Purchasing any kind of real estate can often be a tricky situation with all of the paperwork, legalese, and statutes to contend with. This is why hiring an attorney before engaging in any sort of transaction involving real estate is strongly recommended. Here are some of the most frequently asked questions from potential buyers concerning Real Estate Financing Nassau County NY.
Q. What, exactly, is real estate financing?
A. Purchasing a real estate property, no matter if it is residential or commercial, is almost always done through a method of payment called financing. This allows the property to be purchased without paying the entire amount upfront. The institution who lends the money will hold onto certain tangible or intangible items for collateral until the loan and interest are repaid in full. These items may include such things as bank accounts, building fixtures, or even equipment.
Q. What is a cognovit note?
A. These types of notes are used in commercial real estate transactions involving Real Estate Financing Nassau County NY. Many states have outlawed their use as they have often been linked to shady and predatory lenders. Essentially, the cognovit note says that the debtor is giving up certain rights they would otherwise be entitled to if they had not signed the cognovit note. While not illegal per se, the Supreme Court decided that they are not valid in any form in regards to consumer real estate transactions. Click here for more details.
Q. What is the difference between a mortgage and a deed of trust?
A. Simply put, a mortgage leaves the ownership of the real estate with the debtor while the loan is being repaid to the creditor. A deed of trust places the legal ownership of the real estate in the hands of a third party until the debtor of Real Estate Financing Nassau County NY satisfies the loan obligation to the creditor.
A law firm that has much experience in terms of real estate transactions, such as The Law Offices of Peter Morra, should be sought out in these cases. An aggressive and hard-working lawyer will ensure that all rights are kept intact and that the contracts are fair and balanced.