The Basics on Mortgage Banking Law
This type of law revolves around the whole process of taking up a mortgage up to the date of repayment. It sets outs the rules and regulations to be followed by both the mortgagor and the mortgagee. Everyone who decides to take up a mortgage to finance their buying of a home or any other property should make an effort to learn at least the basics of this section of the law.
The following is a few of the things that every borrower must be aware of:
The first thing is always how does mortgage banking work; Mortgage banking works when an individual or a company, approaches a lending institution usually a bank so as to acquire a loan that will be directed into the buying of property. Once the lending institution agrees to give the loan to the borrower, a mortgagee (lender) and mortgagor (borrower) relationship is formed. It is important to note that property does not refer only to homes. An auto loan also falls into this category.
Usually during the agreement/ contract that is signed between the two parties, the repayment plans are agreed upon. Usually they state the amount of money to be paid on each payment and how often the payments will be made. The contract will also set out the kinds of steps that the lender will take should the borrower fail to meet up to his part of the contract. Usually most lenders agree to loan modifications incase at some point during the repayment of the mortgage the mortgagor is unable to fulfill his repayment obligations.
Most people forget that they have to pay taxes on their property. This usually leads to an accumulation of taxes. If you fail to pay taxes on your property, the government has a right to establish a tax lien on your property until you finally pay all your taxes.
If at any point the mortgagor fails to make payments on his loan as expected, and he has outstanding collections the mortgagee is entitled to acquire the property which he can sell off to acquire the remaining part of his money. This acquisition of the property by the lender is what is referred to as foreclosure. If you are lining in the property, the lender has a legal right to evict you from the house. However for evictions to be legal he must first acquire the proper legal documents from a court of law.
Sometimes the lender can choose to sell your loan to a collection agent. This means that instead of paying the bank the outstanding loan you have to pay the collection agent. Collection agents are known to be quite persuasive into forcing people into accepting their deals. If you find yourself dealing with a collection agency it would be advisable to seek legal and financial advice before getting into any agreement with him.
Mortgage banking lawyers are best suitable for this kind of situation. One good firm that you can contact is the Rosicki Rosicki and Associates. They are knowledgeable on NY Mortgage Banking Law and can be able to advice you on what steps you should take.