Posted by LisaWI on 2/16/07 7:26am
Msg #175943

All Reverse Transactions

A division of Lenders First Choice. They specialize in Reverse Mortgages(obviously ) A little bit of training for free. Sounds like a good opportunity, and then I read their contract. In it, it states the notary must persue the borrower if the loan cancels.
First, I would feel strange going after someone for money who is doing this in the first place because they need money. As a matter of fact, not sure I could do it.
Second, is this even legal? Im not hired by the borrower, why would they pay in this event?

Always something new in this profession. I dont like to think the worst on signings, but I see little hope in recovering my fee for this one in the event it does cancel. And at the least a person spends an hour on these Reverse Mortgages.
Has anyone actually persued the borrower by a company request such as this one or agreed to these kind of terms with a company?

Reply by PAW on 2/16/07 7:46am
Msg #175947

ART provides a form which the borrowers sign stating that they are willing to pay the NSA in the event that the transaction falls through. According to an attorney, this is perfectly legal and enforceable since the borrowers agreed to it. I've done many RM's for ART and have never had to pursue my fee, and, as far as I know, no RM has rescinded or canceled. Historically (from what I've been told), less than 3% of traditional RM's are rescinded or canceled after the signing takes place. I do see this percentage increasing somewhat as RM's gain popularity and more and more lenders start insuring and underwriting their own versions.

Reply by Kate/CA on 2/16/07 8:29am
Msg #175956

Totally agree

I have done over 500 RM, have never, not gotten paid for one. Most borrowers are more informed on these loans, than any other type of loan. Actually, when you get to the RTC they don't want to hear it, as they state they are not going to cancel. I still inform them, just in case. I've done many signings for ART, they are very nice to work for, never signed a contract.

Reply by Ernest__CT on 2/16/07 8:42am
Msg #175962

I'm with PAW & Kate.

Every reverse mortgagee with whom I've worked has been very well informed. Remember, they have sat through long discussions and read a lot long before they get to the signing table.

The only thing about reverse mortgages that must be remembered is the amount of time they take. Plan on double the time for a "normal" refinance. NEVER try to hurry the participants! You'll hear some heartwarming and some heartbreaking stories. By law, the people taking a reverse mortgage have lived a long time. If you do not enjoy working with older folks, don't attempt reverse mortgages.

Reply by Kate/CA on 2/16/07 8:54am
Msg #175968

I never turn down a RM

I agree with Ernest, the borrowers are very well informed. Never had one surprised at the table.

I enjoy them more than the other types of loans. The people are very friendly and they are really looking forward to this. If YOU understand a reverse mortgage, it doesn't take so much longer than a regular loan. When I have informed borrowers, I have done them in 45 minutes. The packages are not near the size they were 5 years ago. Those were a nightmare.

Reply by BrendaTx on 2/16/07 9:44am
Msg #175983

Re: I never turn down a RM

They did cut back on a couple of forms but in Texas a

Reply by BrendaTx on 2/16/07 9:50am
Msg #175987

Re: I never turn down a RM - oops.

They did cut back on a couple of forms but in Texas an RM is about 200 pages.

Advice to Lisa: Take the ART Reverse jobs.

Reply by Kate/CA on 2/16/07 11:56am
Msg #176018

Re: I never turn down a RM - oops.

CA they are about 100 pages,sometimes less, once in awhile more. I had one about 6 months ago 176 pages. Those are very rare.

Reply by Ilona_OH on 2/16/07 7:46am
Msg #175948

It's not in my job description! n/m

Reply by PAW on 2/16/07 8:05am
Msg #175952

Re: It's not in my job description! Huh?

What isn't in your job description?

Reply by PAW on 2/16/07 8:02am
Msg #175951

Need the money????

>>> First, I would feel strange going after someone for money who is doing this in the first place because they need money. As a matter of fact, not sure I could do it. <<<

There are many reasons OTHER than "need the money" for doing a RM. I submit that more than half of the ones that I've done were not because the homeowners needed the money.

Reply by Stamper_WI on 2/16/07 8:13am
Msg #175953

Re: Need the money????

Does the company provide you a copy of the agreement to pay is you should havwe to collect from the borrower?

Reply by PAW on 2/16/07 8:31am
Msg #175957

Re: Need the money????

From my understanding, the NSA does not have to pursue payment with the borrower. ART or LFC will do that.

This is how the document reads:

SIGNING SERVICE FEE RESPONSIBILITY

The Principle (Seller/Buyer/Borrower) hereby acknowledges full responsibility for the Signing Service/notary fee (if applicable) should the transaction be cancelled or not close.

We the (Seller/Buyer/Borrower) hereby release and indemnify Lenders First Choice for any responsibility of payment for Signing Service/notary fee should we cancel this transaction or it not close for any reason.

Signed this _____ day of __________________

/Borrowers Signatures/

Reply by LisaWI on 2/16/07 8:41am
Msg #175961

Re: Need the money????PAW

This is how the contract reads that the notary has to sign:
"I, the undersigned, also hereby acknowledge that I would need to pursue payment from the borrower(s) in the event the excrow cancels after I have performed the notary."
Im not reading this as ART or LFC recoups the fee???
I quess the only way to find out is ask them.

Reply by Linda_H/FL on 2/16/07 9:05am
Msg #175970

Re: Respectfully disagree PAW

Borrowers are releasing lender from any responsbility for notary payment:

"We the (Seller/Buyer/Borrower) hereby release and indemnify Lenders First Choice for any responsibility of payment for Signing Service/notary fee should we cancel this transaction or it not close for any reason."

Notary's only recourse for payment is directly from the borrower.

IMO

Reply by PAW on 2/16/07 9:45am
Msg #175984

Re: Respectfully disagree PAW

Yes, this is true. But what I'm saying is that ART and/or LFC will contact the borrower to inform them they are responsible for our payment. I don't think that they would leave the issue up in the air. Fortunately, I have not had to find out and personally, don't think I will. Also, I've never had a borrower not agree to it.

Reply by LisaWI on 2/16/07 8:28am
Msg #175955

Re: Need the money???

And what are those reasons? If you care to share? I was under the impression thats what they were there for? I need to do more research on these.
Knowing all the facts is a good thing.
And if the borrower in this situation working for All Reverse Transactions knows up front that they would have to pay me if the loan cancels, that sheds a whole new light on the subject

Reply by LisaWI on 2/16/07 8:33am
Msg #175958

Re: PS.......

I am not trying to downgrade this company....only trying to figuer out if this will work for me. They have been very professional in our communications back and forth.

Reply by Lee/AR on 2/16/07 8:47am
Msg #175966

LisaWI...Check your NotRot mail. n/m

Reply by hcampersFL on 2/16/07 9:27am
Msg #175977

Could someone pm me a link for ART? n/m

Reply by hcampersFL on 2/16/07 9:28am
Msg #175978

Never mind I got it. Google is a beautiful thing! n/m

Reply by BrendaTx on 2/16/07 9:30am
Msg #175981

Re: Could someone pm me a link for ART? Beverly

I can give you a direct referral.

Reply by PAW on 2/16/07 9:39am
Msg #175982

Re: Need the money???

The proceeds of a RM can be used for just about anything the borrowers want. There are many different ways the borrower can get funds, including a one-time lump-sum distribution. I've had borrowers use the equity in their home to pay for a vacation (trip around the world), invest in a business venture, etc. What the money can be used for is up to the imagination and needs of the borrower(s). including simply to ease daily living by providing some additional non-taxable income each month.

Reply by Ernest__CT on 2/16/07 9:46am
Msg #175985

The last RM I did ...

... gave the couple a nice vacation to the sunny South during icy weather here, AND set up their son in a business that will likely succeed. He had worked for someone else (according to them) who had a basically good idea but not enough business sense.

Reply by LisaWI on 2/16/07 10:24am
Msg #176000

Re: Thanx everyone!!

I really do appreciate all the replies that have been given.

Reply by DellaCa on 2/16/07 10:56am
Msg #176004

Re: ART stands for ???? n/m

Reply by Linda_H/FL on 2/16/07 11:00am
Msg #176005

Re: All Reverse Transactions.. n/m

Reply by janCA on 2/16/07 11:31am
Msg #176013

The New Reverse Mortgage Formula

by Tom Kelly is an excellent book on Reverse Mortgages in very understandable language. I reference it often.