It's easy for most people to get lost when trying to understand the legalities attached to mortgages. Fortunately, you can turn to a mortgage attorney for guidance. You may not be sure, though, what you can expect from a mortgage lawyer. One can help you with the following four mortgage-related legal concerns.
Checking the Terms of a Mortgage
It may seem obvious that a mortgage attorney can study the terms of a loan and identify potential problems. However, it's also a very important task. It's a good idea to know, for example, what the circumstances would be that would allow a bank to foreclose on a property. If you're not wild about the terms, you may be able to negotiate them with the support of a lawyer. Also, an attorney can tell you when the terms are too onerous so you can know when to walk away.
Unfortunately, financial fraud is becoming an increasingly common problem. The mortgage market is no exception, and it can be challenging to sort legitimate lenders from fraudulent ones. That's especially the case with many new companies coming into the world of home financing with slick apps, streamlined approval times, and appealing sales pitches. If you think an offer might be too good to be true, you can ask a mortgage lawyer to check it out first.
Even if you don't think fraud is likely, it's still wise to perform due diligence. A mortgage lawyer will follow a checklist to make sure everything is okay.
Restructuring a Mortgage
There are many scenarios where homeowners can benefit from restructuring their loans. If you're at the brink of default, for example, restructuring the mortgage may buy you time and help you keep the house. It takes two to make restructuring work, though, so you'll need to get the bank that holds the mortgage on board. Presenting them with a detailed and feasible proposal may make a difference, though. A mortgage attorney can help you prepare the proposal.
If a lender insists that you're in breach of the terms of a loan, it can be challenging to defend your position. Mortgages often include terms requiring the property owner to maintain the location to certain levels. If the borrower significantly fails in this regard, it could endanger the collateral that the property represents. On the flip side, it can be hard to legally prove that you're in compliance. A mortgage attorney can help you dispute such claims.