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Hildy, Home Buyer in New York, NY

Saw this phrase on a couple of properties Must use Seller's Attorney. That doesn't seem right - would he be

Asked by Hildy, New York, NY Thu Jul 3, 2008

looking out for my best interest as Buyer? Thanks

Also, If I get a regular mortgage - but use the property as an investment property - would I get in trouble?
Thanks

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Using a seller's attorney (or closing company) to close the deal is often done when to property is bank owned. You should still have a Realtor (buyer's agent) or attorney looking out for your interests - developing your offer, drafting and reviewing paperwork, negotiating, keeping track of "next steps", etc. Regarding your second question, some mortgages are designed for owner-occupied properties. If you state that you plan to occupy the property, but do not actually intend to do so, you are probably committing fraud - not a good idea. I recommend you talk with your lender up front about products designed for investors, and shop around for the best one.
0 votes Thank Flag Link Fri Jul 4, 2008
Hildy,

There is always a “closing agent” aka “settlement agent” in a real estate transaction. This closing agent orders loan checks and payoffs, makes sure the lender criteria has been satisfied, receives and disburses funds, completes all forms required for the transfer of title, recording of deed and reporting to the IRS. Each state governs who can or cannot qualify to be a settlement agent. In some states, real estate brokers may act as the settlement agent. Title companies are often the closing agents, and the title companies have their staff attorneys review documents. In NJ, it is common for attorneys to be the actual closing agent who receives funds, disburses the funds, and prepares the documents.

I assume that what you have read is that the seller’s attorney will be the closing agent. This does not mean the seller’s attorney is representing you by reviewing the contract terms, negotiations or providing guidance to you. The function of closing is one of administration and compliance. You can, and would be well advised to hire your own counsel and/or Realtor to represent you and guide you through the transaction. The Realtor or attorney who represents you will look out for your interests, provide advice, and explain each step.

Best of luck to you in your transaction.

Deborah

PS.... Both prior answers gave good advice about the mortgage! I agree.
0 votes Thank Flag Link Fri Jul 4, 2008
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
As suggested, get your own attorney. With respect to a "regular" mortgage, if there is a requirement that the property be owner occupied and you proceed knowing that it will not be occupied, that's mortgage fraud- could create big trouble for you down the road.
Web Reference: http://optionsrealty.com
0 votes Thank Flag Link Fri Jul 4, 2008
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