Posted by Jas-CA on 8/14/04 8:40pm
Msg #6085

Signature

1) I had a couple of signings where the borrower stated that they CANNOT legibly sign their name as typed exactly, but they can only sign their names the way they normally sign their names which looked very unique and not legible. So I let them. Is this o.k.?
2) 1-4 Family Rider. I noticed that this doc. is always included even in the owner occupied single home property. I thought this particular doc. was for apartments or condos as rental property. Am I wrong?
I appreciate your answers. Thank you!

Reply by patricia on 8/14/04 10:26pm
Msg #6088

regarding the 1-4 family rider, sometimes it is incuded when the property is owner occupied,
just means they can rent the property out if they choose. not problem with the borrowers signing that document.

Reply by Jon on 8/15/04 3:15am
Msg #6094

The 1-4 family rider allows the lender or mortgage company to collect any rents due on the property if the borrowers default on the loan. I have never seen this on an owner occupied property unless there was a second structure, like a guest house, or duplex that was able to be rented out. Maybe the borrowers have stated they receive rental income and only own 1 property.

Reply by JAS on 8/15/04 11:10am
Msg #6104

I have seen 1-4 Family Rider on every signing so far where the property was the owner occupied and they did not receive any rental income whatsoever.

Reply by Jon on 8/15/04 6:18pm
Msg #6124

In that case, I would guess that all of your signings were for the same company. Maybe they want to cover themselves if the borrowers decide to rent out their house in the future??? Anyone on this board can tell you that a 1-4 Family Rider is not the norm on most loans.

Reply by jas on 8/15/04 10:00pm
Msg #6128

you may be right.

Reply by patricial on 8/15/04 10:08pm
Msg #6129

my experience is that the 1-4 family rider is not a normal document for owner occupied properties but they do occasionaly show up, they cover the fact that the lender can collect the rents if the borrower defaults and also cover the issue of what is returned to the lender in the
case of foreclosure, which is everything that is included with the property minus whatever the
tenant has provided.

Reply by redonthehead on 8/15/04 11:13pm
Msg #6132

Concerning the signature. It has to be exactly the way it is typed on the document. If not, you need to speak with the lender. You really didn't state the reason for the borrower not being able to do this.

Reply by DMB CA on 8/16/04 1:22am
Msg #6133

I have worked directly for many lenders who want the borrower to sign their normal signature.
If they have to write out a first-middle-and last name that they usually don't, then their signature won't match their I.D.

Reply by Ninna Mantooth-Lopez on 8/16/04 8:10am
Msg #6138

As for the signature... when I sign a person whose signature is illegible.... I have them write a short statement on the name (or signature) affidavit as follows: "My signature as signed below includes all names as printed here (printed borrower name). " Then I create a signature line for them to sign below the statement and have them sign it. I've never had a situation where the lender or title company questioned this. Besides, if it is their true legal signature, legible or not, legally it shouldn't be questioned as long as the borrower indicates that it does include all the names as printed on the doc's.

Reply by JAS on 8/16/04 12:06pm
Msg #6148

Thanks, Ninna. That really clarifies it. Thanks, everyone!