who negotiates the second mortgage the real estate agent or attorney

For a buyer, a real estate attorney will ensure that the offer made is valid, whereas a real estate attorney for a seller will help negotiate the terms of the sale. They protect the rights of the buyer or the seller by examining and evaluating the documents, explaining the terms of the mortgage and providing legal advice if necessary.

Full Answer

What is the difference between a real estate agent and broker?

Real estate agents put buyers and sellers together; mortgage brokers put buyers and lenders together. Depending on whom they represent, real estate agents help their clients purchase a property or sell a property, and mortgage brokers help their clients find financing for the property.

What does a mortgage broker do?

What Mortgage Brokers Do. Mortgage brokers act on behalf of clients to find them the best interest rate and terms for a mortgage, either on a private residence or a commercial property. Researching the latest interest rates and loan terms is an essential and ongoing part of a mortgage broker's job of securing the best rates for a client.

What does a buyer's agent do?

A buyer's agent a. negotiate a price lower than the quoted price on the property. b. correct any problems on his credit report. c. get a comprehensive list of all the suitable properties in a locality.

How do I become a mortgage broker?

The qualifications for becoming a mortgage broker may include: A sales or marketing background; a banking background is also helpful. A knowledge of lending institutions, their lending rates and terms. Familiarity with credit reporting and credit-worthiness criteria. A proficiency in mathematics.

Is a real estate attorney required in NY?

Although attorneys aren't a required part of real estate transactions in many states, the local custom in New York is for both buyers and sellers to be represented by their own counsel. You might also want to hire a buyer's agent to help you find a home to purchase and advise you when making an offer.

Do you need a real estate attorney in Massachusetts?

In Massachusetts, the practice of closing transactions for buyers and sellers when there is a home loan is considered the practice of law; therefore, the settlement agent for any real estate closing involving a lender must be conducted by a licensed attorney.

Do you need a real estate attorney in Illinois?

Some states mandate that home buyers hire an attorney for the real estate closing while others stay silent on the matter. Illinois is one of the states that does require you to have a lawyer review your purchase agreement before finalizing your home purchase.

What does a real estate attorney do in Massachusetts?

The responsibilities of a Massachusetts real estate lawyer include reviewing the contract, negotiating repairs, and making other changes to the terms of the deal. A lawyer will also attend a closing, which is the final step in executing a real estate transaction to ensure that everything goes fairly and smoothly.

Who prepares the purchase and sale agreement in Massachusetts?

The seller's agent or attorney will draft the Purchase and Sale Agreement (P&S). This is the more binding legal document that is the official contract to purchase the home. It is a “cookie cutter” type standard document. 2.

What are attorney fees for closing a house in Illinois?

Attorney's Fees In Illinois, attorneys are an absolutely indispensable part of the closing process, taking care of lots of essential paperwork and contract negotiations. Be ready to pay between $400 and $850 in attorney's fees, depending on the type of home being sold.

What does a real estate attorney do for a seller Illinois?

They work with the title company to ensure that the seller actually has the right to pass full title to the property to the buyer. If there are any impediments to this right, the attorney will identify them and work with the parties and the title company to resolve any issues.

Can an attorney represent both buyer and seller in Illinois?

As long as the agent fully discloses the relationship to both buyer and seller and receives their written consent, there is no restriction in representing both.

Is Massachusetts an attorney closing state?

Several states have laws on the books mandating the physical presence of an attorney or other types of involvement at real estate closings, including: Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New ...

Do you need a real estate agent to buy a house in MA?

The simple answer is no, it is not required you are represented by a buyer's agent when purchasing a home. But there is much to consider when you decide to buy a home and choosing what role you want your real estate agent to play in your home purchase is one of them.

Do you need a buyers agent in Massachusetts?

You'll need to line up your buyer's agent before you start house-hunting, rather than looking at a house, meeting the agent who represents the seller, and authorizing that person (the "listing agent") to represent you in the same transaction.

What do real estate lawyers do?

Commercial property (or real estate) lawyers act for a variety of domestic and international clients – including investors and developers, governments, landowners and public sector bodies – on a wide range of transactions, involving everything from offices to greenfield and retail developments, infrastructure projects ...

Why Do People Take Out Second Mortgages?

In some cases, people use the funds from the second mortgage to pay off credit card debt or other types of debts. This allows them to save money, as the second mortgage may often have a lower interest rate than credit card rates.

What About HELOCs?

Home Equity Lines of Credit (also called HELOCs) are sometimes referred to as second mortgages, although they are slightly different. Both types of loans use your home’s equity as collateral, and both will show up on your credit report and in a title search performed by a real estate attorney. However, a HELOC works as a revolving line of credit instead of a one-time static withdrawal.

What Kind of Credit Do I Need For a Second Mortgage?

Just like with first mortgages, there are many loan programs out there to fit your needs. Depending on your credit history and the amount of equity you have in your home, you may be able to borrow more against the equity in your home. The more equity you have and the better your credit score, the better your chances of finding a loan program that is right for you.

Should I Talk to a Real Estate Lawyer?

If you are considering a second mortgage on your home , it is a good idea to speak with a qualified real estate attorney. The right attorney can help you by explaining different financing options depending on what your needs are, and what you can expect out of the process of taking out a second mortgage.

What is equity in a second mortgage?

Where first mortgages use the property as collateral for the loan, second mortgages often involve borrowing against the equity in your home. Equity is calculated by your loan to value ratio — the difference between the market value of your home and what is currently owed on the home.

How does a HELOC work?

However, a HELOC works as a revolving line of credit instead of a one-time static withdrawal. While a second mortgage has a fixed loan amount with a fixed repayment term over the course of the life of the loan, a HELOC works a little bit differently. A HELOC allows you to draw out money up to a maximum amount.

Why is a second mortgage called a second mortgage?

It is called a “second” mortgage because of where it is in line to be paid in case of foreclosure. In foreclosure proceedings, liens on the property (like mortgages) are paid off in order of seniority. The first mortgage on the property will be paid first, and the second mortgage will be paid after the first mortgage is paid.

Find a legal form in minutes

Browse US Legal Forms’ largest database of 85k state and industry-specific legal forms.

Second Mortgage

A second mortgage provides a fixed amount of money repayable over a fixed period. In most cases the payment schedule calls for equal payments that will pay off the entire loan within the loan period. A second mortgage differs from a home equity loan in that it is not a line of credit, but rather a more traditional type of loan.

Why Do Lenders Settle Second Mortgages?

For most homeowners, their second mortgage is not attached to any real equity. This common situation results when the value of the property has declined in value. The common scenario is that the home value is equal to or less than the amount of the first mortgage. This leaves the second just “swinging in the wind” with no equity (or actual value) to hold on to. From the lender’s perspective, this second mortgage has very little value. It would make no sense for the second mortgage to foreclose because they’d have to pay off the first….which would result in a loss, not a benefit to them. Under these circumstances, most second mortgages can be settled for pennies on the dollar!

How to settle a second mortgage?

Typically the loan needs to be a “non-performing” loan for an extended period of time before the lender will consider a favorable settlement. The longer the loan has not been paid, the better the settlement offer often gets. Often times the lender will send the homeowner an unsolicited offer letter to settle. Keep in mind, this is their opening offer, and the initial number can often be negotiated down substantially. Alternatively, the homeowner can type up an offer letter and send it off to the lender to begin the negotiation process. Once the lines of communication is open, and all parties agree they want to settle the second mortgage, it’s just a matter of coming to a number.

Who is McFarlin LLP?

If you are considering a settlement on your second mortgage call our office anytime to discuss your options. Qualified real estate lawyer Jarrod Nakano is available to offer you a free consultation at our Irvine office and explain the process at (888) 728-0044. If you have any more questions

What to do if you have a second mortgage?

Attorney Search Network can help you find a real estate lawyer in your area that can help you take steps towards solving your second mortgage issues.

What happens if a second mortgage company collects on a home?

When a second mortgage company decides it can collect on the homeowner, it can begin a lawsuit and sue the homeowner for what is owed to them. If the mortgage company wins the lawsuit, it will get a money judgment against the homeowner, meaning that it can take various routes to recover their owed funds from the homeowner. For example, the lender may get a judgment lien against other property or real estate that the homeowner owns. This means they can foreclose the homeowner's other real estate and/or repossess anything of value they may own (car, jewelry, art, equipment, etc.). The second lender can also garnish the homeowner's wages (take a percentage of every income payment for a certain amount of time). In addition, they can levy the homeowner's bank account (s) and remove the funds to pay back the loan. Any of these second mortgage issues can wipe out a homeowner, putting them in severe financial danger.

What happens if you default on a second mortgage?

There are a few scenarios that may occur if this happens that would lead to second mortgage issues. If the home still has equity, and the amount that it is worth is greater than what is owed on the first mortgage, then it may be likely that the second mortgage company will initiate a foreclosure on the home. This is because if the home is sold on foreclosure, the second mortgage company will be able to get at least part of its money back. If, however, the home is worth less than the amount owed on the first mortgage, the second mortgage company may not issue a foreclosure because all of the money from the sale would go to the first lender and not the second.

What is the difference between a real estate agent and a mortgage broker?

A real estate agent helps buyers and sellers find or sell a physical property, and a mortgage broker helps buyers find the financing to purchase a property.

What is mortgage broker?

Mortgage brokers act on behalf of clients to find them the best interest rate and terms for a mortgage, either on a private residence or a commercial property. Researching the latest interest rates and loan terms is an essential and ongoing part of a mortgage broker's job of securing the best rates for a client.

What does a good broker do?

Some brokers may develop relationships with favored lending institutions, but a good broker will look out for his or her clients' best interests. Given the job's key component of finding the best loan options for their clients, a heavy knowledge of lending institutions, lending rates, and terms is a must.

What does a real estate agent do?

Depending on whom they represent, real estate agents help their clients purchase a property or sell a property, and mortgage brokers help their clients find financing for the property. Mortgage brokers must study credit reports and lending contracts; real estate agents are less concerned with financial details (other than purchase prices).

What are the qualities of a good real estate agent?

Because the real estate industry can be extremely competitive, if you want to become a real estate agent, an outgoing personality, a desire to be helpful, maturity, and trustworthiness are essential qualities. A residential real estate agent should also be able to present a house and sell the features it provides in ...

Who is Ebony Howard?

Ebony Howard is a certified public accountant and a QuickBooks ProAdvisor tax expert. She has been in the accounting, audit, and tax profession for more than 13 years, working with individuals and a variety of companies in the health care, banking, and accounting industries.

Do real estate agents have to be available on short notice?

As a result, real estate agents must be willing to make themselves available on short notice whenever their clients need them. Real Estate Agent Compensation. Item. Range Of Compensation.

What is lowballing in sales?

Lowballing is a sales technique where the salesperson quotes a low price for a car to get you to make an offer, and negotiates the price upward prior to signing the sales agreement.

What is the job of a mortgage banker?

The job of a mortgage banker is to locate conventional loans for clients.

What is a seller's financial institution?

a. A type of financing made available by a builder or seller to a potential new-home buyer at interest rates well below market interest rates , often only for a short period, is termed a: a. conventional mortgage.

What is it called when an individual tends to allow an initial estimate to dominate the subsequent assessment?

a. A behavioral bias in which an individual tends to allow an initial estimate (of value or price) to dominate the subsequent assessment (of value or price) regardless of new information to the contrary is called: a. foreclosing.

What is a co-op title?

In a co-op, the buyer receives title to a unit and joint ownership of the common areas.

Can all buyers and sellers access MLS listings?

The property listing in a local Multiple Listing Service (MLS) cannot be accessed by all buyers and sellers.