Posted by cjNcv on 9/21/06 5:41pm
Msg #147579

subordination agreement & POA

I got a call from a signing service asking me to have a subordination agreement signed. The docs (re-fi, I believe) had been signed already, but the husband is now gone for 6 months and the subordination agreement was not in with the original docs. The wife has a power of attorney but the signing service person didn't know if the subordination agreement would be in both of their names, or just in hers. He was suppose to find out & call me back, but I never heard from him. He did call 'Mrs.' though & told her to give me a copy of the POA and to sign her husband's name. Well, Mrs. had other docs and a check to go back to escrow so I said, no problem - I could send everything back together. The escrow company had sent me the subordination agreement and it only had her name on it. I had her sign & initial, but did not have her sign her husband's name because he wasn't named on the document. Now they are saying I messed up by not having her sign her husband's name, that that was the purpose of my notary - that they were just going to write his name on the document when they received it back. They are sending it back to me & having me take it back to Mrs. tomorrow to sign her husband's name. ..... Is this kosher? Should I have had her sign her husband's name even though he wasn't named on the doc?

Reply by Charles_Ca on 9/21/06 5:45pm
Msg #147581

What is she subordinating. I have not run across this as a notary. The subordination agreements I am familiar with are between lenders where one lender subordinates his claim in time to another lender. Could you please elaborate.

Reply by cjNcv on 9/21/06 5:56pm
Msg #147582

To be honest, I'm not sure what it was for. There was another notorized signature on a separate document that just asked for my signers initials, but since I didn't handle any of the original paperwork, I don't know what this sub. agreement was being used for. I thought I was just witnessing the signature of my signer, which was the only name on the agreement itself.

Reply by Linda_H/FL on 9/21/06 6:08pm
Msg #147583

<<the husband is now gone for 6 months>>

How? Death - if so I don't think the POA is valid. Divorce? - that must have been one heck of a friendly divorce.

IMO something sounds strange about the who scenario.

Reply by Charles_Ca on 9/21/06 6:11pm
Msg #147584

I agree Linda, something smells like the bilges of an old

trawler. That is why I was wondering who was subordinating what to whom.

Reply by cjNcv on 9/21/06 6:29pm
Msg #147591

Re: I agree Linda, something smells like the bilges of an old

:o) The husband is in the Navy - he shipped out the morning after the signing after he was told he'd be spending his last 6 months here in San Diego. I really didn't get any uncomfortable feelings from the 'Mrs.' ...now I feel stupid for not reading the packet more carefully! I had just finished a lonnnggg refi signing and was looking at this as a short & sweet single sign & ship!

Reply by BarbaraL_CA on 9/21/06 6:25pm
Msg #147589

I thought immediately that he is miliatry and is deployed for 6 months. Very common here in San Diego.

Reply by BarbaraL_CA on 9/21/06 6:26pm
Msg #147590

Re: subordination agreement & POA - however....

if he husband's name is not on the paper then why would his name (POA signature) be needed on it?
That doesn't make sense. The document needs to be drawn up correctly (if it's not).

Reply by cjNcv on 9/21/06 6:33pm
Msg #147594

Re: subordination agreement & POA - however....

Thanks, Barbara - there's the answer I was hoping for! I'll be curious to see how it's done tomorrow when I receive it back. That's IF I receive it - I have the feeling I was the scape goat on this one. Even though they asked me to go back and said they'd pay me for both signings, I wouldn't be surprised if they called another notary.....you don't happen to be in Chula Vista do you?????

Reply by BarbaraL_CA on 9/21/06 7:02pm
Msg #147604

I'm not in Chula Vista - I'm in Clairemont n/m

Reply by Linda_H/FL on 9/21/06 6:35pm
Msg #147596

AH..never gave the military a thought -

Still curious as to what the SA is for..

Reply by cjNcv on 9/21/06 6:46pm
Msg #147600

Thanks to Linda, Barbara & Charles. I'll add to this string if I get the re-sign tomorrow to let you know what the thing was actually for :o)

Reply by Jenny_CA on 9/21/06 8:30pm
Msg #147622

"...now I feel stupid for not reading the packet more carefully! "


You are not responsible for the packet, you are not wearing an "attorney hat" or any other for that matter. Good luck with it.

Reply by NCLisa on 9/21/06 9:25pm
Msg #147640

Most lenders don't require the subordination agreement be signed by the borrowers, if it is drawn by a lender. I know that in NC, the attorney's like to draw them so that the borrower has to sign (I removed the borrowers sig blocks off all the templates that I created at the last couple law firms). It depends on the lender and what state the TC is in that drew the Sub Agreement. If they both hold title to the property, and he signed the mortgage, then he has to sign the subordination agreement or to it by AIF.

Reply by cjNcv on 9/22/06 2:13pm
Msg #147822

Re: subordination agreement update

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!

Reply by NCLisa on 9/22/06 4:01pm
Msg #147855

Re: subordination agreement update

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.