Profile picture for IloveNewYork

My mortgage broker insists that I use their lawyer and does not want me to get my own, should I be a

I want to use my own real estate lawyer and he tells me that it is not necessary and that they have a lawyer that will represent me. Should I be concerned about this???
  • March 26 2010 - Brooklyn
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Answers (25)

Something does not sound right. You can use any attorney you wish too. Might be time to find another mortgage broker.
  • May 17 2010
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The term For-Profit-Fraud refers to real estate professionals INCLUDING attorney's colluding along with others to rip unsuspecting home owners:

http://tinyurl.com/OperationBD 

I always recommend my clients hire an independent  Licensed Home Inspector to warrant the purchase of a home and provide and cost repair  estimations if needed. That will run between $350 -$450 in this area. A Lender might have attorneys on retainer and have an agreed upon price for every representation. Maybe they charge the consumer $800.00 at the settlement table to be paid to the BANKS attorney. Most Real Estate attorneys will charge less than that to represent the home buyer at the closing table. I have seen fees in the $500 range.



I recommend these two ( inspection & attorney)  professionals coming on board to offer you piece of mind. Lot's of folks thought that they were saving  $850 in the short run, but when there is a problem in the long run that amount is peanuts compared the thousands lost in equity and attorneys fees when the buyer became distressed a few short years later. Not to mention pain and suffering.  
  • May 16 2010
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You have the right to use the Attorney of your choice, however, unless you smell a scam, you probably will be better with the one that the broker recommends, since they likely have first-hand experience with the brokers properties and won't have to waste a lot of time "getting up to speed", thereby wasting your money and valuable time.
  • May 16 2010
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Profile picture for real estate mike
typical, the fact is you are the client you are in control. The mortgage broker should only be concerned with what you need to meet the loan programs guidelines(ex. 5% down, tax return, etc.) If you want a lawyer and want to pick one then feel free to do so. good luck on your transaction.
  • May 15 2010
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If you would like to choose your own attorney, it's your right to--use whoever you wish.
  • May 15 2010
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Dear, Ilovenewyork this is a clear sign of danger. Let's brake this down a little. First off if this a broker then the broker is pitching mortgage programs of several different lenders. The broker must write the loan according to the lenders guidelines for that particular product. All lenders have one or more attorney's  on retainer to represent the lenders interests at the closing table. The broker can not chose the attorney nor should he represent that you are a client of that attorney because you aren't. In this scenario since N.Y.S is an attorney state and you have the right to be represented it is highly recommended that you pay for an attorney to represent you at the closing table. Even in this case the attorney should come highly recommended by a close friend or someone you trust. This is important because you need this attorney to make sure that you sign for what you asked for. For example you think that you are signing a fixed rate 30 year term and in 3 years from now your rate adjusts up 3 points and then balloons in another 12 years. It has happened. Many sarcastic loan officers I have interviewed after the recent collapse remarked that these consumers should have known what they were signing. I have seen tears in clients eyes when they came to me to apply for modifications but didn't qualify. If the mortgage company you are dealing with is a direct lender they chose the attorney at the closing table, but the underlying product may be a "Bank Of America" product renamed as a wholesale line in the direct lenders name BUT the underwriting guideline are BOA's. Once again you are not the client of that attorney. He/she is presenting the direct lender. Bring you own attorney. There are a lot of slick people out there. Be prepared.

I hope that this helps. Reach out if I can be of further assistance. 
  • May 15 2010
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Profile picture for natewolf
You can use whomever you want.

It's not uncommon to have a recommendation to an attorney the lender knows, since they will be escrowing the money with the attorney and must approve the attorney you choose. You can always use your own, and the mortgage company can use one, and the sellers can use theirs as well... but it's not really necessary in most cases.

The broker wants to make sure the closing goes smoothly-- and it helps to know the professionals you're dealing with are going to make certain your closing is on time and correct.
  • May 14 2010
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Profile picture for jphilip
That seems a little tricky to me. You ought to be able to use your own lawyer, and the only input a loan officer or agent should offer is that the attorney be local and specialize in real estate. 
  • May 14 2010
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Profile picture for lucho975
you are better of finding your own attorney therefore avoiding conflicts of interest
  • April 27 2010
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Guys, I get it, however the question remains, this person wants to use thier own lawyer, why can't he/she?
  • April 02 2010
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Phyllis, it does not matter who pays for the Atty, the Atty is representing the lender.

  • April 01 2010
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Is it not possible, that the Lender is trying to be helpful by recommending an attorney who is proficient? Is it not possible, that the Lender is also recommending an Attorney who is reasonably priced? If the OP thinks the Lender is trying to hoodoo them, they need a new Lender, not their own Attorney.

The insistence, that there is something nefarious going on here, is absurd.
  • April 01 2010
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Yeah... "not a divorce or suing someone just talke the cheapest route" Escuse me? what is this KMART shopping advice????

This is just the most expensive investment you will make in a lifetime!

If you pay....you pick the product. You don't have to pay for the lender's Lawyer...

I find it interesting how the lenders on this thread are back slapping each other and advising you to take THIER advice and are telling you to do what your Lender tells you to do.........

  • April 01 2010
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See Andrew Adams answer,,...he said it best. Just go the cheapest route with the Attorney situation. You're not settling a divorce or suing someone,...your just signing standard loan docs. The fact that you have to have 3 Attorneys in NY is BS anyway,....or at least 2 if Buyer Atty is working for Bank as well in which case you're being charged for the work of almost 3 people anyway.
  • April 01 2010
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It is interesting that no Lender types have pointed out that there are valid reasons for preferring to use an Attorney with a known performance record. The wrong Attorney can boggle down your deal in ways that will make you mad at the Broker. They try to avoid these situations. There may be a motive that is not ulterior.
  • April 01 2010
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workabee said it best



  • March 31 2010
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What a lame high school jock move. Tell the broker to stuff it. It's your money, you decide. I would pick another lawyer just to spite him. 
  • March 31 2010
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The facts of the matter are, that the lawyer is there to handle the funds. There is little, or no, lawyering to do at a loan closing. If it weren't for the necessity of closely guarding the cash, no one would need a lawyer at their loan closing.If they can read, that is. I agree with Joe, this should be part of the estate attorney's duties, that you/estate are already paying for.
  • March 31 2010
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I have a quote: "If you Have to pay for it..You get to chose it"

If you lender like the RE lawyer so much, then let him/her pay the fees

This is such BS I just had a past client tell me that they are doing a re-fi and the lender wants him to use thier favorite Title Office.

No way, If the lender wants to pick the RE lawyer...Title Ofice...ect....then let the lender pay the fees.
  • March 30 2010
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If I am reading your post correctly, I would think the attorney in charge of the estate should be able to represent your needs with regards to the purchase of the house and then you would have an attorney for the bank covering the mortgage.  If you want a third party to review the contract that would be up to you but not necessary.  Boils down to how comfortable you are with the way this estate is being handled.
  • March 26 2010
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Dear IloveNewYork:

Having your own lawyer may not be necessary but that does not mean that you can't get one if you want someone to protect your best interests. You can get all the paperwork and have your lawyer review it for a nominal fee. If you want your lawyer to also be at the closing it will cost a little more. Most attorneys value their time at $250.00 to $300.00 per hour so be prepared to pay $250.00 to $750.00 for their services.

If you do hire an attorney and then you have a problem, as least you may be able to sue your attorney for malpractice and get back damages. Without an attorney, if something goes wrong, you cannot sue yourself!

Good luck!

Sincerely,
Mitchell Feldman
Associate Broker/Director of Sales
Madison Estates & Properties, Inc.
  • March 26 2010
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My question is what do you expect your attorney to do for you?

The truth is the Loan docs are non negotiable so if you don't like the way the note or the mortgage is worded it doesn't matter who your attorney is the bank won't change it.  You need to make sute the note has the correct rate and terms (fixed ARM) and that the fees on the Hud-1 are what you expected.  The new disclosure laws make that easier because if they aren't close the deal can't close.  If either of those are out of whack...walk.
  • March 26 2010
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Profile picture for IloveNewYork
Hi, this is going to be a purchase,but it is a complicated situation,because it is an estate and i am buying another sibling out. He told me that we have to do this as a purchase because of title requirements for a refinance? He said that he has a lawyers firm that one partner will be my attorney and the other will represent him?He said that I dont need to get a real estate attorney on my own who is going to charge me and not really do anything???
  • March 26 2010
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If it is a purchase you should be concerned.  Besides I do not know of an attorney in the NYC area that will represent both the buyer and the bank on a purchase.  If it is a refi, like Norm said it is not that big of a deal.  However the bank should be at least open to using the attorney of your choice unless they are on some exclusionary list.
  • March 26 2010
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Their lawyer represents them. If this is a refi it's not really a big deal as the wording in the DOT, etc isn't negotiable anyhow. If this is a purchase you should have your own lawyer.
  • March 26 2010
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