Posted by SamIam_CA on 4/14/05 11:09am
Msg #31748

Lien Perfection and CA jurat questions

I did a loan last night and came across the following in the “Lender’s Closing Instructions”

“Lien Perfection – Lender requires non borrowing spouses or individuals who remain on title or retain an interest in the property (i.e. dowry, marital homestead) (with lender’s approval) to sign specific documents to perfect lender’s lien as follows: If non-borrowing spouse is not on title: Truth in Lending disclosure (final) & Itemization of Amount Financed.”

All of the loan docs identified the borrower as “a married man, his sole and separate property”. However, this is California which is a community property state. So I had the wife sign her name on the TIL & Itemization page. Was I correct? I also put little sticky notes on those pages for the title company that said spouse signed per Lien Perfection instructions.

Second Question: When a jurat does not have the 2005 California wording I have been using a stamp to correct the wording. Then I fill out both jurats - the one that was pre-printed and mine. Is that overkill? Should I put a line through their section and only complete the correctly worded area?
Thanks for your help! Sam in San Diego

Reply by janCA on 4/14/05 11:26am
Msg #31752

When someone signs as sole and separate property, the spouse does not sign, at least that is what I have been told by title companies and that is the rule I have followed. The best thing you could have done was get in touch with SS or lender, whomever your contact person was in order to verify this. Usually, the spouse's name would be typewritten on the document he/she is to sign. Countrywide is the only lender I have come across that actually wants the NSA to print the name of the non-borrowing spouse on the legals and have them sign. And yes, I would say the jurat thing is overkill. I cross out the wording on the original, stamp mine and fill it in. that's really all that is necessary.

Reply by SamIam_CA on 4/14/05 11:48am
Msg #31758

"Posted by Bob-Chicago on 4/15/04 12:07am
Msg #1504 from 68.72.117.182

State laws, of course, differ, but generally it means that the spouse of the borrower signs the mortgage, (DOT). RTC, TIL, Itemiztion (and sometimes additional docs as reqd by lender, even though the spouse is not on title and/or is not liable for payments on the loan. Many states give a person's spouse rights in real estate owned solely by the other spouse, especially if the real estate is the principal residence (HOMESTEAD) of the couple. As a NSA, it means that you would have the non-borrowing or non-owning spouse sign only certain documents as designated by the lender. The spouses signature then makes their interest in the property subject to the mortgage."

Sam here - I'm so confused! Bob said "as designated by the lender". Well it was in the lender's instructions - but the wife's name was NOT typed out on the documents.

Reply by SamIam_CA on 4/14/05 12:06pm
Msg #31764

Forgot to add that the signing was after 6pm so the title co. who sent me the edocs was already closed.
Sam

Reply by janCA on 4/14/05 1:59pm
Msg #31782

I would call the lender now and ask them if you have done the right thing. At this point, there is nothing you can do, so I would want to know whether I did the right or wrong thing.

Reply by SamIam_CA on 4/15/05 10:05am
Msg #31939

I got to talk to them yesterday - about 5 minutes after I sent the package off. She said that she "didn’t think that applied in this case" and "not to worry since those are non-recording documents". Okay... Not sure why doing it would be in the instructions if they didn't want it done, but I assume that is why they didn't have her name printed on the forms. I should change my business cards to say NSA/psychic.

Reply by Stephanie_CA on 4/14/05 11:51am
Msg #31760

Regarding the CA Jurat question:
I will draw one line through noncompliant Jurat and attach/add a compliant Jurat.
I neatly write on the bottom of noncompliant form that I have attached CA Jurat.

Reply by Jon on 4/14/05 7:18pm
Msg #31853

NEVER fill out the incorrect jurat, by doing so you are violating Gov Code 8202. Simply line through the incorrect verbage and attach(by way of stamp or loose cert) a compliant jurat.

As for the Lien Perfection, there is no way for you as the SA to determine if the spouse needs to sign or not. I have had situations where the borrower acquired the property when married to one person, had that person sign a quitclaim, then get divorced and re-married, and the new spouse had to sign another quitclaim. I would include a note explaining the circumstances and send it in. If you want, you can also call the title co just to give yourself peace of mind, as has already been suggested.

Reply by SamIam_CA on 4/15/05 10:07am
Msg #31941

Stephanie and Jon - thanx for answering, will do! n/m