I have previously written an article on this topic, http://www.socyberty.com/Law/South-Carolina-Has-It-Right-Attorneys-Need-To-Do-Real-Estate.124832.  I limit this article to the bill for re-finances.  These are closings where a person negotiates a better mortgage typically with either cash back, a lower interest rate, or a fixed rate for the entire loan.  The case of South Carolina vs. Buyer’s Service, (292 SC 426, 357 SE 2d 15, 17) established the four parts of a closing that the attorney must supervise.  They are:

1. Do the title search at the deeds office
2. Review and/or prepare the loan documents
3. Explain the documents to the borrower and obtain signatures and
4. Record the new mortgage and satisfy the old mortgage

It is important for the attorney to be involved in all four stages.  Let’s review each step and why it is important for the lender and the borrower to have the attorney involved.

1. Title Search-  The lender needs to know that borrower is the owner of the property and that there are no other liens (like unpaid taxes) or judgments against the borrower which would have priority over its mortgage.  The attorney is well-versed in reading title work and knows what to look for to protect the lender in this regard. 
2. Review/preparation of documents-  The attorney acts as the mediator between the lender and the borrower to make sure that there is a meeting of the minds on the loan.  Is the interest rate right?  Are the terms of the loan correct?  Is the escrow account for taxes and insurance accurate?  Has the lender done anything which is contrary to any state or federal regulation which would invalidate the loan?  The attorney makes sure that the documents are in order, especially the closing statement which shows how the loan will be disbursed.
3. Execution of the documents- The attorney protects the borrowers to make sure that they understand the documents.  Is there a pre-payment penalty?  What will the payment be?  Can the payment go up?  Do the borrowers understand that they have three days to cancel?  Do they understand that if they fail to pay the mortgage, they will lose their house?  The attorney protects the lender in making sure that all documents are validly signed and notarized.  The attorney also gets identification from the borrower to prevent identity fraud. 
4. Recording of the documents-  The attorney makes sure that the new mortgage is recorded and the old mortgage is satisfied at the county recorder’s office. 

The attorney also makes sure that the loan proceeds are disbursed according to the HUD closing statement.  Having an attorney supervise all parts of the closing make sure that the process runs efficiently.  Borrowers and lenders confirm that the closing is consistent with how they agreed.  The attorney should continue to supervise this process.