 Sam
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Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
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 Posted: Mon Jul 12, 2004 5:07 pm Post subject: Need of Closing Adjustments |
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Closing adjustment are a usual adjustments, which are designed to settle any expenses prepaid by the seller. On the closing date seller's lawyer will make adjustments for costs associated with occupancy of house. These require a borrower to settle all the seller prepaids, at the mortgage closing date.
Closing Adjustments may include:
- Prepaid Services Adjustments - Where the sellers have prepaid property taxes or certain utilities, the buyers can be charged for the prepayment amount on a proportional basis, depending on the date of occupancy.
- Interest Adjustments - This is the amount of interest required to be prepaid up to the interest adjustment date. Interest adjustment date is the point at which the mortgage interest starts accumulating in arrears.
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