Posted by JC on 7/24/04 7:13pm
Msg #4921
Loan Doc
I have not done any signing yet but am studying and looking at sample documents. I would like to ask a couple of questions to those of you who are experienced. 1) What is the definition of "Rider" vs. "Note?"
2) Is "Lender's Escrow Instructions" the same as "Closing Instructions? They look very much alike to me.
3) When a lender states "provide 2 certified copies of the Deed of Trust and Note," am I supposed to make 2 copies of the Deed of Trust and Note for the loan package and notarize each copy? Also, I know I am supposed to give two copies of "Notice to Cancel" to each owner. If there are three different owners, for example, does the loan package come with the necessary number of copies of the "Notice to Cancel" or am I supposed to make copies for each owner for the signing?
Thanks a lot for answering my questions in advance.
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Reply by Sylvia_FL on 7/24/04 7:25pm
Msg #4922
1) A Rider is an "attachment" to the note - and the mortgage.
For example, if there is a prepayment penalty to the loan, there could be a prepayment penalty rider on the Note.
If the property is a condominium, there could be a condominium rider.
Could also be an adjustable rate ride, a balloon rider, VA rider, PUD rider etc.
They "ride" on the back of the note and mortgage.
2) Don't worry about the Escrow or Closing Instructions, mostly those aren't for us. Although I do skim through the closing instructions to see if there is anything about signing in blue or black ink that wasn't on the Notary instructions.
3) When you send the dos back to the title company, they will make the certified copies for the lender - although some companies will put a "certified copy" to be signed along with the originals.
The RTC, the package should come with enough RTC's for each person to have 2 copies each, if it doesn't I will usually make the copies to comply with the RESPA law - same with the TIL - each person has a copy each.
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