Taxation & Estate Planning

Today's post is written by my friend and colleague Stephen Silveri. 

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With mortgage rates currently at historic lows, you or someone you know may be refinancing. If this is the case, I want to be sure that you are aware of the importance of hiring your own attorney to handle the closing. Hiring your own attorney, instead of using your lender?s attorney, does not cost you anything extra.

Typically, when a borrower refinances, the borrower contacts his or her lender and applies for a new loan at better terms. The lender then places a ?title order? with the lender?s attorney who then conducts a title exam on the property to identify all ownership interests, current mortgages, and other liens, and formally meets with the borrower to sign the necessary paperwork.

The lender?s attorney, however, solely represents the lender and is not under any obligation to protect the borrower. A good lender will allow the borrower to hire his or her own attorney to take over the above responsibilities at no additional cost. In this situation, the attorney represents both parties and must ensure that the borrower?s interests are protected. When a lender will not allow the borrower to protect himself or herself in this manner, it might be time to find another lender.

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Stephen Silveri is authorized to close for virtually every national lender and many mortgage brokers and smaller banks in Massachusetts, New Hampshire and Rhode Island. If you have already begun the refinance process, it is not too late to hire him to represent you. It is a common situation where a borrower hires his or her own attorney after the title order has been placed with the lender?s attorney. In this situation, the borrower?s attorney merely purchases the title exam from the lender?s attorney so they do not incur any losses.

Stephen's real estate and estate planning practice is located in Dedham, and he can be reached at 781-461-1192, or at http://www.silverilaw.com/.