Posted by cjNcv on 9/22/06 2:45pm
Msg #147833

Subordination & POA .. again

(Continuation from Msg #147579 - 147822)

OK..I just received the Sub. Agreement to be re-signed. The Escrow company added the husband's name to the document. All the legal wording is confusing to me, but what I think I'm reading is that the original lender is remaining as the first lien holder on the DOT. I could be wrong, but that's what it looks like to me.

So, at this point, what I believe I'm to do is have her initial each page with her husband's initials / her initials; add a loose 'California Copy Certification by Document Custodian' form and a 'Power of Attorney Certification' form (both notorized).

Am I on the right track????? Thanks for everyone's input from today & yesterday!

Reply by NCLisa on 9/22/06 4:03pm
Msg #147856

A subordination agreeement means that the borrowers 2nd Mtg/Equity Line stays in second position, and that the new loan will be in 1st lien position.

I only have the borrowers initial each page if their are initial blocks, otherwise they only need to sign the document unless you have been instructed otherwise.

Reply by NCLisa on 9/22/06 4:04pm
Msg #147857

And yes, you do need to notarize their sigs. I'm not sure what ack's CA uses these days. (When I lived there, there was not a separate POA ack)

Reply by LCS_CA on 9/22/06 5:00pm
Msg #147875

The purpose of a subordination agreement is to establish the priority of the liens. It would appear that the borrower refinanced their first trust deed and their equity line is going to remain open. If there was no subordination agreement, the equity line or second deed of trust would move into first position and the new loan would be a second lien. So, the subordination agreement establishes the priority of the new first trust deed and the equity line remains in second position.

Not all subordination agreements are signed by the borrower, but some are. In all cases the subordinating lender will sign.

I can't believe that the escrow expected you to have the document signed without the husband's name appearing on the document or a signature block for his name the first time you went out to the borrower. So I wouldn't worry about missing that the first time. She will sign her husband's name by her name, as his attorney in fact (Joe Blow by Mary Blow, his attorney in fact). Usually the initials can be JB by MB, aif, but, you may want to check with the company that sent the form to see if they have a specific way they want it signed, but usually this works. You will be notarizing her only, as she is the person appearing before you. If she has the original power of attorney, you can certify a copy, see Probate Code 4307 from the notary handbook.

I'm not familiar with the California Copy Certification by Document Custodian or the Power of Attorney Certification form, so I can't comment on that part of your post. Maybe someone can address those forms.

Good luck!

Reply by BarbaraL_CA on 9/22/06 5:59pm
Msg #147885

There is a form for Copy of Power of Attorney...

If you do not have it, email me and I'll send it to you - or - you can make your own. The wording is:

COPY CERTIFICATION OF POWER OF ATTORNEY

State of _________________________
}SS.
County of_________________________



On this the __________ day of _____________, __________, I certify that the attached
Day Month Year

document is a true, complete and unaltered photocopy of a power of attorney presented to

me on this date by ____________________________________
Neme of Person Presenting Document

under Section 4307 of the California Probate Code.











______________________________________________________
(Signature of Notary Public)

Reply by CJ Wilson on 9/22/06 7:25pm
Msg #147905

Forms & Wordings...

You guys have been a big help - thanks!! I'm on my way...again! cj