Posted by Nancy in Florida on 6/21/05 11:30pm
Msg #46696

Someone dropped the ball again..... Mortgage broker

I had a closing for this evening and at the eleventh hour (docs finally printed and I was heading out the door) I called the attorney/title company to tell them I received the fax and was heading to the closing when she said his brother will be attending right? I said what brother? The borrower is meeting me at Juicy Lucy to sign and he didn't mention a brother. I knew this was a non owner occupied property but didn't know about the brother. The attorney said go ahead to the closing because the brother is local and will probably be able to meet you. Well I have been doing this long enough to know that I could take the 45 minute trip for nothing because the brother probably wouldn't be able to show up just like that. I called the borrower and I said you brother needs to be at the signing will he be coming? He said no, he lives in Texas, yeah that is really local to Florida! Anyway, turns out this was their Mother's condo, she passed away they inherited it and are refinancing it to fix up and sell. I called attorney/title co back and she said she would draw up a POA fax to brother in Tx and he would need to get it notarized and fax back, I could do the signing once she got the fax and he would have to overnight the original. I kept asking her if she knew if the Lender allowed POA's. (I have seen in some closing instructions that state very clearly they will not accept a POA.) The Attorney wasn't sure and has a loan currently that has a problem because of a POA she executed without getting approval first. The brother got the fax but couldn't get a Notary that late a night (He didn't look too hard) So the closing that was to take place at 6:00 finally got canceled at 10 and will be reschedued for tomorrow.

I totally blame this on the mortgage broker, told the borrower his brother didn't need to sign the docs and told the attorney/title company that the brother lived locally and would be available to sign. Why do they just say anything to get it to the closing table only for it to blow up once we get there? Do they really think that the SA and/or the Title company will say oh well we don't have all the signers but lets go with it anyway? I have usually worked with L/O for banks who have their own faults but Mortgage brokers are the worst when it comes to this type of stuff and it is so frustrating, don't they want to do it right the first time so they can get paid quickly. What is up with the Mortgage Brokers?

Reply by BK_FL on 6/21/05 11:40pm
Msg #46700

I had a similiar situation today as well, except in my case it was a long time seperated missing wife, in NY city somewhere? Title company can not find her either! They said go ahead with signing with just the husband, did so, sent them back. I too am wondering what these mortgage brokers are thinking lately or there is a lot of funny business going on lately after we send the docs back??!! BK/FL

Reply by ItsMe123 on 6/21/05 11:48pm
Msg #46701

What they are thinking is they have 3 days

They know they have 3 days to fund---if they are worth their salts they probably have the quit claim in process elsewhere. If not, they are boobs rolling the dice and hoping not to crap out. I have had several deeds done outside of escrow. It is called "trailing docs" as they are usually coming from somewhere else. If they have a "clear to close" from the wholesaler they would have showed a copy of the proposed deed and a method of getting it done. This is often done independent of escrow b/c cost issues.

Reply by Nancy in Florida on 6/22/05 12:14am
Msg #46707

Re: What they are thinking is they have 3 days

This loan does not have 3 days to fund, it will fund as soon as the Title co received the docs. No rescission on non owner occupied properties. No quick claim either, I asked and both will continue to own the property, the borrower in florida is not buying out his brother. Both brothers are owners (heirs) to the property but only the one living in Florida is taking out the loan. The brother in Texas is a Non borrower owner. It would make sense if the one was buying the other out then a quick claim would be warranted but according to the borrower in Florida they are paying off some of the Mom's debt and are splitting the difference on the balance of the loan proceeds and both will continue to own the property. Hopefully the lender will allow the POA if not then we will need to send the docs to Texas for the brother's signature.

Reply by Bob-Chicago on 6/22/05 6:50am
Msg #46727

Not the language police, but it is QUIT claim deed

If you say "quick " claim to a knowledgeable title co rep, you will sound green as grass
A quit claim deed transfers whatever interest the party has in the property but they are not stating that they have any such interest. Usually used among family members when the property is not being purchased by a third party.
In a warranty deed, generally used in an actual third party sale, the seller promised that they have good title , subject only to named exceptions

Reply by Joan-OH on 6/22/05 7:58am
Msg #46739

Same thing happened to me. I took a signing last week from a title company. The day I am to receive the docs I am told this is a lease to purchase. I wait for the docs to see if there is anything different in this type of loan to call the title company with questions. A few hours before the signing, I find out the sellers are going to be there so they are emailing seller's docs. When I took the job I thought is was a simple refinance - I know to ask questions now!

In this case, 2 brothers owned the property and I ask the buyers if both brothers are going to be there. They tell me one brother lives several states away but think the other brother has a POA. I wasn't told anything about this and I look at the lenders instructions and it says "NO POA's" I tell the buyers this might not be happening.

Seller shows up - without brother - and didn't have a POA.....never even thought about it and didn't even think his brother would have to sign. I looked at him and said, "both of you own the property, why would you think he wouldn't have to sign?" What a mess!

In the end, the brother in front of me was going on vacation with the other brother and took the paperwork with him so the brother could find a notary and sign his part. I'm willing to bet it still gets messed up. Totally Clueless!

I would never have done a purchase, both buyers and sellers for $100 - not in a million years. The only saving grace was they sent my check with the docs. I deposited that puppy before they decided this was so messed up it had to be redone!

Joan-OH

Reply by Nancy in Florida on 6/22/05 9:40am
Msg #46767

to Joan in OH

You gave the docs to the one brother to bring with him to get the other brother to sign? Did you get an okay from the TC to do this? As far as I have ever known you never let the buyers or sellers leave with any docs except their own copies. The reason being that it does get messed up when left up to the parties to complete the docs on their own.

In my case the brother/borrower here in Florida couldn't believe his brother in Tx would need to sign anything. He said to me but he knows about and is okay with it! LOL