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wmyers
Michigan
7 Posts |
 Posted - 08/20/2007 : 07:17:56 AM
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quote:
Originally posted by crtowles
I was speaking with another fellow notary the other day and she shared with me a fantastic idea she and a few others are doing to help insure payment from companies in the event the borrowers cancels, etc. The idea is to have a document that the borrower would sign at the time of closing that states that if the loan doesn't go through for any reason then they are responsible for payment of all notary fees. Now I don't know if this violates any RESPA laws or any other law, but, it seems to me that if the appraiser can get paid then we should be able to as well. We are both subcontractors. And we all know the appraizer always get his/her money regardless to the outcome of the closing. What do you guys think about this?
Carmen
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Kate
California
8 Posts |
Posted - 01/07/2007 : 03:28:59 AM
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quote:
Originally posted by Sylvia_FL
There was one lender who always included this document in the package, that the borrower was responsible for paying the notary fees if the loan didn't go through for any reason. Most of the borrowers refused to sign it - their RTC gives them the right to rescind without cost.
I know I wouldn't sign such a document.
I have never had a borrower refused to sign that document. In fact, I had one borrower sign a similiar document for the signing company, and the signing company finally got them to pay, 3 1/2 years later I got a check. Couldn't believe it.
kate |
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Sylvia_FL
Florida
46 Posts |
Posted - 01/07/2007 : 01:57:55 AM
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There was one lender who always included this document in the package, that the borrower was responsible for paying the notary fees if the loan didn't go through for any reason. Most of the borrowers refused to sign it - their RTC gives them the right to rescind without cost.
I know I wouldn't sign such a document. |
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dfye@mcttelecom.com
New Hampshire
681 Posts |
Posted - 12/13/2006 : 10:31:10 PM
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If a document of that kind surfaces in a closing package, it is more than likely because the borrower has been informed about it and agreed to adhere to it. If they were unaware of this document, then they should contact the lender immediately.
As I mentioned below, I would be watching the HUD and if I still was not sure or did not hear anything about paying the notary, I would be on the phone with the lender immediately. If I was unable to get ahold of anyone, I would not sign it because even if I utilized the cancellation, the notary still has to be paid by somebody. If the borrower is in fact responsible to pay the notary, then I would demand payment right on the spot from the borrower. This practice just sounds so wrong.
My best philosophy is whenever in doubt, DON'T!
Legal Eagle Para Professional Services |
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PeterLusby
California
15 Posts |
Posted - 12/13/2006 : 10:45:39 AM
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I have done work from time to time for a couple of agencies that insist on me getting a similar document signed along with the rest of the package. I never had a problem with getting it signed. Personally, though, I prefer to work with agencies I know and trust, or directly with escrow companies.
Regards
Peter
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dfye@mcttelecom.com
New Hampshire
681 Posts |
Posted - 12/12/2006 : 11:09:37 PM
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Devil's advocate here again! If I were a borrower, I would be looking at the HUD before I signed any document of that kind to see if the notary fee is included in the closing costs.
Legal Eagle Para Professional Services |
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n/a
California
2 Posts |
Posted - 12/12/2006 : 07:57:39 AM
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I've done direct work with two different companies that DID include this type of doc in their package. The borrower's had to sign stating that they would be responsible for payment to Notary regardless of recission.
Don't know how they got around the legality of it. I don't really care as long as I get paid for services rendered. |
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Renee
Michigan
549 Posts |
Posted - 12/11/2006 : 10:56:06 PM
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I would highly recommend seeking some legal advice before implementing such a document, or ANY document for that matter.
Appraisals are part of the loan APPLICATION process, and notarizing/assisting in obtaining CLOSING documents is part of the CLOSING or SETTLEMENT process. Therein lies a huge difference.
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dfye@mcttelecom.com
New Hampshire
681 Posts |
Posted - 12/10/2006 : 11:17:37 PM
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Devil's advocate here! Go back to your original contract with the signing company. See if there is anything in there referencing notary payment if the signing does not happen or cancels. If not, then you should renegotiate your contract. If the signing company is unwilling to cooperate, are they worthy of your time?
Legal Eagle Para Professional Services |
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jbelmont
California
3106 Posts |
Posted - 12/10/2006 : 11:07:41 AM
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| I don't know if your idea is legal or not, but it might get you in big trouble with the lender or signing company. But you could state that your terms for doing the transaction involve a borrower's promise to take responsibility for payment affidavit. Interesting idea. |
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crtowles
California
553 Posts |
Posted - 12/10/2006 : 02:57:53 AM
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I was speaking with another fellow notary the other day and she shared with me a fantastic idea she and a few others are doing to help insure payment from companies in the event the borrowers cancels, etc. The idea is to have a document that the borrower would sign at the time of closing that states that if the loan doesn't go through for any reason then they are responsible for payment of all notary fees. Now I don't know if this violates any RESPA laws or any other law, but, it seems to me that if the appraiser can get paid then we should be able to as well. We are both subcontractors. And we all know the appraizer always get his/her money regardless to the outcome of the closing. What do you guys think about this?
Carmen |
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Topic |
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