Posted by CCountry on 10/9/07 6:39pm
Msg #215649

Payment from Borrower

Does anyone know if it is OK to use a letter for the borrower to sign at the table that would be an agreement to pay the notary? If the signing service does not pay...which so many are starting to do...what type of protection does a notary have?

Reply by Sylvia_FL on 10/9/07 6:42pm
Msg #215650

No it is not OK.
Borrower has already paid all closing costs on the HUD.

Reply by MikeC/NY on 10/9/07 6:50pm
Msg #215652

I don't think it's a good idea

For one thing, if the borrower balks at signing that letter, you may jeopardize the loan. Secondly, the borrower is already paying for your services even if the signing service decides to stiff you - I don't think it's right to ding them twice for something that's not under their control. Your battle should be with the SS, the TC, the lender, and whatever external agencies might be able to help you collect. Leave the borrower out of it.

Reply by MichiganAl on 10/9/07 7:32pm
Msg #215668

FlaMac, is that you? No no no, a thousand times no. n/m

Reply by CJ/OR on 10/9/07 8:18pm
Msg #215685

I understand

Its a RESPA violation ... but, consult your State Notary authority or a lawyer.

Reply by Above and Beyond Closings - Alice on 10/10/07 8:30am
Msg #215778

Here's my situation - The SS (Alvarado Group) included this type of letter into their package. The borrower recinded the loan all together. I contacted the title company b/c the SS went under and they told me about the letter and that I should contact the borrower. Against how I felt, I contacted the borrower and explained the situation and asked him to check his paperwork for this letter (the closing was 6 months earlier). He asked me for my address and sent me a check. He stated that he would gladly pay it because he knew that the mistakes were not my fault and I did spend 3 1/2 hours at the table. About a month later a check arrived.

I personally will never generate a letter like this but in this case it worked out. I think that it is really crappy that a SS would put this type of letter into their package. When you have a business you have to take the gains with the losses.

Reply by Sylvia_FL on 10/10/07 9:08am
Msg #215788

" think that it is really crappy that a SS would put this type of letter into their package."

I think it is crappy too, Alice.
But it is one thing for the title company to include it in a package, quite another for a signing agent to add it. Signing agents should never add documents to a loan package.