Real Estate Loan Closing and Financing Oversight
We review real estate mortgage and loan documents for borrowers and prepare them for lenders. We help to make sure the documents are fair and properly reflect the agreed terms. We can assist with or conduct the loan closing. These services are available in both the commercial and residential setting.
• Acted as borrower’s counsel on the $20 million construction loan for the initial phase of a grocery-anchored shopping center in Columbus, Ohio.
• Represented the lender on a $2 million loan to a public agency in Fairfield County, Ohio
• Represented the borrower on a $14 million shopping center refinancing in Columbus, Ohio.
• Helped a couple refinancing their home to determine that the note and mortgage for their new loan reflected the loan terms they had been promised and made sure they were not being charged excessive origination fees.
• Reviewed the loan terms offered a different couple and advised them they were being offered a predatory loan and should not close on it.
Truth in Lending – federal law applying to residential mortgages. Lenders must make certain disclosures at closing to help borrower determine if the loan is fairly priced. In a refinancing, Borrower has a three day cooling off period after signing.
Debt to Equity Ratio – the principal amount of a loan, compared to the property value. The ratio is 75% if the property value is $100,000 and the loan amount is $75,000. Avoid higher debt to equity ratios so that the property will not go “upside down” in a recession.
Predatory Lending – loans where the terms create a high risk of default and/or where the fees to lenders and loan brokers are excessive. To avoid, have a lawyer look the loan over before you close.