Independent legal representation of a good lawyer is essential.
If you don’t have a lawyer, we can help you find one … we ask those who have used the site to rate their lawyers. And although we do not publish this information, we can provide you with the names of lawyers who have achieved high ratings on the site.
To ensure that both parties are serious in their intent, we recommend that a commitment letter be signed indicating that once the agreement is completed both parties will sign. The borrower is responsible for paying legal fees for both themselves and the lender.
The lender’s lawyer can facilitate those activities necessary to validate the collateral for the loan. This will include a search, to insure that the borrower has valid title to the property, and also to identify any existing mortgages, loans, liens or easements on the property. The property being used for collateral needs to be appraised to confirm its existence and value. The lender’s lawyer can also assist in obtaining the amortization schedule indicating how payments are to be made. Also, what the process will be in the event that payments are not made. It is good to understand this up front.
Either lawyer can prepare the loan agreement as it will be reviewed by the other party’s lawyer.
In summary, what makes for a successful transaction, is independent legal representation by good lawyers. This is what makes BLM work!