why should i be represented by an attorney on my mortgage

Refinancing your mortgage involves many different parts and it can be a complicated legal transaction. An attorney can help you simplify the process and ensure it runs smoothly. In addition, they can provide peace of mind by reviewing your documents and guiding you on what steps to take next.

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What does a mortgage attorney do?

The attorney will also attend the mortgage closing, reviewing the loan documents you sign to take ownership of your home. Closing your mortgage loan is far from a cheap process.

Can a real estate attorney represent the lender at a closing?

Or, in the case where an attorney is overseeing a closing where the home is being purchased with a mortgage loan, the attorney may actually represent the mortgage lender. Find out what you can afford. Use Rocket Mortgage ® to see your maximum home price and get an online approval decision. When Do I Need A Real Estate Attorney?

What does a real estate attorney do when buying a house?

After the buyers and sellers agree upon a price, working with their real estate agents to do so, it's the job of the attorneys to work out the final details, he said. "Basically, the agents determine the price and major terms of the deal," he said. "Then the attorneys hammer out all the nuances of the contracts." No spam.

Should I hire a lender's attorney or a buyer's attorney?

It should be noted that despite the potential disadvantages, the vast majority of homebuyers in Massachusetts choose the lender's attorney to also provide buyer representation.

Why is my refinance closing delayed?

Many closings are delayed because a prior mortgage of record cannot be discharged in a timely manner, and often it is a result of an improperly handled refinance transaction.

Do brokers represent you?

Although they may be handling the entire transaction, they do not represent you or your interests. When that is the case, they are not protecting your interests when they review terms with you that may be unfavorable to you, or not in your best interests. Your clear understanding is certainly not a priority.

Can a refinance match your application?

Firstly, the commitment for the refinance transaction might not match your application, or the loan documents do not match the terms of your commitment. Of course, the bank, the mortgage company and/or its representatives will not assist you in this regard. Although they may be handling the entire transaction, they do not represent you or your interests. When that is the case, they are not protecting your interests when they review terms with you that may be unfavorable to you, or not in your best interests. Your clear understanding is certainly not a priority.

Is it legal to refinance a mortgage without an attorney?

While it is entirely legal to proceed without an attorney, you should be aware of at least two potential pit falls in proceeding with a refinance transaction without hiring your own attorney.

Why do you need an attorney for a mortgage refinance?

Homeowners may consider refinancing a mortgage loan for a variety of reasons – from obtaining lower interest rates to adjusting the duration of the loan. As with many legal and financial transactions, refinancing a mortgage can be a daunting task. While not required, it’s important ...

What can an attorney do for a refinance?

An attorney can help you examine lender offers to determine whether or not the costs, fees, and terms are legitimate. 2. Protect Your Interests. When refinancing your mortgage, it’s imperative to have someone looking out for you and your best interests.

What is predatory lending?

Predatory lending refers to lenders who target people with dishonest tactics like charging hidden fees and providing misleading information about loan terms. These schemes may appear to be favorable and affordable, but they are deceptive and can trap the borrower in a cycle of debt.

Is refinancing a mortgage a legal process?

Refinancing your mortgage involves many different parts and it can be a complicated legal transaction . An attorney can help you simplify the process and ensure it runs smoothly. In addition, they can provide peace of mind by reviewing your documents and guiding you on what steps to take next.

Why are attorneys helpful?

Attorneys are especially helpful if there is something unusual about the real estate transaction , Davis said. Maybe there are existing tenants on the property that buyers are purchasing. Maybe the sale involves a complicated financing structure. Maybe there's even a pending lawsuit involving the property.

How much does a real estate attorney charge to attend closing?

Usually, buyers pay the fee charged by attorneys. That fee varies, but sources quoted for this story said that real estate attorneys will charge $500 to $1,800 to attend closings, depending on how complicated a real estate transaction is.

Why are title representatives at closing table?

They're not. Title representatives are at the closing table to protect the interests of the bank or lender providing the mortgage.

What is the job of a home buyer?

When hired by a buyer, their job is to study the paperwork that the buyers are signing to make sure that these documents are correct. "Most home buyers do not deal with contracts on a regular basis, and a home sale often involves a significant amount of money," Davis said.

Do you need a real estate attorney at closing?

Not all real estate professionals, though, agree that buyers always need a real estate attorney at the closing table. In some cases, they say, hiring one is a waste of money.

Do you need an attorney for a closing?

And most real estate agents we spoke to for this story agreed. But not all of them. Some said that an attorney was only needed for unusual closings, such as when buyers are purchasing a property that is involved in a lawsuit .

Is it time to close a mortgage?

It's time to close your mortgage loan. Expect a crowded room at closing day. You'll be there, of course, and most likely so will your home's seller. Your real estate agent, the seller's agent, the representative from the title company and a loan officer from your mortgage lender should all be there. But should there be at least one other person ...

Why do you need an attorney for a home purchase?

Here are a few reasons you might need or want an attorney to be part of your home buying team: State or lender requirement: Every state has slightly different laws regarding real estate transactions, and some states consider certain actions that are part of the process to be “practicing law.”. These regulations are often meant to prevent real ...

What is a real estate attorney?

A real estate attorney is someone who is licensed to practice real estate law, meaning they have the knowledge and experience to advise parties involved in a real estate transaction, such as a home sale.

How much does a real estate attorney charge per hour?

Fixed hourly rate: A real estate attorney who charges an hourly rate may charge $150 – $350 per hour, but this can vary a lot depending on how experienced the attorney is and what area you’re in.

How to find out about an attorney?

Use an online legal review site: There are many online review websites that will give you information on attorneys in your area, including their specialties, fee structures and any reviews left by former clients.

How to find a real estate lawyer?

Utilize your state’s Bar association directory: Your state Bar association’s website can help you locate lawyers in your area who practice real estate law. Use the American Bar Association’s directory to help you find your state’s website.

Do you have to have an attorney at closing?

If your mortgage lender requires an attorney to be present at closing, whether the buyer or seller covers the cost of the closing attorney will depend on how your contract was negotiated. If you want your own attorney in addition to the one required by your lender, you’ll also pay for any services they provide you.

What to ask if someone recently purchased a home?

Ask for recommendations from friends and family: If someone in your social circle recently purchased or sold a home and had an attorney, you might consider asking them who they used and what their experience was like.

What are the disadvantages of having a lender's attorney?

Disadvantages of having your lender’s attorney provide dual representation: 1. Different services. Closing attorneys provide a myriad of services before, during and after a closing. Among other duties, they review and certify title, review/prepare/record the deed, obtain and payoff existing mortgages, order and payoff municipal bills ...

What is the service of a buyer's attorney?

In addition to reviewing/negotiating the P&S, another important service a buyer’s attorney performs is to review the closing documents prepared by the closing attorney. Naturally, neither the lender nor the closing attorney’s office would purposefully prepare closing documents that are not accurate, but there is human error, and one can make an argument that a third party trained to represent the buyer’s interest is going to be more likely to catch an error in the closing documents when they are not the person who prepared those documents.

How much does a closing attorney save?

If the closing attorney agrees to represent the homebuyer free of charge for reviewing the purchase and sale agreement and other items associated with buyer representation, the buyer can potentially save between $400 and $800.

What is a settlement agent in Massachusetts?

Most homebuyers that purchase a home in Massachusetts obtain a mortgage loan from a lender. The person/company that handles the closing (transfer of title) for the lender is known as the settlement agent. 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. That settlement agent is often called the “closing attorney.” If you're moving to Massachusetts, this part of the closing process may be different than the state you're moving from.

What is a closing attorney in Massachusetts?

That settlement agent is often called the “closing attorney.”. If you're moving to Massachusetts, this part of the closing process may be different than the state you're moving from. The legal fees for the closing attorney is one of several closing costs a homebuyer is responsible for paying at closing. That closing attorney represents the lender, ...

What is a note in a mortgage?

The note is a contract for the homebuyer/borrower to repay the loan based on the legal terms of the note. And the mortgage is a security instrument that a borrower gives to the lender allowing it to foreclose on the property, if the covenants and agreements in the note and mortgage are not met. The reason why a buyer has to pay for ...

Do closing attorneys discount buyer representation?

Because there are already several items for which the homebuyer is paying the closing attorney, some closing attorneys will discount (or even eliminate) the costs of the buyer representation part of their services if/when the homebuyer chooses the dual representation.

What does a closing attorney do?

At closing, this professional's job is to make sure that the loan documents you sign are prepared accurately and properly reflect the fees that you and the seller agreed to pay. Your attorney will also answer any questions you have during the closing and will negotiate on your behalf if last-minute financing problems pop up or if the sellers attempt to make changes with which you don't agree.

Who takes over after you and the sellers agree on a sales price?

An attorney will generally take over after you and the sellers agree on a sales price and each sign a real estate contract. Your real estate agent represents you through the negotiation process until this step happens.

How much does a real estate attorney cost?

How much will this cost? That depends. Chase said that buyers can expect to pay from $450 to $650 for the services of an attorney during their home-buying process, including the time that the attorney spends at the closing table. Chase said that her office charges buyers $495 for a real estate attorney who will represent them during the buying process.

What happens if you don't pay taxes on your home?

Real estate attorneys also study title documents to make sure that other individuals or governmental bodies don't have ownership stakes in the home you want to buy. If the sellers of your home failed to pay all their property taxes, your local government might have a lien against the home. Your attorney will search title documents to make sure ...

How much does closing cost on a mortgage?

Closing your mortgage loan is far from a cheap process. You can expect to pay from 2 percent to 5 percent of your home's purchase price in closing costs, the fees your lender and other companies charge you to close your mortgage loan. It's understandable, then, that most buyers want to reduce these costs as much as they can.

What does Chase do for her clients?

Chase also helps her clients when they have questions about the mortgage process, something that is common as lenders study the bank accounts and tax returns of home buyers.

Does Chase work in real estate?

Real estate sales are handled differently in different states and jurisdictions. In the Chicago area where Chase works, for instance, real estate contracts come with financing deadlines built in. Chase, then, has to monitor these for her clients to make sure that these deadlines don't pass.

Why do you need an attorney to get your home back after foreclosure?

Because it's very difficult to get your home back after a completed foreclosure, you want to deal with violations of loss mitigation laws before the sale . Having an attorney on your side gives you a better chance of getting results before your home is sold.

How to get a mortgage modification?

Hiring an attorney may be a good idea if you want a mortgage modification, but you don't understand the application process or have a complicated situation. For example, it might be worthwhile to hire an attorney if you've spoken to your loan servicer about a modification but are confused about: 1 how to fill out the application 2 what documentation you need to submit along with an application, or 3 how to explain your financial hardship or situation in the application.

What happens if a servicer violates state law?

If your servicer violates state law while foreclosing on your home, your attorney might be able to use the violation or violations as leverage in getting you a loan modification. Keep in mind that servicers often make mistakes when servicing loans and in the foreclosure process. A lawyer could uncover errors that you won't even notice.

How long can a servicer start foreclosure?

For example, under federal law, the servicer generally can't start a foreclosure until you're more than 120 days delinquent on the loan. This period before foreclosure starts is supposed to provide you with sufficient opportunity to seek an alternative to foreclosure, like a modification. So long as you send in a complete application, the servicer also can't start the foreclosure while your application is pending. If your servicer starts the foreclosure early in violation of the law, an attorney can help stop it.

How long can a servicer be delinquent on a loan?

For example, under federal law, the servicer generally can't start a foreclosure until you're more than 120 days delinquent on the loan.

What to do if you have difficulty with foreclosure?

Ultimately, if you find yourself having difficulty with the application or your servicer isn't abiding by the law, you should consider consulting with a qualified, reputable foreclosure attorney who can help you with the process.

What to do if you aren't sure what to do?

If you aren't sure what to do—say you're facing foreclosure, but you aren't sure if a modification is right for you—and want to know about all of your options, an attorney can help you understand your legal rights and give advice about the best course of action in your situation.

What can a lawyer do for you?

A lawyer can help you resolve some of the tougher, more technical issues that might come up. These may include easements, rights of way, boundary disputes, or other issues involving the property the house is on. You may also need legal advice if the property is involved in a foreclosure or other litigation, or if you get into a dispute with the buyer or seller. Always talk to a lawyer if someone threatens to sue you.

What happens if you make an offer on a house and aren't represented by a real estate agent?

If you make an offer on a house and aren't represented by a real estate agent, the seller's agent may offer to take care of everything. This is known as “dual agency," and it can cause problems because one agent cannot truly look out for the best interests of both you and the seller.

What to do if someone threatens to sue you?

You may also need legal advice if the property is involved in a foreclosure or other litigation, or if you get into a dispute with the buyer or seller. Always talk to a lawyer if someone threatens to sue you. 5. You are concerned about the tax consequences.

What is a "for sale by owner" deal?

A “for sale by owner" deal can save you money on real estate commissions, but you still need someone to prepare the purchase agreement, deed, and other documents. A lawyer can get your paperwork in order, ensure the title is good, and help you with the fine points of negotiating the transaction. 3.

What happens when you hire a lawyer?

When you hire a lawyer, your lawyer only works for you and will make sure your interests are protected. 4. There is a problem with the property or the deal. A lawyer can help you resolve some of the tougher, more technical issues that might come up.

What to do if you are buying a home and have legal questions?

If you're buying or selling your home and have legal questions, check out our personal legal plan and talk to an independent attorney in your state .

Can you deduct home office expenses if you are a seller?

If you are the seller, you could be liable for capital gains tax if the home has increased in value. If you are the buyer, you may be able to deduct mortgage interest, home office expenses, and some or all of your property tax.

Why do you need a lawyer for a home purchase?

A lawyer can help you avoid some common problems with a home purchase or sale. For example, a seller may sign a brokerage agreement that does not deal with a number of legal issues. This happens quite often as realtors often use standard forms, expecting that they will cover all situations.

What is real estate lawyer?

A real estate lawyer is trained to handle these problems and has the most experience to deal with them.

What is the role of a realtor in a home purchase?

In the typical home purchase, the seller enters into a contract with a real estate agent, usually in writing. When the broker finds a potential buyer, they conduct the negotiations and most often act as an intermediary (the go-between).

What is the formal contract for the sale of a home?

Once an informal agreement is reached, the buyer and seller enter into a formal written contract for the sale of the new home. This is known as the purchase agreement . The home buying process then follows the following steps:

What is the most important document in a home purchase?

The purchase agreement is the single most important document in the transaction. Although standard printed forms are useful, a lawyer is helpful in explaining the forms and making changes and additions to reflect the home buyer's and the seller's desires. There are many issues that may need to be addressed in the purchase agreement, such as:

Can a seller be forced to pay more than one brokerage commission?

In the absence of an agreement to the contrary, the seller may become liable to pay a brokerage commission even if a sale does not occur, or they may be forced to pay more than one brokerage commission. If the agreement allows the seller the right to negotiate on their own behalf, however, you may avoid this potential problem.

Who receives the purchase price bargained for in the contract?

Finally, the property is transferred from the seller to the buyer, and the seller receives the purchase price bargained for in the contract.

The Role of An Attorney

Unexpected Issues

Easing The Tensions

• Marcia Clarke, a real estate broker with M C Realty Consulting & Management in Brooklyn, said that attorneys play an important role at the closing table. Attorneys calm their clients when they get overwhelmed, she said. And they help ease the tensions in the room thanks to their expertise; buyers feel confident that a professional is looking out fo...

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