when refinancing, is personal lawyer as well as bank lawyer recommended

by Willis Shanahan 4 min read

Do I need a lawyer to refinance my mortgage?

Nov 01, 2011 · This is a very common question. You should be aware that an attorney can only represent one client. Representing both the borrower and the lender would put the attorney in a conflict interest situation. If you proceeded without retaining your own attorney, you would be representing yourself. The bank's attorney is NOT your attorney.

Should I hire the same attorney as my lender?

Jan 10, 2020 · Jan 10 2020 Real Estate Generally speaking, you will need a lawyer to assist you in refinancing your mortgage, but you will not need a lawyer if you renew your mortgage. Let’s breakdown three of the most common scenarios: you refinance with a new mortgage lender, you refinance with the same mortgage lender, and

When can I refinance my mortgage?

You may wish to hire a mortgage lawyer if you need help with mortgage refinancing. Your attorney can provide you with guidance during the negotiation phases, and can also explain your contract rights to you. Also, you may need to hire a lawyer if you will be filing a lawsuit or if you’ll be involved in any type of legal proceeding.

Is refinancing an existing loan a good idea?

Re: Do I need a lawyer to refinance my mortgage? Not unless you feel uncomfortable dealing with the financial and title issues that may arise. Keep in mind that although you pay a fee to the lender's attorney---he or she does not represent you.

Should I select my own attorney for refinance?

Refinancing can replace your current home loan with one that has a lower or fixed interest rate or a longer payment period that reduces your monthly bill. Refinancing has its complexities, but most homeowners don't need the services of an attorney to navigate the process.

What should you not do when refinancing?

10 Mistakes to Avoid When Refinancing a Mortgage1 - Not shopping around. ... 2- Fixating on the mortgage rate. ... 3 - Not saving enough. ... 4 - Trying to time mortgage rates. ... 5- Refinancing too often. ... 6 - Not reviewing the Good Faith Estimate and other documentats. ... 7- Cashing out too much home equity. ... 8 – Stretching out your loan.More items...

Do you need a lawyer to refinance your mortgage in Canada?

While you do not have to hire a lawyer to complete the refinance of your home, it is always a good idea. There are many benefits to doing so. Using the lender's legal services might be tempting as it can sometimes be cheaper, but doing so can cause the refinancing process to take longer than it needs to.Jul 23, 2020

Do I need a lawyer to refinance my mortgage in CT?

Usually in Connecticut that is just a referral, it is not a requirement that you use that attorney. Referrals from friends or co-workers are also helpful. But you need a real estate attorney who is experienced with refinance closings, so someone who has a good personal injury attorney may not be a useful referral.Dec 21, 2008

Do you skip a payment when you refinance?

You won't skip a monthly payment when you refinance, even though you might think you are. When you refinance, you typically don't make a mortgage payment on the first of the month immediately after closing. Your first payment is due the next month.Jan 8, 2021

How many times is credit checked during refinance?

Many borrowers wonder how many times their credit will be pulled when applying for a home loan. While the number of credit checks for a mortgage can vary depending on the situation, most lenders will check your credit up to three times during the application process.Nov 11, 2021

What does a lawyer do in mortgage refinance?

Residential mortgage refinancing or financing Using a lawyer ensures you understand your obligations and liabilities under the mortgage. Mortgages are used to secure both regular housing home equity loans and secured lines of credit. We explain to you what you need to know about the mortgage.Jul 11, 2021

Do you need a lawyer when you pay off your mortgage?

Do I need a lawyer to buy a house? Yes. Unlike in some other provinces, where a notary is sufficient legal authority to oversee property transfers, in Alberta it's mandatory to work with a lawyer when buying a home.

Does everyone get approved for refinancing?

Unfortunately, not everyone will qualify for mortgage refinancing. Here are a few reasons why your application could be denied: Your credit score is too low: If you have poor credit, focus on improving it. Be sure to make all of your monthly payments on time and pay down existing debt.Mar 28, 2022

Is CT an attorney state?

Connecticut Officially Becomes an Attorney Closing State.Jul 15, 2019

Is Connecticut an attorney closing state?

Prohibits out of state attorneys and non-attorney Notaries from conducting closings for most mortgage loans in Connecticut. This excludes home equity lines of credit, other transactions that don't require the issuance of a title insurance policy, and property located in other states.

Is Connecticut an attorney state for real estate?

Every state has its own laws regarding real estate sales. In some states, hiring a legal professional is optional for home buyers or sellers, but Connecticut is not one of those. In Connecticut, state law requires all home buyers and sellers to involve a real estate attorney in the process.Aug 23, 2019

Why do people refinance their mortgages?

Many people seek mortgage refinancing because they are already having trouble making payments. Then, refinancing may simply complicate the situation and lead the person into more debt. Another legal dispute is where the primary and second or third mortgage lenders are competing for the debt payments of the borrower.

What is mortgage refinancing?

Mortgage refinancing generally involves an adjustment or reworking of existing mortgage terms in order to reflect recent changes in the borrowers situation (such as a new job or a loss of a job). In some cases, this can involve negotiations with the current mortgage lender.

When does refinancing occur?

In general, mortgage refinancing typically occurs in the middle of a mortgage payment plan, after the first payments have been made, and adjustments are becoming necessary.

Is refinancing available?

Mortgage refinancing may not always be available. The availability of mortgage refinancing may depend on several factors such as: The terms of agreement between the original mortgage lender and the borrower. State laws and guidelines. The borrower’s credit history and credit score.

Can a refinance result in foreclosure?

Lastly, if mortgage refinancing leads to complete failure to make payments, this can result in a foreclosure proceeding. This means that the borrower may forfeit ownership of their home, and the home may be subject to sale. Foreclosure can be avoided in certain situations depending on state property laws.

What can a lawyer do for a refinance?

A local attorney can explain the legal issues you are facing in refinancing your mortgage and assist you with contract terms and negotiation. In some states, the attorney can also act as your closing agent, and explain the paperwork affiliated with the refinance transaction.

What to consider when refinancing a mortgage?

While you are paying off the existing mortgage on your home, you are also incurring more debt. Finalizing and closing on your refinance may involve fees from the lender and the closing agent related to the transaction, as well.

What is a second mortgage and a HELOC?

Second Mortgages and HELOCs: The funds from a refinance are generally used to pay off the first mortgage on the property. If you have liens on the property, a second mortgage or a Home Equity Line of Credit (also known as a HELOC), refinancing can become more challenging.

What happens if a borrower fails to pay their mortgage?

For example, If the borrower fails to make their monthly mortgage payments, the lender can file a lawsuit that can result in foreclosure. Unfair contract terms may be disputed in court, which may result in a re-writing of the terms of the mortgage in order to protect the borrower’s rights.

Why do people refinance?

People refinance for many reasons, including getting a lower monthly payment or reducing their interest rates. In some cases, refinancing can have many benefits, including shortening the term or your loan, getting rid of mortgage insurance fees, or switching from an adjustable rate mortgage to a fixed rate mortgage.

How long does it take to pay off a mortgage before it is available?

Prepayment Penalties/Loan Availability: Some loans include penalty fees if you pay off the mortgage (whether you sell the home or refinance) before a certain period of time, usually between two and five years, has passed from the original loan date.

Does a refinance cost an appraisal?

For example, because a refinance is a whole new mortgage loan, you may incur fees for an appraisal, title search, and lender applications fees. Although a refinance can have many financial benefits, it is important to carefully consider whether the costs of refinancing outweigh the potential savings.

How to notify a lawyer of a refinance?

You should notify your lawyer of your intention to refinance as soon as possible and let the bank (or mortgage broker) know the name of the law firm, their email address, postal address and phone number.

What are break costs on a mortgage?

What are the break costs? Break costs are the fees your bank may charge if you pay off a loan earlier than the term it is fixed for. If your current mortgage is on a fixed interest rate (as a opposed to a floating interest rate), it is likely you will incur break costs. Your bank will be able to give you an estimate of the break costs. You should take the break costs into consideration when calculating if refinancing is in your best interests. You may be able to get your new bank or even your existing bank to cover the break fees.

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 most important service a buyer's attorney does?

The effect is that for most real estate transactions, reviewing/negotiating the P&S, which is typically the most important service that a buyer’s attorney does, is much more substantial than just reviewing a form P&S and perhaps adding a few boilerplate provisions. Almost any experienced real estate attorney would agree that whatever the version, ...

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 ...

When did the TRID regulations go into effect?

Especially with the new TRID regulations, that went into effect October 3, 2015, it is crucial to the lender that all the paperwork at the closing be accurate, disclosed and in compliance with federal regulations. For a number of reasons, Massachusetts homebuyers absolutely should have an attorney representing them during their home purchase .

David R. Lucas

The short answer is no, however don't think that a simple rate change means simple documentation by the bank. You'll still sign away your "first-born"! A good lender will let you choose your own attorney to handle the refinance closing. I would ask the lender about that option...

George M. Megaloudis

Non attorney closings are illegal in Massachusetts. If the lender isn't using a lawyer and just a notary, the transaction doesn't smell right. Typically, most people don't use an attorney on a refinance, but there seems to be something about this deal that isn't sitting well with you.

Kati M. Amarantes

It is always a good idea to have an attorney review your mortgage documents. Do you have to have one, no, but again I would strongly recommend you do. For a simple refinance, it should not cost a lot to just have the peace of mind of the review of the documents. However, it is solely your choice...