If you are refinancing or borrowing to purchase a home, loan cost is not the only issue to consider.

There has been a lot of publicity lately regarding the changes to the Real Estate Settlements Procedure Act which are designed to make it easier for borrowers to “shop” among lenders in order to obtain the very lowest cost loans.  I would like to point out that cost should not be your only concern.  Clients who have come to me after their loan closing with problems all seem to have their loans with huge national banks.  These banks, perhaps understandably given the volume they face, have problems tracking payments, loan assignments, and other matters.   One client, who had never been late or missed a mortgage payment, was accused by his national lender of missing one month’s payment.  They told him that if he did not pay it immediately or provide proof that it had been paid, they would begin foreclosure proceedings.  He had to do all of the legwork to prove that they received and cashed the payment, and he still had to wait “up to 45 days” for the bank to agree.  He was told that there were other borrowers in the same position regarding the same month, and that the problem may have arisen from the bank’s purchase of a loan portfolio, but nonetheless, the burden was on him to prove that the lender received the payment.  Similar problems arise when there is a need to prove that a mortgage with the national lender has been paid in full.  Again, it is usually up to the borrower to prove to the lender that he made all of the payments, even if it has been years since his final payment.

I have also seen that national banks (by the way, I do not include HSBC or M&T in this category for the purposes of this entry) have not treated our clients, who are experiencing financial difficulties, in an understanding or humane manner.  Most of our clients are content with the way they have been treated by their small, local lender.  It has been my experience that local lenders are very understanding and willing to help resolve foreclosure and payment issues.   I have not spoken with any big bank client who feels they have been well or fairly treated.

So, if you are refinancing or borrowing to purchase a home, give some additional consideration to your smaller local bank.

Tags: borrowing, loan, mortgage, real estate, refinancing

HoganWillig’s new building (and its interior office space) will be one of the first commercial LEED certified office buildings in Western New York. “LEED “stands for Leadership in Energy and Environmental Design. The design and construction of the building will be rated in seven different categories: Sustainable Sites, Water Efficiency, Energy and Atmosphere, Materials and Resources, Indoor Environmental Quality, Innovation in Design, and Regional Priority. These categories award points (and therefore encouragement) for doing things like Read on…

Tags: Leadership in Energy and Environmental Design, LEED

Every homeowner should be aware that the responsibility for keeping up your real property, whether it is your personal residence or a rental property, is not merely a personal preference to be exercised only when you desire. The condition and appearance of the property is also a matter of public interest and, if you fail to maintain said property to the satisfaction of the municipality in which the property is located, you could find yourself being called before a judge in Housing Court.

New York State law grants the courts Read on…

Tags: housing code, housing court, housing court summons, housing court violations

In New York State Grievance Day is the opportunity for owners of Real Property to challenge their property’s assessment for real property tax purposes.

Each municipality has its own Grievance day. Generally towns hold Grievance Day in the spring – in Erie County towns it tends to be Read on…

Tags: equalization rate, grievance day, property assessment, real estate tax, tax

You can find just about anything on the Internet, from a meatloaf recipe to a Yorkshire Terrier. The Internet can be a valuable tool or a source of entertainment, but it is a risky place to find a commercial lease form. “One Size Fits All” Lease forms may contain seemingly appropriate legalese like “subrogation” and “condition precedent,” but if you don’t know what those terms mean, you shouldn’t use them.

Generally, commercial leases are Read on…

Tags: acceleration clause, breach of lease, commercial lease, liability insurance, liquidated damages clause

The current economic chaos and uncertain future has negatively impacted many industries and people. Some businesses are filing for bankruptcy and others are seeking relief through bailout plans. The average person has probably suffered significant investment losses especially relative to their 401k or other retirement plan. Even worse, Read on…

Tags: homeowners, interest rate, loan, mortgage, mortgage crisis, refinance

Homeowner’s insurance provides coverage in event of damage to your property. Your homeowner’s insurance may cover damage from fire, smoke, windstorm, hail and/or snow. Everyone’s homeowner’s insurance covers different damage to their property and you should Read on…

Tags: date of loss, homeowners insurance, statute of limitations

I attended a meeting this morning where it was announced that there had been a significant rise in title insurance claims in New York State.  These claims are made against title insurance policies issued to either the homeowner (if he/she purchased this optional policy at the time they bought their home) or the bank lending the money for their purchase or refinance (such a policy is always required by the bank). Read on…

Tags: identity theft, insurance fraud, title insurance claims, title insurance fraud

Though the Buffalo area has not been hit as hard by the mortgage crisis as other parts of the country, there are still many local people who are affected. Whether in a foreclosure situation or in negotiating with a lender to accept something less than the full mortgage debt that is owed (a “short sale”), a homeowner may end up having a portion of his or her mortgage debt forgiven by his or her lender. In the past, Read on…

Tags: foreclosure, mortgage crisis, short sale

A client recently shared with me an unsolicited offer he had received in the mail. The company offered to obtain (for a sizeable fee) a certified copy of the client’s deed of ownership to his property from the local county clerk. The offer stated that it was a good idea to have a copy of this valuable document, which is the single best indication that you own your own home. I agree with that statement, which is why all lawyers Read on…

Tags: deed scam, real estate, record retrieval