Posted by Anonymous on 11/18/05 9:34am
Msg #77375

Didn't collect closing funds

Hoping someone can help. Did a signing last night where docs were sent to borrower. I didn't see the docs until I got there. I somehow missed collection of closing costs in the instructions to notary. What I'm hoping someone can tell me is who I should call first. Should I contact the borrower, the SA or the TC? I'm new and can use all the advice I can get. Thanks!

Reply by Nate_MN on 11/18/05 9:37am
Msg #77376

I would call the borrower and try to get the funds from them before I sent the package back.

Reply by eXpedN_TX on 11/18/05 9:47am
Msg #77378

Do you still have the docs? If it were me, I would see if I could collect from the bo and add it to the package...if you still have the package. I think it's best to try and fix your errors first, as long as it doesn't hold anything up. Otherwise, I would contact those that hired me to see how they would like me to handle it. Maybe they will contact the bo and have them mail the funds themselves???? Good luck!!!

Reply by eXpedN_TX on 11/18/05 9:47am
Msg #77379

I agree with what Nate said.

Reply by Anonymous on 11/18/05 9:49am
Msg #77380

Thank you Nate and eXpedN! That was my first inclination, but I want to be sure and I want to be professional. This site and all of you have been a fantastic wealth of information! Thanks to everyone!

Reply by Anonymous on 11/18/05 9:52am
Msg #77383

have you sent off the docs?

Reply by Anonymous on 11/18/05 9:54am
Msg #77385

Still have docs since the UPS drop off isn't open yet

Reply by Art_MD on 11/18/05 9:52am
Msg #77384

Since it was done last night, the docs won't be expected until Monday. If you collect funds today and get into box tonight, or collect check tonight, you can get it into a Sat. pickup. No harm -unless borrowers won't give you a check.

Art

Reply by Anonymous on 11/18/05 11:29am
Msg #77414

OK...so I spoke to BO and she says that no funds were due. She is now calling her LO. Who should I call at this point? Or should I just wait for someone to call me? The only phone #s given to me were the TC and the SA......Thanks by the way to everyone who's answered. ;-)

Reply by Nate_MN on 11/18/05 11:52am
Msg #77427

I am assuming that SA is meant to mean Signing Service, and I think at this point I would call the Signing Service. Tell them about the oversight, that you contacted the borrower, the borrower is now contacting the LO because they did not think they needed to bring funds. Maybe the borrower is correct, and a broker credit should be on the HUD. It might be better if you tell the SS about the oversight, instead it them finding out from the Title Company or Lender. Then at least they know you are working already to correct the mistake. Just what I would do. There may be other suggestions, and as long as you fix the problem and don't delay funding I don't see a problem with other ideas.

Reply by Beth/MD on 11/18/05 11:59am
Msg #77431

I did a loan last month that had instructions to collect a certified check from the borrower. Borrower didn't have the check. Evidently, they'd taken care of the "collection" prior to the signing. Was a new HUD issued that changes this for your borrower?

Reply by Anonymous on 11/18/05 12:19pm
Msg #77445

PHEWWW! What a morning! Thanks to all who posted, I appreciate and needed all your help and support. All ended well. Like I said, I'm new. It was 2 loans and one paid for the closing costs of the other. I spoke with BO and LO. LO also spoke to TC. Everything is correct and on it's way. However, I found it confusing that I had 2 sets of docs. And each set had instructions to notary. One said that no funds were do, which I took to mean for that particular loan. The other said that funds were do. HUD said that funds were do on this loan also.

Reply by CaliNotary on 11/18/05 12:29pm
Msg #77450

This situation is really not a big deal. About the only thing you did wrong was mising mentioning it to the borrower at the signing. If they told you that there were no funds due, that's good enough. You didn't even need to call the SS at that point. If they were unaware that funds were due and didn't have a cashiers check, that's good enough, it's not our job to wait for them to go to the bank or come back and pick up a check because nobody told them in advance.

If they have a check to give me to return with the docs, great. If they don't they don't and that's not my problem. In either those situations I just return the docs and let them work it out directly with the TC.

Reply by Rick_NY on 11/19/05 8:57am
Msg #77632

To CaliNotary Re: Didn't collect closing funds

> If they have a check to give me to return with the docs, great. If they don't they don't and
> that's not my problem. In either those situations I just return the docs and let them work it
> out directly with the TC.

Point of information: I have never seen any closing intructions that did NOT say to "adjourn the closing if the borrower is short of funds required to close."

Not collecting funds due CAN become the signing agents problem, just like disregarding any other closing instruction. Since when do we rely on what the borrowers tell us?

Reply by CaliNotary on 11/19/05 1:43pm
Msg #77697

Re: To CaliNotary Re: Didn't collect closing funds

I wasn't talking about disregarding closing instructions. OBVIOUSLY, if you have a written instruction then there shouldn't be any question of what to do. I'm talking about when we have to make our own judgement calls, which is a very common situation for us to be in.

I just had a signing this morning with $535 in funds due. Of course the borrower wasn't aware of this. I had read your post earlier today so i made a point of checking the closing instructions carefully and nope, there was nothing in there about what to do if the borrower didn't have the funds.

In this case, part of the funds due was a $350 appraisal fee included on the settlement statement that the borrower had already paid cash for. He did have the cell number of his loan rep, who of course didn't answer, although he did call back later in the signing and told the borrower the $350 would be removed on Monday, so I collected a check with the difference as the amount.

But if the borrower couldn't have gotten a hold of the loan rep and didn't want to write a check until he had an answer, there's no way I would have adjourned the loan signing. That isn't my call to make and I sure can't force the borrower to write a check if he's unwilling to. I would have had the docs signed, returned them with no check, let the borrower work it out on Monday, and not given it a second thought. Just as I've done several times in the past, with no negative reprocussions.

Reply by Art_MD on 11/18/05 12:36pm
Msg #77454

Glad all's well.

For info, and for others who may read this.

Quite a few time, when there is a refi and a HELOC, funds are taken from the heloc to pay some costs on the refi.

Example refi to lock rate, lower rate etc:
Old loan 100,000
balance 99,000

Closing costs - including escrow, transfer taxes, fees $4,000

So borrower needs to bring $3,000 to table.

BUT....

Is taking a HELOC for $25,000.
An initial draw of $3,000 is taken from this loan, and applied to first loan. This will show up one of 2 places on a HUD for the first loan ::: a line item in the 1500s saying "transfer from loan xxxxxx" with a negative number. or line 1601 with the same note but a positive number.

Art

Reply by Anonymous on 11/18/05 12:47pm
Msg #77465

Art, you are a plethora of information and I THANK YOU..

You have been most helpful! thankyou, thankyou, thankyou, thankyou!

Reply by Anonymous on 11/18/05 12:48pm
Msg #77467

Re: Art, you are a plethora of information and I THANK YOU..

I thank all of you as well!

Reply by SarahBeth_CA on 11/18/05 2:02pm
Msg #77479

Re: Art, you are a plethora of information and I THANK YOU..

I cannot see the word plethora and not immediately think of The Three Amigos. "Heffe, would you say I have a plethora of pinatas?" "Si". "Heffe, do you know what a plethora is? ... (and so on)

Reply by Anonymous on 11/18/05 2:39pm
Msg #77492

Re: Art, you are a plethora of information and I THANK YOU..

That's funny....I never even thought of that....but I remember now and am LOL!!!

Reply by Roger_OH on 11/18/05 12:22pm
Msg #77448

Were the instructions of a general nature, or did they SPECIFY that a check was to be collected for $XX?

Did you check the HUD for any amounts due?? That's pretty basic and would have saved you this grief.