Whatever your particular reason of needing a real estate lawyer, you are still going to need to find one. There are a couple of things to keep in mind when selecting one. Here are some tips.
1. Find a real estate lawyer. By this, it means someone who practices primarily in the field of real estate. Most lawyers own homes, so they think they can handle real estate transactions. This typically is not true. Real estate law can be complex, so get someone that already knows it.
2. Go local. Real estate laws tend to be state wide, but regulations tend to be local. Obviously, it depends on the situation in your state, but you need to seriously consider getting a lawyer in the area you are selling or buying.
3. Comfort Level - Many people just choose any old lawyer. This is a mistake. Get one who speaks your language and you are comfortable. If you like aggressive people, get an aggressive lawyer. If you like yellers, get a yeller. If you prefer a more poised attorney, a yeller is probably not a good choice.
4. Know Your Purpose - Lawyers have distinct styles. Some prefer to try to find solutions to disputes. Others prefer to crush the other side. You need to know what your goal is when interviewing lawyers and communicate it clearly. Their reaction should give you an idea of whether they are a good choice or not.
Perhaps the biggest rule to remember when dealing with lawyers is your role. You are the client. They represent you. Most people hire a lawyer and then ask for advice on what they should do and what decisions they should make. This makes lawyers uncomfortable because they don't know you from a hill of beans. Know what you want and communicate it to them. Their job is then to go get it.
Family law attorney, Eric M. Gansberg, Esq., is located on Staten Island, New York, and represents men and women with divorce, child support and family law throughout the New York City area, including Staten Island, Annadale, Arden Heights, Bay Terrace, Dongan Hills, Eltingville, Emerson Hill, Fort Wadsworth, Graniteville, Grant City, Grasmere, Great Kills, Greenridge, Grymes Hill, Heartland Village, Huguenot, Lighthouse Hill, Midland Beach, New Dorp, New Springville, Oakwood, Old Town NY, Pleasant Plains, Prince's Bay, Randall Manor, Richmond Valley Richmondtown, Rosebank, Rossville, Shore Acres, Silver Lake, South Beach, St. George, Tottenville Beach, Ward Hill, Westerleigh, Willowbrook, Woodrow, other areas of Staten Island, New York City, Brooklyn, Manhattan, Queens, Bronx, Long Island, Suffolk County, Nassau County, Westchester County, and Rockland County.
Showing posts with label new york real estate attorney. Show all posts
Showing posts with label new york real estate attorney. Show all posts
Sunday, September 12, 2010
Monday, March 8, 2010
Predatory Lending
Lending can become predatory when aggressive tactics are used to convince a borrower to agree to unfair or abusive loan terms and conditions. Although there is no single definition for predatory lending, it generally occurs when a lending company, broker, or even home improvement contractor takes undue advantage of borrowers by deception, fraud, or manipulation.
Predatory lenders charge excessive fees, interest rates, and pre-payment penalties and often require balloon payments. Frequently, lending decisions are made without considering the borrower's ability to repay, and predatory lenders may permit repeated refinancing over a short period of time without any economic gain for the borrower.
Although predatory lending occurs across various demographic groups, predatory terms are often targeted at the elderly, minorities, and low-income homeowners. Victims of predatory lending practices often face financial crisis, including bankruptcy and home foreclosure, as a result of the deceptive conduct.
Anti-Predatory Lending Laws
Several laws are designed to protect consumers against predatory/abusive lending practices. On the federal level, the Truth in Lending Act (TILA) requires lenders to disclose the APR and loan terms, and the Home Ownership and Equity Protection Act, which is an amendment to TILA was specifically designed to identify predatory mortgage loans. In addition, other consumer protection laws such as the Federal Trade Commission Act (FTC Act), have provisions that deter predatory lending practices.
Moreover, many states have their own anti-predatory laws that are designed to address abusive mortgage lending by restricting the terms or provisions of certain loans. In addition, states have increased the registration or licensing requirements of mortgage brokers and mortgage lenders and have undertaken enforcement activities under existing consumer protection laws and regulations to combat abusive lending.
Numerous federal, state, and non-profit agencies offer assistance for victims of predatory lending practices, including the U.S. Department of Justice, Housing and Urban Development (HUD), state and local consumer protection agencies, state attorney general's office, debt counseling agencies, consumer protection agencies and other nonprofit organizations such as the AARP.
Are you a Victim of Predatory Lending?
Before borrowing money, particularly where your house is used for collateral, read all terms and conditions of the loan carefully and honestly evaluate your ability to repay the loan. Refuse to go through with a lending transaction if you can't afford the repayment plan, if the number of "points" (up-front interest) on the loan is high, or if the terms are changed at the last moment. If you have entered into a loan agreement with terms and conditions that appear predatory, it is important to act quickly to reduce the risk of harm. For certain transactions, you may have the right to rescind the loan if you act within 3 days of signing the agreement. Otherwise, you may need to take additional steps to manage your finances and protect your home against foreclosure.
Victims of predatory lending practices should report any predatory activity to appropriate federal, state, and local agencies. If your loan problem relates to an FHA mortgage origination, underwriting, appraisals or foreclosures, you can seek assistance from HUD National Servicing Center. For non-FHA mortgage problems, including non-disclosure of interest rates and finance charges, prepayment penalties, credit life insurance, fraud, deception, etc., you should contact the appropriate agency to file a complaint against the lender.
Predatory lenders charge excessive fees, interest rates, and pre-payment penalties and often require balloon payments. Frequently, lending decisions are made without considering the borrower's ability to repay, and predatory lenders may permit repeated refinancing over a short period of time without any economic gain for the borrower.
Although predatory lending occurs across various demographic groups, predatory terms are often targeted at the elderly, minorities, and low-income homeowners. Victims of predatory lending practices often face financial crisis, including bankruptcy and home foreclosure, as a result of the deceptive conduct.
Anti-Predatory Lending Laws
Several laws are designed to protect consumers against predatory/abusive lending practices. On the federal level, the Truth in Lending Act (TILA) requires lenders to disclose the APR and loan terms, and the Home Ownership and Equity Protection Act, which is an amendment to TILA was specifically designed to identify predatory mortgage loans. In addition, other consumer protection laws such as the Federal Trade Commission Act (FTC Act), have provisions that deter predatory lending practices.
Moreover, many states have their own anti-predatory laws that are designed to address abusive mortgage lending by restricting the terms or provisions of certain loans. In addition, states have increased the registration or licensing requirements of mortgage brokers and mortgage lenders and have undertaken enforcement activities under existing consumer protection laws and regulations to combat abusive lending.
Numerous federal, state, and non-profit agencies offer assistance for victims of predatory lending practices, including the U.S. Department of Justice, Housing and Urban Development (HUD), state and local consumer protection agencies, state attorney general's office, debt counseling agencies, consumer protection agencies and other nonprofit organizations such as the AARP.
Are you a Victim of Predatory Lending?
Before borrowing money, particularly where your house is used for collateral, read all terms and conditions of the loan carefully and honestly evaluate your ability to repay the loan. Refuse to go through with a lending transaction if you can't afford the repayment plan, if the number of "points" (up-front interest) on the loan is high, or if the terms are changed at the last moment. If you have entered into a loan agreement with terms and conditions that appear predatory, it is important to act quickly to reduce the risk of harm. For certain transactions, you may have the right to rescind the loan if you act within 3 days of signing the agreement. Otherwise, you may need to take additional steps to manage your finances and protect your home against foreclosure.
Victims of predatory lending practices should report any predatory activity to appropriate federal, state, and local agencies. If your loan problem relates to an FHA mortgage origination, underwriting, appraisals or foreclosures, you can seek assistance from HUD National Servicing Center. For non-FHA mortgage problems, including non-disclosure of interest rates and finance charges, prepayment penalties, credit life insurance, fraud, deception, etc., you should contact the appropriate agency to file a complaint against the lender.
Surprise Closing Costs
Once the negotiations are over and a buyer and seller come to an agreement over the purchase price for a home (or any type of real estate, for that matter), a contract is signed, and it's time to close the deal. In almost all real estate transactions, there are expenses and fees associated with the closing, or "closing costs." Closing costs are usually charged by the buyer's lender the bank that gave the buyer a mortgage to pay for the home-and typically include charges for things like fees for:
•Processing the mortgage
•The title company's search to make sure that no one else claims to own the property and that there are no liens against it
•Recording the deed with the appropriate government office in the county where the land is located
Usually, the sales contract states that each party, the buyer and the seller, is required to pay their own closing costs. But, if you're not careful, you could end up paying some costs and expenses that you weren't anticipating. To avoid these surprise closing costs, you need to read the closing papers carefully, or make sure that you have an experienced real estate law attorney at the closing with you.
Surprise!
How would you react if you sold property under a contract that called for the buyer to pay all of his or her closing costs, waited a month for the buyer to get financing, and then at the closing, found out that you were being charged for things like:
•Tax Service Fee $55.50
•Inspection Fee $35.00
•Photos $15.00
•Lender's Inspection Fee $80.00
•Document Review Fee $25.00
•Lot Review $25.00
•Appraisal Inspection $50.00
•Filing Fee $50.00
All of these fees were charged to sellers in actual closing statements, even though the contract called for the buyers to pay them. You can, or course, protest the charges, but chances are that the closing or escrow agent, who usually doesn't represent either the buyer or seller, will say, "Oh, HUD (or FHA or VA) requires the seller to pay these charges."
Well, that's not necessarily right. In fact, neither the Federal Housing Administration (FHA) (or its parent organization, the U.S. Department of Housing and Urban Development (HUD)), nor the U.S. Department of Veterans Affairs (VA) requires the seller to pay anything. Nor do they have the authority to require payment.
To be accurate, the closing agent should tell you that these agencies don't allow these charges to be assessed against the buyer-borrower, but they allow them to be charged to the seller.
Plan of Action
What if the seller doesn't want to pay for these expenses, which the lender supposedly incurred in making a loan to the buyer, because he feels that the sales contract was negotiated in good faith? Typically, the seller has agreed to pay:
•The sales commission, if a real estate agent is involved
•The cost of preparing the deed
•Pest inspection and clearance letter
•A title search (sometimes)
•One-half of the reasonable and customary attorney's closing fee
Even these items are negotiable. The buyer could agree to pay any and all expenses involved with the transfer of ownership. But, the law requires nothing except that the sales contract:
•Be in writing
•Reflects the true intent of the parties
•Is signed by parties, who are "competent," that is, of legal age and sound mind
So, why, then, do we find even carefully negotiated and expressly written purchase agreements being flagrantly misapplied by some lenders? While the federal government requires that lenders provide the buyer with a "good faith estimate of closing costs" well before the closing date, the seller gets no such estimate until the closing. The real estate agent may offer an estimate, but usually doesn't know what, if any, hidden or ambiguous "fees and inspections" may be added later because there is no consistency among lenders regarding fees assessed to the seller.
In the end, you need to ask about closing costs and get a written estimate. Some lenders, and particularly mortgage companies, as opposed to banks and savings and loan companies, have discovered that most sellers are either simply naive about closing costs or aren't about to kill the sale at the last minute because of a couple hundred dollars in excess charges they're bullied into paying.
•Processing the mortgage
•The title company's search to make sure that no one else claims to own the property and that there are no liens against it
•Recording the deed with the appropriate government office in the county where the land is located
Usually, the sales contract states that each party, the buyer and the seller, is required to pay their own closing costs. But, if you're not careful, you could end up paying some costs and expenses that you weren't anticipating. To avoid these surprise closing costs, you need to read the closing papers carefully, or make sure that you have an experienced real estate law attorney at the closing with you.
Surprise!
How would you react if you sold property under a contract that called for the buyer to pay all of his or her closing costs, waited a month for the buyer to get financing, and then at the closing, found out that you were being charged for things like:
•Tax Service Fee $55.50
•Inspection Fee $35.00
•Photos $15.00
•Lender's Inspection Fee $80.00
•Document Review Fee $25.00
•Lot Review $25.00
•Appraisal Inspection $50.00
•Filing Fee $50.00
All of these fees were charged to sellers in actual closing statements, even though the contract called for the buyers to pay them. You can, or course, protest the charges, but chances are that the closing or escrow agent, who usually doesn't represent either the buyer or seller, will say, "Oh, HUD (or FHA or VA) requires the seller to pay these charges."
Well, that's not necessarily right. In fact, neither the Federal Housing Administration (FHA) (or its parent organization, the U.S. Department of Housing and Urban Development (HUD)), nor the U.S. Department of Veterans Affairs (VA) requires the seller to pay anything. Nor do they have the authority to require payment.
To be accurate, the closing agent should tell you that these agencies don't allow these charges to be assessed against the buyer-borrower, but they allow them to be charged to the seller.
Plan of Action
What if the seller doesn't want to pay for these expenses, which the lender supposedly incurred in making a loan to the buyer, because he feels that the sales contract was negotiated in good faith? Typically, the seller has agreed to pay:
•The sales commission, if a real estate agent is involved
•The cost of preparing the deed
•Pest inspection and clearance letter
•A title search (sometimes)
•One-half of the reasonable and customary attorney's closing fee
Even these items are negotiable. The buyer could agree to pay any and all expenses involved with the transfer of ownership. But, the law requires nothing except that the sales contract:
•Be in writing
•Reflects the true intent of the parties
•Is signed by parties, who are "competent," that is, of legal age and sound mind
So, why, then, do we find even carefully negotiated and expressly written purchase agreements being flagrantly misapplied by some lenders? While the federal government requires that lenders provide the buyer with a "good faith estimate of closing costs" well before the closing date, the seller gets no such estimate until the closing. The real estate agent may offer an estimate, but usually doesn't know what, if any, hidden or ambiguous "fees and inspections" may be added later because there is no consistency among lenders regarding fees assessed to the seller.
In the end, you need to ask about closing costs and get a written estimate. Some lenders, and particularly mortgage companies, as opposed to banks and savings and loan companies, have discovered that most sellers are either simply naive about closing costs or aren't about to kill the sale at the last minute because of a couple hundred dollars in excess charges they're bullied into paying.
Loan Modification Attorney Facts
For HAMP, your loan must be under $729,750. But to refinance the loan, it must be serviced by either Fannie Mae or Freddie Mac. If you are looking for a loan modification, you may still be entitled to get one through your lender, but must still qualify in other ways.
If you can't get a loan modification under HAMP, you can try to talk to your lender about doing a custom loan modification, but I have no idea if they'll be willing or able to do anything. You're essentially asking them to cut off a huge hunk of principal and they might just say no. In that case, your best option would be to simply hand over the house to the lender, or do a deed-in-lieu of foreclosure if you can no longer afford the payments.
You're right - until you miss a payment your lender will likely be unwilling to do anything. So you'll be stuck with a destroyed credit history and credit score no matter what.
While it shouldn’t be that way, and lenders should be willing to modify loans that are not delinquent but might become delinquent in the future, lenders are busy working on loans that are delinquent and may not see a need to work with a borrower that is current on his or her loan.
When it comes to HAMP modifications, the success rate has been rather dismal. From what I have heard, only about 5 percent of all temporary loan applications have gone on to become permanent and only about 10 percent of all applications have been approved as trial loan modifications. With those numbers, it may not make sense to pay someone to help you with the loan modification.
The paperwork involved for a loan modification is similar to the paperwork you would deliver to a lender if you were refinancing your loan. You would, however, also need to present a hardship letter outlining why you believe the lender should give you the loan modification based on your circumstances.
Most trial loan modifications reduce the amount of interest that the borrower is paying, thus lowering the interest rate. Generally, principal reductions are not being done, but lenders will do forbearance agreements, where you simply don’t make payments for a period of time.
If you can't get a loan modification under HAMP, you can try to talk to your lender about doing a custom loan modification, but I have no idea if they'll be willing or able to do anything. You're essentially asking them to cut off a huge hunk of principal and they might just say no. In that case, your best option would be to simply hand over the house to the lender, or do a deed-in-lieu of foreclosure if you can no longer afford the payments.
You're right - until you miss a payment your lender will likely be unwilling to do anything. So you'll be stuck with a destroyed credit history and credit score no matter what.
While it shouldn’t be that way, and lenders should be willing to modify loans that are not delinquent but might become delinquent in the future, lenders are busy working on loans that are delinquent and may not see a need to work with a borrower that is current on his or her loan.
When it comes to HAMP modifications, the success rate has been rather dismal. From what I have heard, only about 5 percent of all temporary loan applications have gone on to become permanent and only about 10 percent of all applications have been approved as trial loan modifications. With those numbers, it may not make sense to pay someone to help you with the loan modification.
The paperwork involved for a loan modification is similar to the paperwork you would deliver to a lender if you were refinancing your loan. You would, however, also need to present a hardship letter outlining why you believe the lender should give you the loan modification based on your circumstances.
Most trial loan modifications reduce the amount of interest that the borrower is paying, thus lowering the interest rate. Generally, principal reductions are not being done, but lenders will do forbearance agreements, where you simply don’t make payments for a period of time.
HOAs and Real Estate Attorneys
The point of mediation frequently is to avoid using attorneys and reduce costs. Even if you want an attorney present, some mediation rules may prevent you from having one with you to present your case.
You need to find out what the rules for the mediation are and what restrictions there are in using an attorney. If you find out that you can’t have a New York real estate attorney represent you, you might still want to talk to one to determine how you should proceed.
Make an appointment with the New York Real Estate Attorney attorney, bring your documents and listen to what he or she has to say about your situation. You should be able to use your time with the attorney to develop a strategy for the mediation and understand your rights and options.
If you don't know a good New York real estate attorney, you should contact your local bar association and ask for the head of the real estate committee. The person who chairs that committee will be a good real estate attorney and, more importantly, should be able to guide you to the best person for the situation.
If you decide not to use a real estate attorney, you should learn as much as you can about your issue. Determine where exactly the fence is located and read the documents that govern your homeowner’s association to determine what rules those rules. Once you’ve done your homework, you should be in a better place going into the mediation.
You need to find out what the rules for the mediation are and what restrictions there are in using an attorney. If you find out that you can’t have a New York real estate attorney represent you, you might still want to talk to one to determine how you should proceed.
Make an appointment with the New York Real Estate Attorney attorney, bring your documents and listen to what he or she has to say about your situation. You should be able to use your time with the attorney to develop a strategy for the mediation and understand your rights and options.
If you don't know a good New York real estate attorney, you should contact your local bar association and ask for the head of the real estate committee. The person who chairs that committee will be a good real estate attorney and, more importantly, should be able to guide you to the best person for the situation.
If you decide not to use a real estate attorney, you should learn as much as you can about your issue. Determine where exactly the fence is located and read the documents that govern your homeowner’s association to determine what rules those rules. Once you’ve done your homework, you should be in a better place going into the mediation.
When to Use a Real Estate Attorney
Who needs a real estate attorney when you have a real estate agent working for you, right? Wrong! agents can be very helpful in showing you where to find the perfect home or selling the one you no longer need, but they are not attorneys.
Any time someone signs their name to a legally binding document, they should have an attorney look it over first. Once you sign your name on the dotted line of a contract, you are legally bound to it. Protect yourself by having a legal expert take a look at it first.
If you are buying a house, the New York real estate attorney will be able to do the following:
* They will advise you on the title documents and the best way to hold title of the property.
* They will make certain that you fully understand the sales contract and what it entails.
* They can look over mortgage terms, insurance liability and taxes. If a few more people had used real estate attorneys before they ended up with damaging hybrid mortgage arrangements, perhaps our country wouldn't be experiencing the current high rates of foreclosure.
* They will make sure that there are no problems with the title insurance
* They may attend the closing to scrutinize all paperwork before you sign it.
* If you are having a home built rather than purchasing an existing home, there are even more details that require an attorney's eye for details. The contract for a home being built is quite complex and includes deadlines, building material stipulations, zoning laws, etc.
If you are selling a house, the attorney will be able to do the following:
* Make sure the sales contract covers all details to protect you.
* Arrange for title and insurance certificates, if necessary.
* Attend the closing to look over documents, if necessary.
New York Real estate attorneys are well versed in federal, state and local laws and how they pertain to the buying and selling of property. They are able to help with other property issues, as well. They can advise a homeowner who is facing foreclosure or is involved with a property line dispute with a neighbor.
A real estate agent is helpful, indeed. But realtors are making a commission from a home being sold so they have their own agenda. A real estate attorney's agenda is to provide his or her client with protection. Don't you want one on your side when you are signing off on some of the largest financial transactions of your lifetime?
Any time someone signs their name to a legally binding document, they should have an attorney look it over first. Once you sign your name on the dotted line of a contract, you are legally bound to it. Protect yourself by having a legal expert take a look at it first.
If you are buying a house, the New York real estate attorney will be able to do the following:
* They will advise you on the title documents and the best way to hold title of the property.
* They will make certain that you fully understand the sales contract and what it entails.
* They can look over mortgage terms, insurance liability and taxes. If a few more people had used real estate attorneys before they ended up with damaging hybrid mortgage arrangements, perhaps our country wouldn't be experiencing the current high rates of foreclosure.
* They will make sure that there are no problems with the title insurance
* They may attend the closing to scrutinize all paperwork before you sign it.
* If you are having a home built rather than purchasing an existing home, there are even more details that require an attorney's eye for details. The contract for a home being built is quite complex and includes deadlines, building material stipulations, zoning laws, etc.
If you are selling a house, the attorney will be able to do the following:
* Make sure the sales contract covers all details to protect you.
* Arrange for title and insurance certificates, if necessary.
* Attend the closing to look over documents, if necessary.
New York Real estate attorneys are well versed in federal, state and local laws and how they pertain to the buying and selling of property. They are able to help with other property issues, as well. They can advise a homeowner who is facing foreclosure or is involved with a property line dispute with a neighbor.
A real estate agent is helpful, indeed. But realtors are making a commission from a home being sold so they have their own agenda. A real estate attorney's agenda is to provide his or her client with protection. Don't you want one on your side when you are signing off on some of the largest financial transactions of your lifetime?
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