Posted by Loretta Reed on 1/20/05 10:31am
Msg #17447

Delaware signings....

I have spoken with a couple of notaries lately that are in Delaware that are actually doing signings in Delaware and they are not attorneys. One also said that the attorney signs off on her closing but she downloads the docs and meets with the borrower. This is illegal, isn't it?
I have been asked to go into DE because the title company 1) could not find an attorney to do the closings when they needed it or 2) did not want to pay the $450+- attorney fee for the closing.
If I did not have to hear about this alot from my brother-in-law, who is the MD/DE rep for Beneficial, I would not be saying anything. Now, title companies are calling me to do the same thing and I won't do it. I could lose my notary commission for doing that and who knows what else.
Some notaries may be doing this out of ignorance because they just don't know that DE is an attorney state but I really blame the title companies and lenders for letting this happen. God forbid that the borrower get mad at the lender and tell on everyone involved to possibly get out of paying the loan.

Reply by Ted_MI on 1/20/05 2:20pm
Msg #17489

Loretta,

I really don't think it would be a case of the borrower getting mad at the lender (and then telling on everyone). It would probably be a situation where the borrower got in trouble financially, had trouble making the required payments and then consulted an attorney. And so the borrower inquires as to what his (or her) options are. The attorney probably would ascertain all the background material, realize that Delaware laws were not followed in the regard you mentioned, and then raise that as a defense to any cause of action filed by the lender.

Reply by Loretta Reed on 1/20/05 10:15pm
Msg #17558

Very good thinking. I wouldn't touch this with a 10 foot pole if I were a notary in Delaware but I spoke with a DE notary and she is doing them anyway.