I’m going on the record with a strong second to my friend, Gary Pickren’s blog!
Gary Pickren, an excellent residential real estate attorney with an outstanding law firm, Blair|Cato|Pickren|Casterline, here in Columbia posted a blog on May 12 entitled “Save Yourself a Huge Headache!!!!” You can read Gary’s blog in its entirety here.
Gary was apparently reacting to a crazy month-end for his office in April. He reported 25 closings on Tuesday, April 30 as opposed to 3 or 4 on Wednesday, May 1. And the closings that occurred on May 1 were a result of late loan packages from lenders. He was asking his real estate agents to save themselves headaches by scheduling closings throughout the month.
Closings at the end of the month are not a new phenomenon. As far back as I can remember (and that’s a long way back), real estate agents have scheduled closings at the end of the month. Why? Because interim interest has to be paid for only one day, reducing the funds the buyer has to bring to the closing.
Does closing at the end of the month save the buyer money? No! Interest will be paid from the date of the closing regardless. The only difference is the amount of the interim interest, the funds brought to the closing table. If interest is not brought to the closing, it is paid with the first payment.
I sent Gary’s blog around to my office members and got some unexpected strong reactions!
Troyce Anderson, who was formerly a closing paralegal in Greenville, said scheduling closings throughout the month would probably reduce claims because law firms would be able to close with less stress and avoid common mistakes.
Melissa Christensen, who was formerly a closing paralegal in the Myrtle Beach area, said her daughter, Savannah, was born on May 30, and the family always has to schedule birthday parties in early June.
Speaking of birth issues, Sara Sigwart, who was formerly a closing paralegal in Hilton Head and Charleston, said that one of her fellow closing paralegals successfully searched for a doctor who would schedule a delivery of her child on the 20th of the month so she could celebrate birthdays with her child on the actual birth date. Sara’s other reply to Gary’s blog was “PREACH!”
Denise Seay, who was formerly a real estate paralegal in Hilton Head said, “Oh good grief-we used to say Realtors only knew one day in the month!”
If our office staff reacted this strongly, imagine how strongly your paralegals, who are currently in the closing trenches, would react. Think about how much easier it would be to manage your office and everyone’s schedules! Your holidays and vacations would even be more manageable.
Gary’s blog calls the end of the month in a residential closing office “organized chaos”. It might also be termed a huge “traffic jam” for lenders, real estate agents, closing attorneys, paralegals, abstractors, and even buyers and sellers. Let’s follow Gary’s advice and spread closings throughout the month!
You don’t have to be the “bad guy” by using your own words to pass this thought on to real estate agents. Send them this blog!