Posted by Christine/MN on 5/25/13 11:13am
Msg #471241

Escrow Docs Sent to Borrower - Strange Closing

Hello,

I did a last minute closing Friday evening. The closing documents were emailed to me and I was instructed to make sure to obtain the escrow docs provided directly to the borrower and include with the return FedEx delivery. The borrower is a busy professional woman, and didn't read the email sent to her by the title company saying "review and sign where indicated." I did not review those documents as I wasn't involved in that piece of the closing. Turns out the BO did not sign - just printed and gave to me. The BO called today wanting to know if I could come back to review with her and notarize one of the documents. She is located on the other side of town and I have appointments the remainder of the day. She asked what she should do to make sure everything funded on time, and I suggested signing where indicated (what title told her to do) stop by a bank and get the one document notarized, and gave her the location of a FedEx right by her house.

Should I have handled this differently? It would have cost me three bookings to return and go over the escrow documents with her, and my engagement as the notary did not include the escrow documents. Thank you.

Reply by Blueink_TN on 5/25/13 12:09pm
Msg #471243

So you returned unsigned escrow docs? Why? Escrow documents are part of the closing, no matter how they're received. Unless I'm not reading this right, I would say you should of made time to go back and finish your job.

Reply by John Tennant on 5/25/13 12:14pm
Msg #471244

I disagree Blueink. Her instructions were to obtain them and return them with her package. She was not instructed to perform the escrow portion of the closing. That communication was direct between borrower and title co. In addition, it possibly was not included in the payment offered for closing the loan portion.

Reply by Blueink_TN on 5/25/13 12:21pm
Msg #471246

Really John?

Why in the world would anyone be asked to obtain & return unsigned documents? A little common sense is needed here.

Reply by John Tennant on 5/25/13 12:52pm
Msg #471255

Re: Really John?

After reading the other responses it still appears to me that she did as directed. So yes, "really"{.

Reply by JAM/CA on 5/25/13 12:16pm
Msg #471245

You should have taken control of the escrow docs and had those signed along with the
loan docs, notarized where necessary and returned all docs. You will need to return to
get this taken care of and preferably have escrow docs signed with same ink.

Problem is, new day for notarizations. If docs need to be notarized in the escrow docs,
it needs to be dated for today. Could create a major problem. May have to be resigned.

Reply by Christine/MN on 5/25/13 12:27pm
Msg #471247

I appreciate the feedback. I never received the escrow documents and had been told Title had handled this directly with the borrower. I didn't review the documents - simply included the packet with the closing documents I handled.

Reply by GOLDGIRL/CA on 5/25/13 12:36pm
Msg #471248

Well..... of course, you wouldn't/couldn't have dropped 3 other jobs today to return to her (under the circumstances as I understand them.) Sounds like she'll get the job done on her own based on your suggestions. Did you explain that the escrow docs were her total responsibility? (Still, borrowers don't understand how this all works.) As far as could you "have handled this differently"?: You could have suggested she travel to you if possible, and you could squeeze her in between/after your other appts today.

Only other thing, (and this is just me) I can't imagine grabbing a bunch of docs from a borrower and not at least look through them to make sure they were signed .... (would have taken only a minute) .... cos we all know borrowers can't do anything right on their own. And we all know that something like that will always come back to bite the notary, which it did in your case, even tho escrow wasn't part of your $$$ deal.

Sounds more like it that there was a miscommunication ... meaning even tho you didn't print escrow, they still "expected" you to go over them with her and at least notarize ... unless they made it absolutely clear you were 'hands off."

They probably sent escrow docs directly to her cos she wanted to see final numbers before the signing and had no idea she was to sign them separately ... but with a notarization? ... where did they except her to get that done last minute Friday if not by you? Then again, maybe your hiring agency didn't know there was a notarized doc in escrow pkg.

In any case, even if this was "your fault," I wouldn't have thrown three other jobs overboard to go back and fix this one. I'd take one screwed-up job over three screwed-up jobs.

Reply by Christine/MN on 5/25/13 12:43pm
Msg #471252

I'd spoken with the SS earlier, and she said we deal only with those documents specially assigned - nothing else.

Reply by Notarysigner on 5/25/13 12:51pm
Msg #471254

Sounds like lender had an Oops/ rush problem.

I have had this happen a couple of times..BWR gets Docs but only give me pages to be notarized. If not 'ATTACHED" I don t do the notarization.

Another (police chief) didn't want me to see everything, signed everything else and dated it the day before he called me. LOL Resign!

Reply by Luckydog on 5/25/13 2:14pm
Msg #471263

That's a hard call. You did your job with the package they sent you. They should have instructed you to make sure she filled out, and you notarized that one document, not simply pick them up. The problem I also see is that a notary that has not been assigned the closing, and has not been on their "approved" list (if they have one with certain lenders) and maybe rejected.
We often pick up and return documents with the closing package, HOA approvals mainly, maybe quit claim, or POA's. I never go over them with the buyer, just collect. It just seems weird they did not include those docs in your package and have her sign the whole package, and her's was just for review only.

Reply by JanetK_CA on 5/26/13 4:00am
Msg #471319

"Only other thing, (and this is just me) I can't imagine grabbing a bunch of docs from a borrower and not at least look through them to make sure they were signed .... (would have taken only a minute) .... cos we all know borrowers can't do anything right on their own. And we all know that something like that will always come back to bite the notary, which it did in your case, even tho escrow wasn't part of your $$$ deal."

This was my reaction to the original post, as well. I can't imagine someone handing me what were described as "escrow docs" and not reviewing them or at least questioning the borrower about them. It would be different if they were called "initial disclosures" or any other paperwork I was asked to return with a completed signing package. But when someone refers to a "loan package", I consider the escrow docs an essential part, regardless of how they got printed or who brought them to the signing. I think it's likely (with 20/20 hindsight, of course), that I would have assumed that the escrow docs (which would typically include the HUD) were just completed and approved last minute and sent directly to the borrower for the sake of expediency. I believe I also would have assumed that it was part of my assignment to make sure they were all signed. Only exception I can think of is if I was told by an escrow officer at an in-office signing that those docs were already signed (which I have had happen). I seriously doubt I'd take a borrower's word for it.

Reply by LKT/CA on 5/25/13 2:22pm
Msg #471265

<<<.......I was instructed to make sure to obtain the escrow docs provided directly to the borrower and include with the return FedEx delivery........I did not review those documents as I wasn't involved in that piece of the closing. Turns out the BO did not sign - just printed and gave to me.........Should I have handled this differently? >>>

During the confirmation call, I would have mentioned to the BO that MY instructions says SHE'S receiving docs to be reviewed and signed that those docs will be returned along with the rest of the closing docs. "Ms. Borrower, did you receive these docs? Did you review them and sign them?" This puts the BO on notice. If you get there, and she has not reviewed or signed them, then it's her responsibility to get them signed and returned on her own time.

But no, don't jeopardize other appts when she failed to do her due diligence. The fact that she's a busy professional woman is NOT your problem.

<<<I did not review those documents as I wasn't involved in that piece of the closing.>>>

Any docs I am to return with a FedEx package get reviewed by me - and it doesn't matter that they were sent directly to the BO. If those docs are going with me, I review them.

Reply by Christine/MN on 5/25/13 2:58pm
Msg #471268

Thank you again to everyone for your experience and feedback. A lesson lived and learned. Kind regards to all.

Reply by BrotherOwner on 5/25/13 3:07pm
Msg #471271

Christine check your PM

Reply by Lee/AR on 5/26/13 7:26am
Msg #471322

I think that regardless of what was/wasn't right, nice save!

B has to take some responsibility for mess up---she didn't do what was needed, she can fix it.

Reply by rolomia on 5/27/13 9:56pm
Msg #471417

Re: I think that regardless of what was/wasn't right, nice save!

I ALWAYS follow procedure as outlined by state law and NNA best practices. For me, that means observing BO signing docs., especially where one or more pages get notarized. What if BO later claims that he/she didn't sign said escrow docs. but a notary acknowledges his/her signature? BO might not have to repay the loan and then, the notary is held accountable for it. I NEVER take a BO's word for anything. People lie. I'm not going to lose my commission over such nonsense. The bank/lender ALWAYS gets their money. But, the notary is usually the last to be paid, if they're paid at all. They endure the greatest risk, both financially and otherwise. And, they make the least amount of money. So, we, as notaries, MUST observe the greatest care with regard to the signing process, irrespective of other entities involvement in same-said process. JMHO