Posted by Anonymous on 3/31/06 5:05pm
Msg #110137

RTC question.

On all the RTC's that I've seen they all say to "send" in the form by the 3rd day at midnight if the borrower wishes to cancel, etc., etc.. They way I see it, it just needs to MAILED by that time correct? It doesn't mean that the receiver needs to physically have it in their hands right? TIA.

P.S., Sorry for the anon. This is the 1st time I post anon. I have to for certain reasons.

Reply by Charm_AL on 3/31/06 5:08pm
Msg #110138

send it in by midnight of the third day, I also tell them to call in ahead of time to let them know it's coming, should they rescind.

Reply by Anonymous on 3/31/06 5:15pm
Msg #110140

Me again. Thanks Charm for the info. Have you ever heard

of anybody sending in their RTC w/in the rescission period and not have the lender honor it or say that they didn't receive it?

Reply by Charm_AL on 3/31/06 5:28pm
Msg #110141

Re: Me again. Thanks Charm for the info. Have you ever heard

no I haven't, maybe they should send it certified...ok...Im off, tornado warnings in the next county...dinner in the tub anyone?

Reply by Ilona_OH on 3/31/06 6:07pm
Msg #110151

The postmark is supposed to be

before midnight is what I was taught. Also Western Union no longer sends telegrams so they can't do that either.I read that stopped on Jan. 27th this year.

Reply by Anonymous on 3/31/06 6:37pm
Msg #110160

I know a person that sent in their RTC the day after

the signing and the lender claimed they never received it. This poor borrower is screwed. She did not like the loan and was working with a different loan officer to get a better deal. A much better deal. A week and a half after she sent in the form she still had not heard from the canceled lender so she decided to call. They told her it had already funded and that it was too late. She asked me what she could do and I told her that she had three options, get a lawyer, refi with someone else anyway (of course pay closing costs again), or keep the loan and pay it as agreed. When she sent in the RTC she sent it return receipt. Almost two weeks later still no receipt. This woman was on the verge of tears as she was telling me the story. I felt so bad for her. It is sad to see a lender take advantage of someone nice like that. I will definitely be re-writing my RTC script for now on.

Reply by hcampersFL on 3/31/06 6:57pm
Msg #110165

Re: I know a person that sent in their RTC the day after

I always tell people if they consider cancelling to send it in certi. and fax a copy to the lender, LO, Title co. .
Loan I closed tonight had a form to send in after the 3 days is up saying that they didn't rescind.
B.

Reply by Les_CO on 3/31/06 7:36pm
Msg #110172

Re: I know a person that sent in their RTC the day after

She should call HUD!...and see an attorney. She could end up owning the company she puts out of business. All lenders I know of REALLY don't want to mess with the feds.

Reply by CaliNotary on 3/31/06 9:18pm
Msg #110179

Re: I know a person that sent in their RTC the day after

If she sent it return receipt then there should be a number she can track on usps.com. If she hasn't recevied the receipt back, chances are that the lender isn't taking advantage of her but they actually never received it. If the PO site shows they did recieve it then she's defintely got a much stronger argument.

I always tell them to fax a copy to whoever they've been dealing with, as well as mail it certified w/return receipt for their own protection.

Reply by MichiganAl on 4/1/06 12:18pm
Msg #110255

I handle it the same way. n/m

Reply by Lisa Prestegard on 3/31/06 11:48pm
Msg #110195

RTC question

When explaining the dates on the NRTC, I advise the borrower that it must be postmarked by midnight of (insert date) and that it should be sent "Certified Mail, return receipt requested".
The post office will "hand stamp" (postmark) any item while you are at the counter if you ask them to, thus ensuring the letters postmark date.

Reply by christiSocal on 4/1/06 12:16am
Msg #110197

call, fax, And certified mail. I tell em to cover all bases! n/m

Reply by FlaMac on 4/1/06 7:58am
Msg #110210

Yes! Better for the BO to be safe than sorry. n/m

Reply by ReneeK_MI on 4/1/06 4:36am
Msg #110200

I always advise borrowers that if they decide to use their RTC to fax it to their L/O AND the settlement agent additionally, and confirm by phone. This is in addition to whatever info is written on the RTC doc. I TELL them "if you do wish to cancel, please follow the procedure outlined here (instructions on RTC doc) AND CALL your L/O AND THIS SETTLEMENT AGENT (show them the agent listed on HUD - that's who's getting the funds/disbursing) to advise them, and confirm they will NOT disburse the funds."

Having been on the receiving end of RTC's for many years, I found that most of the time the borrower would fax it in to the settlement agent - likely that's due to most closings being done 'in office' and they instructed borrowers to do that. In turn, settlement agent would fax to me. NEVER in a million years would a Settlement Agent disburse on a cancelled loan (knowing it was cancelled). Every now and again a borrower would call me themselves, to confirm receipt. The mailed RTC would follow.

The settlement agent being the one with the funds - it's crucial that they be made aware BEFORE they disburse funds. In the scenario in this thread, where the borrower claimed to have mailed it but can't provide proof and the loan was disbursed - it's hard for me to imagine that she didn't pick up the phone and call someone. This scenario is the reason I advise people to CALL EVERYONE INCLUDING SETTLEMENT AGENT and make sure funds are not released inadvertantly.

Once the loan is funded, as her's was - there is no way to UNfund it, since the payoff to prior lien mtg is GONE, paid, done. You can't get that money BACK. Those are often wired. Unless she has some means of proving she communicated her desire to cancel SOMEHOW, to SOMEONE ...

In 14 years I never even heard of a situation where anyone, anywhere ignored a borrower's cancellation - if it was so much as whispered, it was honored, that is NOT a situation any lender or settlement agent would put themselves in. It would be an open/shut lawsuit.