Foreclosures in MA are part of the overall foreclosure crisis in America. Consumers at present have 3 years to argue their case to lenders when there is fraud or deceit involved. The homeowner is still required to pay their mortgage however, even if less than judicious circumstances exist in its processing.
The following article touches on the subject of Foreclosures and homeowners in general.
Consumers, Senators Criticize Fed’s Proposed Mortgage Rule
by Credit.com on 01/06/2011
Under a new proposal from the Federal Reserve Board, which would amend the consumer protection laws passed over the summer, consumers would have to pay off a home loan even after they received bad information, before it could be terminated, according to a report from Dow Jones Newswires. Currently, Americans have three years to argue that lenders broke consumer protection laws, and perhaps force lenders to refinance or modify the loan.
“In this time of record foreclosures and reports of systemic problems with the operations of the largest mortgage servicers, the proposed revisions are unfortunate and unnecessary,” a group of Democratic U.S. Senators wrote to the Fed, according to the report. “The mortgage market needs greater oversight and accountability to restore borrower confidence lost in the mortgage crisis. The proposed rules would undermine this goal.”
The letter was signed by Senators Sherrod Brown of Ohio, Tim Johnson of South Dakota, and former Senator Chris Dodd, who used to head the Senate Banking Committee, the report said. A Fed spokeswoman told the news organization that the lawmakers’ suggestion will be taken under advisement.
Many consumers have been victimized by improperly handled mortgages over the last few years, and many have faced foreclosure as a result.
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Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.
Showing posts with label Dedham MA closing. Show all posts
Showing posts with label Dedham MA closing. Show all posts
Friday, January 14, 2011
Friday, December 10, 2010
Refinance Appraisal on Property Subject to Lender Preferences
When considering a MA Closing Attorney, be sure to ask which elements of the home buying process will be handled by your attorney and realtor, and which you will be responsible for handling on your own. In most cases, your realtor will walk you through the pre-closing process, which does include an appraisal on your existing home, however in the event of refinancing, you will generally be offered an appraisal by the lending company. And in most cases, they will not accept your own appraisal or any previous appraisals in determining the current value of your property.
An excellent question and answer article concerning the appraisal process during a refinance loan application follows below.
Should homeowners get their own appraisal before refinancing?
By Ilyce R. Glink
12/10/2010
Q: We've been waiting to refinance because we felt like mortgage interest rates would go lower. But now it looks like interest rates have bottomed out and so we've decided to move ahead.
But at the same time, the value of our neighborhood appears to be falling. With local home values having fallen so dramatically, it seems like we're right on the borderline of having 20 percent in equity. In fact, the amount we owe on our mortgage might be more than 80 percent of the home's value. It's borderline.
Do we risk paying $400 or so for an appraisal that might show us we can't refinance?
Also, everything I read says not to refinance if you're going to move within five years. We might move within five years. In fact, we talk about moving all the time. But one quote I got from a mortgage broker showed us that even with rolling the closing costs into a new 25-year loan, we'd still come out with a lower monthly payment than what we have now.
So does that conventional wisdom still apply? Is there something I'm missing or should we just go ahead and refinance even if we move in a year?
Finally, where is the best place to shop for loans? Should we go with a mortgage broker or call around? I'm getting nowhere with our current big box lender.
A: You've asked some excellent questions that I am sure many of your fellow homeowners are thinking about as well. Let's start at the top.
While interest rates appear to have bottomed out, they could stay at these near-historic low levels for quite some time. (It's my feeling that when 30-year fixed-rate mortgages are available at 4.5 percent or less, it's a sign of how weak our national and world economies are.)
But you're facing an even bigger problem, which is falling home values. The latest figures seem to show that home values are again declining after rising slightly this summer. If you're barely at 20 percent equity in your property today, depending on where you live, it's possible that your home equity will shrink further before you can close on your refinance.
That brings up another issue: If you don't have at least 20 percent equity in your home, you'll have to pay a higher interest rate for your loan or pay for private mortgage insurance (PMI), which is expensive these days, and that additional cost could easily wipe out any savings you would garner from refinancing.
Should you pay $400 for an appraisal? Probably not.
You're better off starting the refinance process and having the lender order the appraisal. If you order an appraisal separately, there is no assurance that the lender you choose will arrive at the same appraised value. The lender will not use your appraisal, and you'll be out the money for the appraisal. If your bank sends out an appraiser and the property fails to appraise at a high enough price for you to refinance, you should make sure that you only lose the cost of the appraisal if you decide not to move forward with the refinance.
As for refinancing even if you're contemplating a move, I think if you can save money from the get-go and pay off the costs of refinance within a relatively short period of time (say, six to eight months), there's no reason not to refinance.
Having said that, if you are paying closing costs and those costs are rolled into the amount you will owe on the mortgage, you may not be getting a great deal even if your monthly payment to the lender goes down. If you sell within one year of refinancing, you'll have to repay all of those closing costs. So, you need to make sure the savings on your monthly payment are sufficiently high to counter any closing costs.
Finally, you should shop for loans at a variety of different lenders, including a big box lender (not yours, but another one), a credit union (if you belong to one or can join one), a mortgage broker, a small local bank and perhaps online.
------------------------------------------
Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.
An excellent question and answer article concerning the appraisal process during a refinance loan application follows below.
Should homeowners get their own appraisal before refinancing?
By Ilyce R. Glink
12/10/2010
Q: We've been waiting to refinance because we felt like mortgage interest rates would go lower. But now it looks like interest rates have bottomed out and so we've decided to move ahead.
But at the same time, the value of our neighborhood appears to be falling. With local home values having fallen so dramatically, it seems like we're right on the borderline of having 20 percent in equity. In fact, the amount we owe on our mortgage might be more than 80 percent of the home's value. It's borderline.
Do we risk paying $400 or so for an appraisal that might show us we can't refinance?
Also, everything I read says not to refinance if you're going to move within five years. We might move within five years. In fact, we talk about moving all the time. But one quote I got from a mortgage broker showed us that even with rolling the closing costs into a new 25-year loan, we'd still come out with a lower monthly payment than what we have now.
So does that conventional wisdom still apply? Is there something I'm missing or should we just go ahead and refinance even if we move in a year?
Finally, where is the best place to shop for loans? Should we go with a mortgage broker or call around? I'm getting nowhere with our current big box lender.
A: You've asked some excellent questions that I am sure many of your fellow homeowners are thinking about as well. Let's start at the top.
While interest rates appear to have bottomed out, they could stay at these near-historic low levels for quite some time. (It's my feeling that when 30-year fixed-rate mortgages are available at 4.5 percent or less, it's a sign of how weak our national and world economies are.)
But you're facing an even bigger problem, which is falling home values. The latest figures seem to show that home values are again declining after rising slightly this summer. If you're barely at 20 percent equity in your property today, depending on where you live, it's possible that your home equity will shrink further before you can close on your refinance.
That brings up another issue: If you don't have at least 20 percent equity in your home, you'll have to pay a higher interest rate for your loan or pay for private mortgage insurance (PMI), which is expensive these days, and that additional cost could easily wipe out any savings you would garner from refinancing.
Should you pay $400 for an appraisal? Probably not.
You're better off starting the refinance process and having the lender order the appraisal. If you order an appraisal separately, there is no assurance that the lender you choose will arrive at the same appraised value. The lender will not use your appraisal, and you'll be out the money for the appraisal. If your bank sends out an appraiser and the property fails to appraise at a high enough price for you to refinance, you should make sure that you only lose the cost of the appraisal if you decide not to move forward with the refinance.
As for refinancing even if you're contemplating a move, I think if you can save money from the get-go and pay off the costs of refinance within a relatively short period of time (say, six to eight months), there's no reason not to refinance.
Having said that, if you are paying closing costs and those costs are rolled into the amount you will owe on the mortgage, you may not be getting a great deal even if your monthly payment to the lender goes down. If you sell within one year of refinancing, you'll have to repay all of those closing costs. So, you need to make sure the savings on your monthly payment are sufficiently high to counter any closing costs.
Finally, you should shop for loans at a variety of different lenders, including a big box lender (not yours, but another one), a credit union (if you belong to one or can join one), a mortgage broker, a small local bank and perhaps online.
------------------------------------------
Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.
Wednesday, November 17, 2010
What a Real Estate Attorney Brings to the Table of Your Closing
Lots of people are going the do-it-yourself route in many areas of legal representation, believing, often mistakenly, that they can do the job just as well themselves for what they would spend on an attorney to do the work. Other than criminal representation in court, there are few areas of the law where this is less true than in real estate.
The sheer amount of paperwork alone would be alarming to anyone not well versed in real estate law. When taken in combination with the figures and documentation that must accompany even the simplest real estate closing, it becomes quite apparent that this is not a place for an amateur.
In order to effectively, and legally, have your closing, your real estate attorney must complete a title search, making certain there are no liens or encumbrances on the property; makes sure that there is title insurance on the title; coordinate with the lender and the seller, to make sure that the necessary documents, such as the deed, promissory note, mortgage and any inspections among others, are at the closing.
The closing attorney will act as the coordinator for all other parties involved in the purchase or sale. A closing attorney will perform such time consuming tasks as scheduling appointments, intake sessions, and the preparation of the many varied and lengthy closing documents that will be needed at the final meeting.
Some responsibilities of the closing attorney include:
Remarkably, the closing attorney's job does not stop there. They are responsible for several post-closing tasks that bring the entire transaction full circle and to completion including recording the deed, processing the loan funding, and running the title for any changes since the first time.
If you are in the process of buying a home, or are planning to buy a home in the near future, and would like more information on what your closing in MA or CT will entail, contact Crowley & Cummings for an appointment today.
------------------------------------------
Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.
The sheer amount of paperwork alone would be alarming to anyone not well versed in real estate law. When taken in combination with the figures and documentation that must accompany even the simplest real estate closing, it becomes quite apparent that this is not a place for an amateur.
In order to effectively, and legally, have your closing, your real estate attorney must complete a title search, making certain there are no liens or encumbrances on the property; makes sure that there is title insurance on the title; coordinate with the lender and the seller, to make sure that the necessary documents, such as the deed, promissory note, mortgage and any inspections among others, are at the closing.
The closing attorney will act as the coordinator for all other parties involved in the purchase or sale. A closing attorney will perform such time consuming tasks as scheduling appointments, intake sessions, and the preparation of the many varied and lengthy closing documents that will be needed at the final meeting.
Some responsibilities of the closing attorney include:
- Payment of realtor commissions, and any other necessary discharges or payments including but not limited to taxes, final utilities and realtor commissions
- Specific Title V and condominium certifications
- Disclosure of lending fees and closing costs, and funding of escrow account
Remarkably, the closing attorney's job does not stop there. They are responsible for several post-closing tasks that bring the entire transaction full circle and to completion including recording the deed, processing the loan funding, and running the title for any changes since the first time.
If you are in the process of buying a home, or are planning to buy a home in the near future, and would like more information on what your closing in MA or CT will entail, contact Crowley & Cummings for an appointment today.
------------------------------------------
Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.
Sunday, November 7, 2010
REO and Foreclosure Services in MA
Bank and lender owned property inventories are substantial due to the housing and foreclosure crisis that has occurred in the past decade. REO properties, are real estate owned properties that are held in ownership by the lender after a foreclosure, repossession and auction, once the title transfers to the bank.
Because the property did not sell for the minimum price at auction, unless the lender is then able to sell or transfer the property to another paying owner, the bank will have to hold the property until someone else wants to buy it.
The role of the real estate attorney in the REO property process is to work on behalf of the lender as their representative in the sale of the property. At the very least, an experienced REO attorney needs to know the ins and outs of complicated conveyancing and complex title issues, foreclosure law, and municipal regulations in the area in which the property is located.
Most lenders will maintain a Real Estate Attorney to complete their REO transactions as they are obtained, including immediate title searches and clearing any existing issues relating to the conveyance early in the process. It is not advisable to use the Foreclosure Attorney as the REO attorney however, as this can cause delays in the title search process, and result in further losses and delays for the lender.
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Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.
Because the property did not sell for the minimum price at auction, unless the lender is then able to sell or transfer the property to another paying owner, the bank will have to hold the property until someone else wants to buy it.
The role of the real estate attorney in the REO property process is to work on behalf of the lender as their representative in the sale of the property. At the very least, an experienced REO attorney needs to know the ins and outs of complicated conveyancing and complex title issues, foreclosure law, and municipal regulations in the area in which the property is located.
Most lenders will maintain a Real Estate Attorney to complete their REO transactions as they are obtained, including immediate title searches and clearing any existing issues relating to the conveyance early in the process. It is not advisable to use the Foreclosure Attorney as the REO attorney however, as this can cause delays in the title search process, and result in further losses and delays for the lender.
------------------------------------------------------------------------------------------
Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.
Monday, November 1, 2010
MA Title Search and Closing Costs
Whenever anyone buys or sells real estate, and uses any kind of mortgage financing, the mortgage company will require that a title search is performed before an approval will be granted for the closing to occur.
The purpose of a title search is to enable the company providing the funding for the property to be certain that they will own the property outright if you should default on your mortgage payments. In order to do this, the mortgage company or finance company first needs to determine that the property is free from all liens and encumbrances of any nature that could effect the sale.
The main focus of a title search is to satisfy the criteria of whether the property is free of liens, whether the seller has the legal right to sell the property, and whether there are any restrictions on the property such as easements, or land use allowances.
The cost for a title search is included in your closing costs, and the closing will generally not proceed without a clear title.
Your MA real estate attorney will be able to walk you through each closing process and cost and give you the answers to any questions you may have about the procedures being used at your closing.
If you are considering the purchase of real estate in Dedham MA, contact the Real Estate Law Firm of Crowley & Cummings LLC for expert and timely advice and counseling.
---------------------------------------------------------------------------------------
Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.
The purpose of a title search is to enable the company providing the funding for the property to be certain that they will own the property outright if you should default on your mortgage payments. In order to do this, the mortgage company or finance company first needs to determine that the property is free from all liens and encumbrances of any nature that could effect the sale.
The main focus of a title search is to satisfy the criteria of whether the property is free of liens, whether the seller has the legal right to sell the property, and whether there are any restrictions on the property such as easements, or land use allowances.
The cost for a title search is included in your closing costs, and the closing will generally not proceed without a clear title.
Your MA real estate attorney will be able to walk you through each closing process and cost and give you the answers to any questions you may have about the procedures being used at your closing.
If you are considering the purchase of real estate in Dedham MA, contact the Real Estate Law Firm of Crowley & Cummings LLC for expert and timely advice and counseling.
---------------------------------------------------------------------------------------
Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.
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