Posted by Notary_OH on 11/13/06 6:50am
Msg #159479

New Form - Waiving right to legal representation

Did a closing on Friday - Delta Funding Corp. / Fidelity Tempe. There was a new form to be signed and acknowledged, I have never seen this one before. Here it is with the exact wording and punctuation:

"****PLEASE HAVE BORROWER TO HANDWRITE THE FOLLOWING INFO IN THEIR OWN HANDWRITING**** ( PLEASE HANDWRITE : STATING THAT HER/SHE UNDERSTANDS THE TERMS OF THE LOAN TRANSACTION AND IS WAIVING HIS/HER RIGHT TO LEGAL REPRESENTATIONS)

Has anyone ever seen this before? The elderly retired couple discussed just this for about 1/2 hour, spoke to the LO who told them that they had to sign. TC told me that the loan would not fund without it.

They didn't sign it, but completed the rest of the package anyway.

Any thoughts?

Reply by hcampersFL on 11/13/06 7:25am
Msg #159482

I have seen this before. I read it as since they are doing an in-home closing and didn't choose to have their lawyer present that they are waiving their right to counsel. Of course they have every right to take those documents to a lawyer or anyone for that matter and cancel during the recession period.
I am not a lawyer and don't play one on TV either.
JMO

Reply by LawrenceOK on 11/13/06 7:25am
Msg #159483

Nope, I have never see this before. I would not sign a document like this, nor would I expect any borrower to either. If I were taking out a loan and this was a condition to funding, I would be searching for a different lender. jmo

Reply by Teddog/CO on 11/13/06 7:33am
Msg #159485

That sounds very strange and no wonder the bwrs' didn't complete the form. I'm surprised they even signed the rest of the pkg for you. In all the time I've been in this profession , never, ever have I seen a form like that. I know for sure this gal would never sign it. Would you? Sounds very fishy. JMO

Wonder why the bwrs didn't do a Reverse Mortgage?

Reply by Lisa Prestegard on 11/13/06 7:39am
Msg #159487

I have seen a new form recently in CW/FSL pkgs...

it's similarly worded. Says something to the effect that the parties to the transaction were not denied legal representation (meaning that no one told them the COULDN'T have a lawyer present) In Florida (cannot speak for other states) it is illegal for a real estate agent to tell a client that they cannot use a lawyer for a closing. I would imagine the same law would apply to L.O.'s.
Nothing to get up in arms about... these sorts of forms are common when buying or selling real estate. I would imagine it's just another disclosure-type response to a lawsuit somewhere.

Reply by Teddog/CO on 11/13/06 7:50am
Msg #159492

Re: I have seen a new form recently in CW/FSL pkgs...

Lisa, you are correct. We have seen the forms that state specifically that the bwrs have a right to have an attorney re:loan docs and signing. Never a handwritten form releasing all their rights to legal representation. Perhaps I'm not reading the org/post correctly, but it certainly looks that way. I do need more coffee!! lol

Have a Great Day

Reply by Lisa Prestegard on 11/13/06 7:56am
Msg #159494

Was the loan in question an "immediate fund" loan,

on an investment property or 2nd home? Was the NoRTC waived? If so, I could see the parties having to sign something to that effect.
Just a thought, and in no way legal advice... I am not a lawyer and have never played one on TV.

Reply by BobbiCT on 11/13/06 8:04am
Msg #159497

Waiving right to personal legal representation - OLD FORM

I've seen variations of this for years.

It's a record for the lender that the borrowers could have hired an attorney to explain the documents to them and personally represent their best interests, not the lenders, and that the borrower decided not to do so.

It's a common lender's CYA form the the Lender did not tell the borrowers they could NOT hire and pay for an attorney to represent their best interests. The borrowers, of their own free will, decided to go for the less expensive alternative and represent themselves.

Many borrowers I talk to who sign these state1) "we did enough refinances we know what we are doing and don't need a lawyer to explain them to us," or 2) "we're taking this to our lawyer tomorrow and 'just paying him to review the documents and tell us if there's anything 'bad' in them'."

BS. Personal opinion only: I doubt very much if the lender and title company would hold up funding just because the borrower didn't sign that one form.

Reply by Lisa Prestegard on 11/13/06 8:05am
Msg #159498

Re: OLD FORM - exactly, Bobbi... you're spot on! n/m