A mortgage lender is a group or person that provides money to a borrower during the closing phase of a home sale. In exchange for the mortgage loan, the borrower gives their promise to repay, which can often be backed by a lien on the property. How the money will be repaid will depend on the specific terms listed in the mortgage contract.
Mortgage lenders are usually financial institutions or companies such as a bank or a mortgage company. A mortgage lender is different from a mortgage broker. As mentioned, the lender is the party that actually provides the loan money. A mortgage broker is a party that offers the loan products of many different mortgage lenders. Lenders and brokers often work together along with other real estate agents.
Mortgage lending is often a necessary part of a home sales transaction, as the average home buyer can’t really afford to make a full payment all at once. Mortgage borrowers should therefore be aware of some of the various legal issues associate with mortgage lender agreements.
Some issues to be wary of when dealing with a mortgage lender can include:
Mortgage lending agreements should be carefully reviewed before signing them. During negotiations, it is important that the buyer raise any questions or concerns regarding the loan and the property involved.
Disputes with a mortgage lender may sometimes require legal action to be resolved. If you feel that you may have a dispute with a mortgage lender or lenders, you should try to take the following steps:
If you’ve suffered economic losses from the dispute, you may be entitled to an award for damages. Another possible remedy may be that the court will allow you and the lender to rewrite the lending agreement to better reflect your needs regarding the arrangement.
The mortgage lending process can often be quite complicated, even for persons with a good credit background. You may need to hire an experienced real estate lawyer for assistance with the process. Your attorney can help review documents and assist you during negotiations. Also, in the event that you need to file a lawsuit, a competent attorney in your area can provide you with the representation needed to succeed on your claim.
Last Modified: 07-08-2018 09:31 PM PDTLaw Library Disclaimer
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