There is a judgment against someone with the same name as me. Why do I have to pay to file an affidavit?

It’s an unfortunate situation but in New York State any judgment, lien or bankruptcy that shows up during a title search in a name similar to yours is listed as affecting your title. If none of the judgments are yours, it is easy to clear the title by filing a judgment affidavit. Unfortunately, the clerk charges approximately $16.00 to file it. The only other options would be to pay off the lien (likely to be more than $16.00) or find the person who is actually responsible for the lien and get them to pay it (outside the realm of reality).

I paid off my old mortgage but why is it considered an "open" mortgage on my title?

Think of a mortgage as a light. When you first sign the promissory note and mortgage (along with the 25 other documents in the bank package) the mortgage is recorded turning the light "on." Say you refinance three years later and pay off that mortgage. After receiving the payoff, your old lender should have issued a discharge of mortgage. If that discharge does not get recorded in the clerk’s office then the light remains "on." The discharge is the best way to turn off the light.

Why is the payoff of my mortgage more than what my last monthly statement said?

If you get a monthly statement from your current lender or if you called to find out your mortgage balance, the figure you were given is most likely the principal balance. What isn’t figured into that amount is the daily interest. Interest gets paid in arrears. When you make your May 1st payment it includes interest for the entire month of April. So, if you are paying off your mortgage on June 15th (and you did not make your June 1st payment) then your payoff is figured by adding your principal balance plus 45 days of interest (all of May and 15 days of June).

What is the difference between a title search, title abstract and title insurance?

The word "abstract" and "search" are often used interchangeably. Technically, an abstract is the written list of transactions that affect or have affected your property. It’s usually a thick stack of legal size papers. The search is the actual work of reviewing the records in the clerk’s office. You need a search to get an abstract. But, in some circumstances, you do not need an abstract to get a search done. You do need a search in order to purchase title insurance.

When you refinance, Title Express orders the title search and review the results. If you have an abstract, the search is updated from the last date in the abstract. Otherwise, the required search is ordered.

Once the search is finished, it is examined and the title insurance report is written. The title insurance protects the owner or lender from possible defects in the title of the property.

When can I close (and why can’t you tell me now)?

There are many factors that vary the amount of time it takes to get from application to the closing table. While Banas Mortgage and Title Express work their hardest to make the timeframe as small as possible, problems sometime arise and they can delay the closing date. The best way to make sure closing happens as soon as possible is to keep in close contact with your Banas Mortgage processor and Title Express representative.

Do I have to go to the closing?

If you are buying a home or refinancing your mortgage -- Yes. (Typically, sellers do not have to attend the closing on the sale of their home.) The only way you can get out of attending the closing and signing your name 65 times is if you appoint someone to be your attorney-in-fact to sign on your behalf. If you do that, the lender usually has to approve the power of attorney (not the person, but the document appointing the person).

Can I bring a personal check to closing?

In most cases, no. Check with your Title Express representative or your attorney. A certified or bank check is needed because the funds are guaranteed funds, and certified funds are usually required by the lender you are paying off.

How long does the closing take?

A typical loan closing (signing the bank documents) can take approximately an hour, more if you have a lot of questions. Most of the documents within the bank package are boilerplate documents. If you plan to read every document before you sign it, contact Title Express so we can obtain a copy of the documents for your review prior to closing.

Exactly how much money do I have to bring at closing (or how much money will I get back)?

This amount can be closely estimated prior to closing but the exact amount is not usually available until a day or two before the actual closing date. Final figures cannot be determined until a closing date is set.

Why do I have to bring money to closing if I am borrowing enough to cover my old mortgage plus closing costs?

Usually this happens when something is underestimated. Many times your mortgage payoff has been underestimated at application.

Why is the lender escrowing for homeowner’s insurance if I already paid for the next year in advance?

Many lenders require that a full year of homeowner’s insurance is paid up front at closing. They begin the escrow account with a couple of payments towards the following year’s bill. Then, each month, the lender collects 1/12th of the next year’s bill so that when the payment becomes due, there are enough funds in the account to make the payment.

Why does this whole process take so long?

There are a variety of factors that can affect the length of the entire loan process. It is important to keep in close touch with your Banas Mortgage and Title Express representatives so that everyone is well informed.

Banas Mortgage Co., Ltd.
27 North Long Street
Williamsville, New York 14221
Phone: (716)633-5888 Fax: (716)633-6016
E-mail: info@banasmortgage.com