practice. It may be time that we took another look at our statute and made a few changes. At this time lenders are not rushing to foreclose and that the federal government is continuing to tinker with the situation through HAMP and similar programs. We certainly don’t need to throw any further changes at lenders now.
In conclusion, I would ask that the legislatures understand that our industry is teetering under unprecedented conditions. Now is not the time to consider mortgage reform. The state has many more urgent matters to deal with in my opinion. I appreciate you taking time to read my letter. I publish a weekly e-mail article which goes out to about 700 real estate professionals. A copy of this letter will be part of the next edition. If anyone would care to discuss this further I may be reached by e-mail or at my office.
Thank you,
Ken Chalker, Jr.
Attorney at Law
770-509-9799
State Bar No. 005570
Honorable gentlemen and ladies of the legislature:
I have been a residential real estate attorney for more than 20 years. My father, who passed away in September, was a real estate attorney for more than 40 years. We have lived through the Jimmy Carter years when interest rates were at 17 or 18%. We survived the early 80s with the Savings and Loan implosion and the RTC. However, I can easily state that the last 24 months have been the most difficult times I have ever experienced in this industry.
Our industry has been battered and bruised as a result of the financial meltdown caused by the sub-prime mortgage debacle beginning in 2007. I would estimate that fully 2/3 of the people who were employed in our industry and earning good livings when the crisis began are now out of the business. Certainly some of these people did not deserve to be employed in positions of financial responsibility, however, most of the persons I know who have been let go are honest and capable hard working employees who were caught up in a mess that they had nothing to do with.
The second half of 2009 has shown some improvement with the first time home-buyer credit and the willingness of lenders to again make loans to credit worthy buyers. Major changes have been implemented by HUD beginning in January, 2010 and these changes have caused problems for everyone in attempting to implement them. I had two closings postponed on Friday due to software glitches with the lenders in attempting to comply with the GFE and HUD-1 requirements. HUD is implementing new guide lines almost weekly which make it harder to qualify for a mortgage loan.
FHA has become the only option for borrowers with less than stellar credit. Their market share of loan originations has probably risen from 10% to about 50% of all loans originated since the lending crisis began. Lenders are afraid to make new loans. The pendulum has swung so far from the excesses of the sub-prime market to an excruciating analysis of the most credit worthy buyers. There are so many federal government programs aimed at the mortgage crisis right now that it is difficult to keep track of them all. It is nearly impossible to convey the sense of overwhelming change taking place every day in our industry.
I was deeply disturbed when I read the AJC article of January 23 whereby it indicated that efforts were being made at mortgage reform in the 2010 General Assembly session under SB 57. The provisions of this proposed bill seem to be ill advised and indicate that its authors are out of touch with the current home lending environment. The first provision of SB 57 seeks to ban yield spread premium (YSP). RESPA regulations which went into effect January 1, 2010 now state that YSP may only be used to benefit the borrower. This would appear to now be a non-issue and that by banning YSP the legislature would foreclose the option of borrowers to seek a lender paid closing cost loan which, in many cases, is an excellent option for borrowers.
The bill also seeks to ban pre-payment penalties on sub-prime loans and make brokers the agent of the borrower for these types of loans. The reality of the market place is that sub-prime loans no longer exist. I closed approximately 700 closings in 2009. I do not recall a single loan transaction that I would consider less that a prime loan. As I stated above, the only option that now exists for borrowers with less than outstanding credit is an FHA loan. They are generally not available to borrowers with less than a 620 credit score and the requirements are being tightened all the time due the huge losses experienced by FHA.
The idea that the broker should become the agent of the borrower is simply ludicrous. So long as the broker acts within the stringent requirements of Federal law they should be exempt from any further level of responsibility with respect to the borrower. HUD has also required that all brokers obtain a national license to originate loans by this spring which will further thin the ranks of our state’s hard working mortgage professionals.
I don’t have a particularly strong opinion regarding the proposed tightening of our foreclosure procedure. I have made a conscious decision not to participate in that area or practice. It may be time that we took another look at our statute and made a few changes. At this time lenders are not rushing to foreclose and that the federal government is continuing to tinker with the situation through HAMP and similar programs. We certainly don’t need to throw any further changes at lenders now.
In conclusion, I would ask that the legislatures understand that our industry is teetering under unprecedented conditions. Now is not the time to consider mortgage reform. The state has many more urgent matters to deal with in my opinion. I appreciate you taking time to read my letter. I publish a weekly e-mail article which goes out to about 700 real estate professionals. A copy of this letter will be part of the next edition. If anyone would care to discuss this further I may be reached by e-mail or at my office.
Thank you,
Ken Chalker, Jr.
Attorney at Law
770-509-9799
State Bar No. 005570
Tuesday, December 29, 2009
The Chalkeboard - Issue 1
THE CHALKBOARD
NEWS AND NOTES FROM CHALKER & CHALKER, P.C.
PREMIER ISSUE
Welcome to the premier issue of “The Chalkboard.” The last few years have been challenging ones for those of us in the real estate business. 2010 should provide a new set of challenges and opportunities. The purpose of this newsletter is to provide useful information to real estate professionals as well as highlight the services our firm provides. The premier issue is being sent to approximately 250 real estate professionals. I would ask that you forward this issue to several of your colleagues so that they may benefit from the information that will regularly be appearing here.
This issue is meant to serve as an introduction to “The Chalkboard” and to briefly cover a few topics that will be of increasing importance in the months to come and which will be covered in greater detail in future editions. I would also like to wish all recipients a healthy, happy and prosperous new year.
A SAD NOTE
Kenneth L. Chalker, Sr. the founding member of our firm passed away on September 10, 2009 following a courageous battle with cancer. For the obituary please see below. Dad started his law practice in 1966 and probably closed over 25,000 real estate transactions in his career. Our thoughts and prayers go out to all who have lost loved ones this year.
Kenneth Lamar Chalker, Sr. passed away on September 10, 2009 after a courageous battle with cancer. Mr. Chalker was a prominent attorney who practiced law for over 40 years in Smyrna and Marietta. His uncle was L.C. Chalker, the former mayor of Kennesaw, and the namesake of Chalker Elementary. He was born on May 30, 1936 in Atlanta. He was a graduate of Northside High School and he graduated from East Carolina University with a BA degree where he met his wife, Peggy, of 51 years. He graduated from John Marshall Law School and passed the bar exam in 1966. He served for a short period as the Recorders Court Judge in Smyrna in the early 70s. He was active as a coach and booster for the Smyrna Athletic Association, served as President of the Smyrna Lions Club, and was active in the Smyrna Jaycees. He began his legal career as an Associate with Cochran, Camp, and Snipes in Smyrna. He soon opened his own firm and established a general law practice with an emphasis on residential real estate closings. During his career he probably closed over 25,000 real estate transactions. Perhaps his most interesting case involved Osborne High School in the early 80s. Osborne lost a game that would have placed them in the playoffs if they had won. Late in the game the officials applied an erroneous interpretation of a rule that cost Osborne the game. Mr. Chalker filed for an injunction and a Cobb County Superior Court judge agreed with his argument and ordered that the game be replayed from the point where the error occurred. The GSHA appealed to the Supreme Court of Georgia and the court ruled that they were not going to involve the courts in a high school football game. The case received quite a bit of statewide press. Mr. Chalker was a member of Marietta Country Club for over 40 years and was a faithful member of the “1:00 group.” He was a man of the highest integrity whose word was his bond. He liked to say that, “there is no gray area – only right or wrong.” He was preceded in death by his beloved grandmother Lottie Pruitt and his parents Irene and Andrew Chalker. He is survived by his wife of 51 years Peggy Batchelor Chalker, his son and law partner Kenneth L. Chalker, Jr. and his son Charles William Chalker, his two daughter-in-laws Tammy Luther Chalker and Kimberly Morris Chalker, longtime legal assistants Cindy Middleton and Jennifer Edwards, and five grandchildren. Visitation will be Saturday afternoon 2-5 and the funeral will be 4:00 Sunday at Mayes, Ward-Dobbin funeral home. Pastor Robert Ledbetter officiating.
NEW GOOD FAITH ESTIMATE AND HUD-1 FORM
As most of you are aware, HUD has mandated that lenders and closing attorneys begin using new forms and disclosures for all loans closed after January
1, 2010. All our lender partners have been participating in training to be ready. Unfortunately, I am not sure that anyone is really prepared. It is my understanding that many of the software programs associated with the new forms contain bugs that are still being worked out. In addition, the proposed good faith form does not even disclose a bottom line amount to the borrower. It is my hope that implantation may be delayed to assist everyone in resolving the existing problems.
The main thing for realtors to be concerned with is the fact that certain fees must be accurately disclosed at the time of application by the loan officer. Any changes that negatively affect the borrower will result in the need for a new disclosure and a mandatory waiting period. The new HUD-1 only allows closing attorney’s two places to disclose their fees. This will probably be a positive change as it will make it easier for the borrower to compare fees among closing firms. Our fee will be $495.00 plus title insurance. These fees offer significant discounts over those charged by other firms. For a link to our complete fee sheet please visit our web site.
It will be extremely important for the lenders to present accurate fees at the time of application. To assist them in doing so we will be happy to provide a preliminary HUD-1 with all of our fees listed whenever requested. In most instances we will be able to provide this within a matter of moments. Just call or e-mail the request in. If needed after hours you can call Ken at 678-575-3806 and I can probably provide you a HUD-1 through my home computer. Feel free to call that number if any after hour’s issues arrive that you need assistance with.
OTHER CHANGES FOR 2010
Beginning in 2010 all lenders will be required to provide borrowers with a new “HUD Settlement Cost Booklet” which runs about 50 pages. This booklet presents borrowers with a good deal of information about the home buying and borrowing process. One point that the book emphasizes is the need to shop around for professional services associated with the loan. Of course, we fully support the borrower shopping around for settlement services since our fees are generally $200.00 - $500.00 lower than many of our competitors. If you would like a copy of this publication please click here for the link.
Interest rates have spiked in the last couple of weeks of this year. The yield on the 10 year Treasury bill hit 3.19 the Monday after Thanksgiving. On the Monday after Christmas it was 3.84. Higher yields on the 10 year treasury notes generally translate to higher interest rates. Rates which were running in the 4.625% to 4.75% range after Thanksgiving are now approaching 5.25%. Anyone associated with the real estate industry should log on to Bloomberg.com a couple of times a day and check the current yields on the 10 year treasuries and read some of the articles attached to this section. There is a treasure of trove of financial information disclosed on Bloomberg.com.
One of the greatest challenges facing our industry in 2010 is the fact that the Treasury Department is scheduled to cease purchasing mortgage backed securities at the end of March. The government purchasing of these securities has kept rates artificially low during the past year or so. Rates are almost certain to rise – the question is by how much. The days of 4.75%, or even 5.0% rates could be a thing of the past. For a rather technical article discussing this fact please click here. (link to brace for impact article)
Thanks,
Ken
NEWS AND NOTES FROM CHALKER & CHALKER, P.C.
PREMIER ISSUE
Welcome to the premier issue of “The Chalkboard.” The last few years have been challenging ones for those of us in the real estate business. 2010 should provide a new set of challenges and opportunities. The purpose of this newsletter is to provide useful information to real estate professionals as well as highlight the services our firm provides. The premier issue is being sent to approximately 250 real estate professionals. I would ask that you forward this issue to several of your colleagues so that they may benefit from the information that will regularly be appearing here.
This issue is meant to serve as an introduction to “The Chalkboard” and to briefly cover a few topics that will be of increasing importance in the months to come and which will be covered in greater detail in future editions. I would also like to wish all recipients a healthy, happy and prosperous new year.
A SAD NOTE
Kenneth L. Chalker, Sr. the founding member of our firm passed away on September 10, 2009 following a courageous battle with cancer. For the obituary please see below. Dad started his law practice in 1966 and probably closed over 25,000 real estate transactions in his career. Our thoughts and prayers go out to all who have lost loved ones this year.
Kenneth Lamar Chalker, Sr. passed away on September 10, 2009 after a courageous battle with cancer. Mr. Chalker was a prominent attorney who practiced law for over 40 years in Smyrna and Marietta. His uncle was L.C. Chalker, the former mayor of Kennesaw, and the namesake of Chalker Elementary. He was born on May 30, 1936 in Atlanta. He was a graduate of Northside High School and he graduated from East Carolina University with a BA degree where he met his wife, Peggy, of 51 years. He graduated from John Marshall Law School and passed the bar exam in 1966. He served for a short period as the Recorders Court Judge in Smyrna in the early 70s. He was active as a coach and booster for the Smyrna Athletic Association, served as President of the Smyrna Lions Club, and was active in the Smyrna Jaycees. He began his legal career as an Associate with Cochran, Camp, and Snipes in Smyrna. He soon opened his own firm and established a general law practice with an emphasis on residential real estate closings. During his career he probably closed over 25,000 real estate transactions. Perhaps his most interesting case involved Osborne High School in the early 80s. Osborne lost a game that would have placed them in the playoffs if they had won. Late in the game the officials applied an erroneous interpretation of a rule that cost Osborne the game. Mr. Chalker filed for an injunction and a Cobb County Superior Court judge agreed with his argument and ordered that the game be replayed from the point where the error occurred. The GSHA appealed to the Supreme Court of Georgia and the court ruled that they were not going to involve the courts in a high school football game. The case received quite a bit of statewide press. Mr. Chalker was a member of Marietta Country Club for over 40 years and was a faithful member of the “1:00 group.” He was a man of the highest integrity whose word was his bond. He liked to say that, “there is no gray area – only right or wrong.” He was preceded in death by his beloved grandmother Lottie Pruitt and his parents Irene and Andrew Chalker. He is survived by his wife of 51 years Peggy Batchelor Chalker, his son and law partner Kenneth L. Chalker, Jr. and his son Charles William Chalker, his two daughter-in-laws Tammy Luther Chalker and Kimberly Morris Chalker, longtime legal assistants Cindy Middleton and Jennifer Edwards, and five grandchildren. Visitation will be Saturday afternoon 2-5 and the funeral will be 4:00 Sunday at Mayes, Ward-Dobbin funeral home. Pastor Robert Ledbetter officiating.
NEW GOOD FAITH ESTIMATE AND HUD-1 FORM
As most of you are aware, HUD has mandated that lenders and closing attorneys begin using new forms and disclosures for all loans closed after January
1, 2010. All our lender partners have been participating in training to be ready. Unfortunately, I am not sure that anyone is really prepared. It is my understanding that many of the software programs associated with the new forms contain bugs that are still being worked out. In addition, the proposed good faith form does not even disclose a bottom line amount to the borrower. It is my hope that implantation may be delayed to assist everyone in resolving the existing problems.
The main thing for realtors to be concerned with is the fact that certain fees must be accurately disclosed at the time of application by the loan officer. Any changes that negatively affect the borrower will result in the need for a new disclosure and a mandatory waiting period. The new HUD-1 only allows closing attorney’s two places to disclose their fees. This will probably be a positive change as it will make it easier for the borrower to compare fees among closing firms. Our fee will be $495.00 plus title insurance. These fees offer significant discounts over those charged by other firms. For a link to our complete fee sheet please visit our web site.
It will be extremely important for the lenders to present accurate fees at the time of application. To assist them in doing so we will be happy to provide a preliminary HUD-1 with all of our fees listed whenever requested. In most instances we will be able to provide this within a matter of moments. Just call or e-mail the request in. If needed after hours you can call Ken at 678-575-3806 and I can probably provide you a HUD-1 through my home computer. Feel free to call that number if any after hour’s issues arrive that you need assistance with.
OTHER CHANGES FOR 2010
Beginning in 2010 all lenders will be required to provide borrowers with a new “HUD Settlement Cost Booklet” which runs about 50 pages. This booklet presents borrowers with a good deal of information about the home buying and borrowing process. One point that the book emphasizes is the need to shop around for professional services associated with the loan. Of course, we fully support the borrower shopping around for settlement services since our fees are generally $200.00 - $500.00 lower than many of our competitors. If you would like a copy of this publication please click here for the link.
Interest rates have spiked in the last couple of weeks of this year. The yield on the 10 year Treasury bill hit 3.19 the Monday after Thanksgiving. On the Monday after Christmas it was 3.84. Higher yields on the 10 year treasury notes generally translate to higher interest rates. Rates which were running in the 4.625% to 4.75% range after Thanksgiving are now approaching 5.25%. Anyone associated with the real estate industry should log on to Bloomberg.com a couple of times a day and check the current yields on the 10 year treasuries and read some of the articles attached to this section. There is a treasure of trove of financial information disclosed on Bloomberg.com.
One of the greatest challenges facing our industry in 2010 is the fact that the Treasury Department is scheduled to cease purchasing mortgage backed securities at the end of March. The government purchasing of these securities has kept rates artificially low during the past year or so. Rates are almost certain to rise – the question is by how much. The days of 4.75%, or even 5.0% rates could be a thing of the past. For a rather technical article discussing this fact please click here. (link to brace for impact article)
Thanks,
Ken
Saturday, November 14, 2009
Welcome to our blog!
View our webpage at http://chalkerclosing.com/
Welcome all. This is the first post to our all new blog. We're settling in here at our new offices at 3550 Busbee Parkway, Suite 100, Kennesaw, Ga, 30144. Our new offices are beautiful. Come by the Kennesaw location and take a look. Free cokes to the first 100 realtors, mortgage bankers, mortgage brokers, home buyers or home sellers. Mention that you heard Chalker & Chalker has the lowest closing fees in metro Atlanta real estate law. We still have a Woodstock/Towne Lake closing location offering the same great fees.
FIRM HISTORY:
Chalker & Chalker is comprised of the father and son closing attorney team of Ken Chalker, Sr. and Ken Chalker, Jr. Ken Chalker, Sr. was admitted to the practice of law in 1966. For over 42 years he has been practicing real estate law in the Cobb, Cherokee, Fulton, Bartow, Gwinnett and Dekalb County markets. He may very well be the most experienced real estate attorney practicing in Georgia today. He began as an associate with Cochran, Camp & Snipes in Smyrna, Georgia. He later moved his office to the square in Marietta, Georgia before moving to Roswell Road around 1985. He recently relocated to Busbee Parkway in Kennesaw, Georgia. As an interesting note his uncle, L.C. Chalker, was mayor of Kennesaw in the 40s. Shiloh Methodist Church at Wade Green Road was founded by the Chalker family. Chalker Elementary School off Bells Ferry Road is named after L.C. Chalker who was also an early educator in Kennesaw. His great grandfather was injured in the civil war at the battle of Kennesaw Mountain. Ken Chalker Sr's. roots run deep in the Cobb County and metro Atlanta region.
Ken Chalker, Jr, was born in Fulton County and his family moved to Smyrna when he was six months old. He was educated in the Cobb County public schools and played youth sports in Smyrna where he was a Smyrna Roadrunner. Ken Jr. attended the University of Georgia while Herschel Walker was a student and witnessed some great UGA football while he was there. He graduated from Mercer Law School, cum laude in 1988 and immediately began practing law with his dad in Marietta. In 1990 he relocated his practice to Woodstock where he eventually opened two offices on Highway 92 and Towne Lake Parkway. In 1999 he sold the firm to three other attorneys who renamed the company Kane, Thomas, and Brown.
Ken, Jr. briefly established a practice in Rome, Georgia in 1999 but quickly decided that Marietta and Woodstock were two dear to leave. He quickly reestablished a Towne Lake office which was recently closed to merge the Marietta and Woodstock offices into the Kennesaw office which is roughly located between the other two locations.
Together Ken Chalker, Sr. and Ken Chalker, Jr. offer over 60 years and thousands of real estate transactions of experience. We are one of the ten oldest real estate closing firms in metro Atlanta.
OUR BUSINESS PHILSOPHY- LOW FEES AND EXCEPTIONAL SERVICE
In December of last year, to deal with an overall business slowdown in the Atlanta market) we began offering lower priced closings than almost every closing attorney in metro Atlanta. (Please visit our fee schedule at kenlchalkersr.com). Many of the larger closing firms have dramatically increased fees to make up for the slowdown. In addition, most of these firms have fee sharing arrangements with major real estate companies, mortgage companies and/or builders so that they are paying referral fees in many cases to the real estate companies. In other cases they are paying very high rental rates to the realtors or mortgage companies to maintain offices in their buildings. Anytime a realtor asks you to sign a controlled business arrangement disclosure this should be a giant red flag that by using these services you are paying much more than you have to. As the consumer you have an absolute right to choose a closing agent who will provide great service and discount closing fees.
Welcome all. This is the first post to our all new blog. We're settling in here at our new offices at 3550 Busbee Parkway, Suite 100, Kennesaw, Ga, 30144. Our new offices are beautiful. Come by the Kennesaw location and take a look. Free cokes to the first 100 realtors, mortgage bankers, mortgage brokers, home buyers or home sellers. Mention that you heard Chalker & Chalker has the lowest closing fees in metro Atlanta real estate law. We still have a Woodstock/Towne Lake closing location offering the same great fees.
FIRM HISTORY:
Chalker & Chalker is comprised of the father and son closing attorney team of Ken Chalker, Sr. and Ken Chalker, Jr. Ken Chalker, Sr. was admitted to the practice of law in 1966. For over 42 years he has been practicing real estate law in the Cobb, Cherokee, Fulton, Bartow, Gwinnett and Dekalb County markets. He may very well be the most experienced real estate attorney practicing in Georgia today. He began as an associate with Cochran, Camp & Snipes in Smyrna, Georgia. He later moved his office to the square in Marietta, Georgia before moving to Roswell Road around 1985. He recently relocated to Busbee Parkway in Kennesaw, Georgia. As an interesting note his uncle, L.C. Chalker, was mayor of Kennesaw in the 40s. Shiloh Methodist Church at Wade Green Road was founded by the Chalker family. Chalker Elementary School off Bells Ferry Road is named after L.C. Chalker who was also an early educator in Kennesaw. His great grandfather was injured in the civil war at the battle of Kennesaw Mountain. Ken Chalker Sr's. roots run deep in the Cobb County and metro Atlanta region.
Ken Chalker, Jr, was born in Fulton County and his family moved to Smyrna when he was six months old. He was educated in the Cobb County public schools and played youth sports in Smyrna where he was a Smyrna Roadrunner. Ken Jr. attended the University of Georgia while Herschel Walker was a student and witnessed some great UGA football while he was there. He graduated from Mercer Law School, cum laude in 1988 and immediately began practing law with his dad in Marietta. In 1990 he relocated his practice to Woodstock where he eventually opened two offices on Highway 92 and Towne Lake Parkway. In 1999 he sold the firm to three other attorneys who renamed the company Kane, Thomas, and Brown.
Ken, Jr. briefly established a practice in Rome, Georgia in 1999 but quickly decided that Marietta and Woodstock were two dear to leave. He quickly reestablished a Towne Lake office which was recently closed to merge the Marietta and Woodstock offices into the Kennesaw office which is roughly located between the other two locations.
Together Ken Chalker, Sr. and Ken Chalker, Jr. offer over 60 years and thousands of real estate transactions of experience. We are one of the ten oldest real estate closing firms in metro Atlanta.
OUR BUSINESS PHILSOPHY- LOW FEES AND EXCEPTIONAL SERVICE
In December of last year, to deal with an overall business slowdown in the Atlanta market) we began offering lower priced closings than almost every closing attorney in metro Atlanta. (Please visit our fee schedule at kenlchalkersr.com). Many of the larger closing firms have dramatically increased fees to make up for the slowdown. In addition, most of these firms have fee sharing arrangements with major real estate companies, mortgage companies and/or builders so that they are paying referral fees in many cases to the real estate companies. In other cases they are paying very high rental rates to the realtors or mortgage companies to maintain offices in their buildings. Anytime a realtor asks you to sign a controlled business arrangement disclosure this should be a giant red flag that by using these services you are paying much more than you have to. As the consumer you have an absolute right to choose a closing agent who will provide great service and discount closing fees.
While our fees are lower than most firms, our customer service is far superior to most. With many of the larger firms you encounter an attitude that they are doing you a favor by closing your transaction. If you want to speak to an attorney, forget it. At our firm my cell phone is printed on my business card. You can speak to me at almost any time. We strive to turn around title orders within 48 hours of receipt. Our paralegals are knowledgeable and friendly. We never forget that you are the reason we are here, not an interruption to our busy schedule.
This is the first post on the blog and I will strive to update and expand it with useful and important information.
Check back here for news and updates about our firm!
Ken Chalker, Jr. - Attorney
Chalker & Chalker Real Estate Attorneys
Communities Served.
- Cobb County
- Cherokee County
- Bartow County
- Gordon County
- Gilmer County
- Fulton County
- Dekalb County
- Paulding County
- Gwinnett County
- Atlanta
- Marietta
- Smyrna
- Kennesaw
- Canton
- Woodstock
- Holly Springs
- Ball ground
- Dallas
- Hiram
- Decatur
- Roswell
- Alpharetta
- Cartersville
- Emerson
- Acworth
- Jasper
- Ellijay
- Adairsville
- Lawrenceville
Our main focus is on the Cherokee County and Cobb County, Georgia real estate closing markets.
MANY OTHER AREAS SERVED CALL FOR MORE INFORMATIONS
Below is a shameless attempt to appear on more search engines.
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Friday, August 22, 2008
CURRENT MARKET CONDITIONS
I read in this week's AJC that mortgage orders were down 61% from February. I can believe it. This is the worst market I have seen in over 20 years of doing this. We will survive as a firm due to our low fees, I can not imagine how the big dollar firms are staying around. For the indefinite future I will taking on a limited number of litigation matters. My prediction is that the real estate market is at least one year away from turning around.
Wednesday, November 28, 2007
Answers to Frequently asked Questions
(Q) I closed in June and it is now October. I just received a tax bill from the Cherokee County Tax Commissioner. Do I owe this bill?
(A) Yes you do. Near the end of every year we receive many calls asking why do I owe the county taxes for the entire year? At closing we pro-rate taxes based usually on the prior year's tax amount. The seller gives the buyer a credit for their pro-rated share of taxes through that date. For example if the prior years tax bill was $2000.00 and the loan closed on June 1 (exactly 1/2 year), the buyer would receive a credit on the front of the settlement statement for $1000.00. In essence the seller has paid the buyer $1000.00 up-front and then the buyer becomes responsible for the taxes.
If the taxes were to increase from the prior year there is a statement on the third page of the settlement statement that allows the buyer to request more money from the seller for their share of the taxes. For instance, taking the example above, if the actual taxes for the year in which the closing took place turned out to be $3000.00 then the seller should have paid the buyer $1,500.00 instead of $1000.00. The buyer would have the right to seek an additional $500.00 from the seller. Fortunately, taxes seldom make a drstic jump from year to year and most people ignore small increases.
If the closing occurred later in the year and the taxes had already been paid then the buyer would owe the seller the pro-rated share of taxes which they paid. Most metro Atlanta taxes are due around October 15, Cherokee County is December 15 and Fulton County is frequently due prior to October 15. Gwinnett County taxes are normally due in 2 installments of September 15 and November 15.
There are instances where it is difficult to estimate taxes for a current year. This is usually due to new construction where the taxes for the prior year were based on a lot only with no house built. In this instance we usually estimate annual taxes at 1% of the sales price or appraised value.
There, a lengthy answer to a meaty issue.
(Q) Who pays the closing costs in a real estate sale sale?
In Georgia real estate transactions the payment of closing costs are negotiable. If the contract is silent as the payment of closing costs the purchaser will be responsible for the costs. Almost all standard contracts state that the seller will pay the state of Georgia transfer tax which is a $1.00 per thousand based on the sales price. The seller who agrees to pay closing costs should always place a limit on the amount they agree to pay. Normal closing costs for an average size loan run about 3% of the loan amount.
(Q) Why should I use an attorney to close my Georgia Real Estate transaction?
The Supreme Court of Georgia has issued an opinion stating that it is unethical for a non-attorney to close a loan in the state of Georgia. This opinion covers re-finances as well as purchase deals. Now, if you are not an attorney this may not mean very much being that the State Bar of Georgia only has jurisdiction over attorneys. Many lenders have adopted the view that it is illegal for a non-attorney to close loans in Georgia. Others feel that it is OK for a Notary, who is not an attorney, to close loans. While I don't necessarily think that it is illegal for a non-attorney to close loans I believe that the consumer is much better served by having an attorney close thier loans.
The biggest reason is the ethical obligations imposed upon an attorney by the State Bar of Georgia and state law. When a borrower closes with a Notary it typically goes something like this. The buyer calls an 800 number of applies on line with any of a number of national lenders that we see on TV, read in the newspaper, and hear on the radio every day. The borrower applies for the loan with someone they never see and sometimes never talk to. Assuming that the lender is legitimate, and the loan is actually approved, the lender sends a Notary to your home or office.
In Georgia the requirement to become a Notary is to have two persons who live in the county sign a statement that the Notary is of good character. The Notary then pays a small fee and becomes a Notary. An attorney must attend 3 years of law school, pass a rigorous background check, and pass an extensive exam. I would estimate that at least half the persons who begin law school never become lawyers.
In pointing this out, I am not suggesting that these TV lenders and their bands of Notary Publics are out to scam anyone. I am sure that most have the best of intentions. My point is that if you have a problem with the transaction, that there is very little recourse against a voice on the telephone or the notary who showed up at your house one night. The lenders will discount this fact and claim that you are saving money by using the notary. As I will point out in further entries this is simply not the case. In fact, our discount closing fees, will usually be less expensive than a Notary closing and you receive a lot more for your money.
Many people state that real estate attorneys are not real lawyers and that what we do is easy. There is certainly some truth to the fact that we do not function like traditional lawyers with court appearances, etc. What we do however, is deal with MONEY, a lot of MONEY, your MONEY. Even in a routine refinance transaction you want to be assured that your loans are paid off and properly satisfied at the county courthouse. If you close with digimagicinternetlender.com and the local Notary you basically have no recourse if things go wrong. Many small and large items can go awry in a real estate transaction.
You should never close with anyone except an attorney who has been a full time real estate lawyer for at least five years. Like anything else, the real estate closing process takes time to learn. You don't need any rookies. Ultimately if you have a problem involving the unethical conduct of an attorney you can complain to the state bar and they will get the attorney's attention. Chances are the mega lender and Notary are long gone with no incentive whatsoever to straighten out the problem.
Georgia is an attorney closing state. Florida and Texas for example close with title companies and the fees they charge are regulated by the state. Even before our firm introduced the discount fee concept to Georgia and metro Atlanta real estate closings the average Georgia closing was less than half the cost of a Florida closing. In New York every closing has 3 or 4 attorneys present. I can only imagine what it costs there to close a loan. I have seen closing statements from all over the country and our fees in Georgia either match or beat the fees in other states.
(A) Yes you do. Near the end of every year we receive many calls asking why do I owe the county taxes for the entire year? At closing we pro-rate taxes based usually on the prior year's tax amount. The seller gives the buyer a credit for their pro-rated share of taxes through that date. For example if the prior years tax bill was $2000.00 and the loan closed on June 1 (exactly 1/2 year), the buyer would receive a credit on the front of the settlement statement for $1000.00. In essence the seller has paid the buyer $1000.00 up-front and then the buyer becomes responsible for the taxes.
If the taxes were to increase from the prior year there is a statement on the third page of the settlement statement that allows the buyer to request more money from the seller for their share of the taxes. For instance, taking the example above, if the actual taxes for the year in which the closing took place turned out to be $3000.00 then the seller should have paid the buyer $1,500.00 instead of $1000.00. The buyer would have the right to seek an additional $500.00 from the seller. Fortunately, taxes seldom make a drstic jump from year to year and most people ignore small increases.
If the closing occurred later in the year and the taxes had already been paid then the buyer would owe the seller the pro-rated share of taxes which they paid. Most metro Atlanta taxes are due around October 15, Cherokee County is December 15 and Fulton County is frequently due prior to October 15. Gwinnett County taxes are normally due in 2 installments of September 15 and November 15.
There are instances where it is difficult to estimate taxes for a current year. This is usually due to new construction where the taxes for the prior year were based on a lot only with no house built. In this instance we usually estimate annual taxes at 1% of the sales price or appraised value.
There, a lengthy answer to a meaty issue.
(Q) Who pays the closing costs in a real estate sale sale?
In Georgia real estate transactions the payment of closing costs are negotiable. If the contract is silent as the payment of closing costs the purchaser will be responsible for the costs. Almost all standard contracts state that the seller will pay the state of Georgia transfer tax which is a $1.00 per thousand based on the sales price. The seller who agrees to pay closing costs should always place a limit on the amount they agree to pay. Normal closing costs for an average size loan run about 3% of the loan amount.
(Q) Why should I use an attorney to close my Georgia Real Estate transaction?
The Supreme Court of Georgia has issued an opinion stating that it is unethical for a non-attorney to close a loan in the state of Georgia. This opinion covers re-finances as well as purchase deals. Now, if you are not an attorney this may not mean very much being that the State Bar of Georgia only has jurisdiction over attorneys. Many lenders have adopted the view that it is illegal for a non-attorney to close loans in Georgia. Others feel that it is OK for a Notary, who is not an attorney, to close loans. While I don't necessarily think that it is illegal for a non-attorney to close loans I believe that the consumer is much better served by having an attorney close thier loans.
The biggest reason is the ethical obligations imposed upon an attorney by the State Bar of Georgia and state law. When a borrower closes with a Notary it typically goes something like this. The buyer calls an 800 number of applies on line with any of a number of national lenders that we see on TV, read in the newspaper, and hear on the radio every day. The borrower applies for the loan with someone they never see and sometimes never talk to. Assuming that the lender is legitimate, and the loan is actually approved, the lender sends a Notary to your home or office.
In Georgia the requirement to become a Notary is to have two persons who live in the county sign a statement that the Notary is of good character. The Notary then pays a small fee and becomes a Notary. An attorney must attend 3 years of law school, pass a rigorous background check, and pass an extensive exam. I would estimate that at least half the persons who begin law school never become lawyers.
In pointing this out, I am not suggesting that these TV lenders and their bands of Notary Publics are out to scam anyone. I am sure that most have the best of intentions. My point is that if you have a problem with the transaction, that there is very little recourse against a voice on the telephone or the notary who showed up at your house one night. The lenders will discount this fact and claim that you are saving money by using the notary. As I will point out in further entries this is simply not the case. In fact, our discount closing fees, will usually be less expensive than a Notary closing and you receive a lot more for your money.
Many people state that real estate attorneys are not real lawyers and that what we do is easy. There is certainly some truth to the fact that we do not function like traditional lawyers with court appearances, etc. What we do however, is deal with MONEY, a lot of MONEY, your MONEY. Even in a routine refinance transaction you want to be assured that your loans are paid off and properly satisfied at the county courthouse. If you close with digimagicinternetlender.com and the local Notary you basically have no recourse if things go wrong. Many small and large items can go awry in a real estate transaction.
You should never close with anyone except an attorney who has been a full time real estate lawyer for at least five years. Like anything else, the real estate closing process takes time to learn. You don't need any rookies. Ultimately if you have a problem involving the unethical conduct of an attorney you can complain to the state bar and they will get the attorney's attention. Chances are the mega lender and Notary are long gone with no incentive whatsoever to straighten out the problem.
Georgia is an attorney closing state. Florida and Texas for example close with title companies and the fees they charge are regulated by the state. Even before our firm introduced the discount fee concept to Georgia and metro Atlanta real estate closings the average Georgia closing was less than half the cost of a Florida closing. In New York every closing has 3 or 4 attorneys present. I can only imagine what it costs there to close a loan. I have seen closing statements from all over the country and our fees in Georgia either match or beat the fees in other states.
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