We are pleased to inform you that our office has been selected by your lender relating to your request for a mortgage loan on the above-referenced matter. As of this date, we have commenced an examination of the title, ordered a Certificate of Municipal Liens from the Collector of Taxes and, if required, ordered a mortgage plot plan for the Bank’s records, if required.
Please note that our role in your refinance transaction is to represent the interests of the lender. When you initially purchased your home, the closing attorney conducted a multi-year search of the property, depending upon state statute. Pursuant to Massachusetts General Laws Chapter 93, Section 70 the initial conveyance attorney representing the lender was required to present you with a clear title to your property.
More specifically, the closing attorney’s job was to make sure that all mortgage liens, tax liens, executions, and any other types liens from prior owners which may have been against the title to the property were paid at closing. Thus from the moment your deed is recorded to you, the closing attorney guaranteed to you by statute, that you have good record title to your property.
When this office conducts a refinance of your property we represent the interests of the lender. We are however, only required to examine the title to the property from your ownership forward. We presume that the prior closing attorney provided you with good record title to the property. It is our job in this transaction to make sure that all current taxes are paid and that all present lien holders on your property are identified and paid off or subordinated at your refinance.
If there are any problems with your title from the point of your ownership forward, we identify such as a missing assignment or a missing discharge from a lien that was paid off at another refinance. We will point these problems out to you, but we will not attempt to fix them. Our office will close your refinance so long as we are satisfied that the outstanding liens have been paid off. If we do find any problems will suggest to you the agent whom you may contact to have these problems resolved. Usually, it is the closing attorney that completed the prior refinance who may be contacted.
As part of your refinance transaction we will also ask you for the pay-off information for your current lender so that we can order a payoff statement. If the record holder does not match your pay-off statement, we then notify you that an assignment of mortgage may be missing. However, as long as the loan is determined to be the same loan as the one on record, we will pay it off. We will also make sure that we obtain a discharge of the mortgage or other liens which we are paying off, but we make no assurances that these discharges will come from the record holder of the lien if you do not supply us with a pay-off from the proper record holder.
Please be aware that any outstanding issues we point out to you at your closing will have to be resolved at some point. Some attorneys will not refinance a loan unless title to the property is perfect, even though you may have proof liens were paid off. More importantly, most attorneys want your title to be perfect upon the sale of your home. So if we point out any problems to you, we suggest that you work to resolve them. We will be happy to point you in the right direction or supply you with any information which you may need to do so.
When the above items are completed and reviewed by our staff, we will notify you to arrange a convenient time to close the loan. We will also advise you of any funds you may need to complete the transaction. You must bring CERTIFIED or BANK CASHIER’S CHECKS made payable to yourself for these funds. In some cases, personal checks of $300.00 or less may be acceptable.
Please review the Bank’s commitment letter carefully. If special conditions are required, they must be met PRIOR to closing to the satisfaction of your lender’s mortgage department. We are looking forward to working with you and if you have any questions or comments relative to the loan transaction, please do not hesitate to contact us.
Very truly yours,
/s/OneBoston Title & Closing Services, P.C.