The Fryer Law Firm

REFINANCING
  • The new lender will usually set up the closing and choose the closing attorney, unless the borrowers indicate a preference to use their original closing attorney or another firm.
  • Because there is no sales contract with a closing deadline, the lender has more control over the closing date, based on when the new loan is approved and locked in.
  • Borrowers need to stay updated on the projected closing date, so that they can keep their current mortgage payments paid.
  • Fryer Law will work with the refinance lender to coordinate the request for the payoffs; either party can order them for the closing.
  • Other payoffs, such as open or delinquent property taxes, recorded liens, judgments, HOA liens, IRS or Georgia Revenue liens, and divorce settlements are obtained by Fryer Law Firm and must be paid to insure that the new mortgage has priority over these other debts.
  • If the current year’s property taxes and/or the hazard insurance renewals are due at the time of the refinance, these bills must be collected at closing, even if the borrowers have been escrowing with their previous lender. Once the previous loan is paid off, the borrowers will get a refund of the full balance in their previous escrow account.
  • All owners on the title must attend closing, even if added to the title after the previous closing and even if not on either loan as a borrower.
  • Powers of attorney and Remote/Zoom Closings when a party can not attend closing in person
      • Fryer Law Firm can prepare and provide a power of attorney (POA) to be executed by a party to the transaction that can not attend closing.
          • If the party is a borrower on the mortgage, the lender must review and approve the use of a POA prior to closing.
              • Once approved by the lender, the POA can be emailed to the signing party to print out, sign with a witness and notary, and return the original fully executed POA to our office prior to closing. The person needing a POA can also come to the Fryer office prior to closing and sign here with our witness/notary provided.
          • Current Georgia Law (2020-2021) allows remote notarizations via Zoom if the parties are signing in the state of Georgia. This law is in effect to provide social distancing due to COVID-19 restrictions and health considerations. Parties who attend closings in person may also request signing in their cars, outside on the Fryer front porch, or in separate sanitized offices in our building. All Fryer employees and parties in the building will wear masks and observe social distancing.
              • Borrower document signatures via Zoom must also be approved by the lender.
              • Original documents must be delivered to the signing parties by courier or Federal Express, and Fryer attorneys must witness all notarized documents via Zoom. The originals must then be returned to Fryer Law for original notary/witness signatures to be affixed before the closing can be finalized and disbursed.
  • Work with your lender in providing requested documentation on a timely basis to expedite your closing date.
  • Once your closing date is confirmed, discontinue any automatic payments on your existing mortgage, once the current month’s payment has been made.
  • If you are also paying off a home equity loan, discontinue any draws, checks, or charges on this account, so that we can get an accurate payoff to close the account.
  • Once the loan disburses (usually 4-5 days after closing), Fryer Law Firm will send the payoff(s) by wire or Federal Express to close the previous mortgages.
  • If the borrowers are getting cash back, they can choose to get their funds in person, by mail, or by wire transfer from Fryer.
  • Fryer will also send out any other required payoffs for taxes, liens, insurance, or other items required to clear title or as required by the new loan.

 

  • If the borrowers are refinancing their principal residence, federal law requires that they have 3 business days between the day of signing their refinance paperwork and finalizing the transaction. The 3 days begin on the day after the signing and do not include Sunday or any banking holiday.
  • Until midnight of the 3rd business day after signing, the borrowers have the legal right to rescind the transaction in its entirety.
      • This right to rescind does not apply to purchases or investment/rental property refinances.
      • If cancelled, the borrowers resume their payments with their existing lenders. No fees are due to Fryer Law.
  • Borrowers do not receive a new deed to the property, unless a borrower was added or removed in connection with the refinance (for instance with a new spouse or in a divorce situation).
  • Unless there has been a new deed to change the title, borrowers do not need to reapply for the Homestead Exemption.
  • Borrowers should retain their original Owner’s Title Insurance from their purchase closing, because no new Owner’s Title Insurance is charged or issued in a refinance (just a new Lender’s Title Policy).
  • If not already done, borrowers should discontinue any automatic payments on their previous mortgage, even though it has been paid off.
  • Borrowers need to confirm their method of payment (paperless or check) and beginning due date for the new mortgage payment. Many loans are transferred to a different lender before the first payment date.