Posted by snoopdogMs on 7/6/07 8:19pm
Msg #198767

Turn a blind eye?

I am closing more and more loans where the borrowers are caught between a rock and a hard spot and the interest rates or the type loan is not what they were told they are getting until I sit down with them . The fixed rate turns out to be a adj. or the rate is much higher. Is this a trend out there? They go ahead and sign because of their financial condition. It is hard to turn a blind eye or keep my mouth shut but I am just the notary. Anyone else out there experiencing the same thing?

Reply by CopperheadVA on 7/6/07 8:28pm
Msg #198771

What I have experienced is that the borrowers think they are getting a fixed rate, but when I get there with the docs they find out that it's fixed for only the first 3 or 5 years, and then it becomes an adj rate. They usually sign after speaking with L/O, who tells them they can refi after the fixed rate ends. I have also had borrowers that are told by L/O that they can refi in 6 months when their credit improves. It costs MANY thousands of dollars to refi, I'm thinking inside my head, you can really eat away your equity doing that! But I just keep my mouth shut.

Reply by Julie/MI on 7/6/07 9:27pm
Msg #198775

they can always have an attorney review the docs. We are not the ralph nader of mortgages. their financial condition, even here in Michigan, where the economy is so bad, is not due to job loss or illness, it's because of too much "consumering" as my priest would say, and they should not be using their equity in their homes to pay off credit card debt.
No one is forcing them to sign so how can there be a blind eye senario?

Reply by Lee/AR on 7/7/07 7:35am
Msg #198812

Seems to me the Bo has already done that.

I've seen my share of less than stellar loans and, while this is a snap judgement, I also see the big screen TV, 2 new cars in the drive, etc. And I've had a goodly number of refusals to sign because of the (I believe, LO inspired) Fixed Rate that is really an Adjustable down the road a few years. Some sign; some don't; they all understand. Haven't seen that many 'interest only' loans, but those few that I have done were for very affluent people who know exactly what they are doing. (And even then, I personally think they are nuts, but---hey, not my call--or any of my business.)

Reply by BrendaTx on 7/7/07 8:56am
Msg #198818

Re: Seems to me the Bo has already done that.

What gets me is that after they talk to the LO and he says "we'll refi before the rate adjusts" and they see the prepayment penalty of early pay off because they have asked and I have pointed it out.

They don't get it that the fink is lying to them. When they have those two pieces of information and still don't want to hear the truth/believe the truth, then it's not my business to connect the dots.

And, it might be the only shot they have at staying in their home another few years.

Reply by BrendaTx on 7/7/07 8:59am
Msg #198819

**It is hard to turn a blind eye or keep my mouth shut but I am just the notary.**

It's quite possible that this is the ONLY shot they've got at staying in their home. It at least gives them a shot at winning the lottery or finding a credit counselor to tell them how to adjust their living.

Reply by bigdog on 7/7/07 10:23am
Msg #198824

Not Turn a blind eye? Doing your job. IMHO

While I agree with you that it's hard to keep your mouth shut at times, like Brenda said, this may be the only out for them. We as SA's don't know the full story, and while I believe there are many LO's who are out for themselves and DO stick it to people, it is ultimately NOT our job to advise nor is it any of our business. Personally, I TRY not to look too deeply at the BO's numbers as that is very private and personal info. The less I know about their info the better. I just concentrate on ID's, my notarizations and their sig's. If they have ?'s, I point to the answers or have them call their LO.
In the end, I feel better knowing I left the signing knowing nothing about these people other than the very basics required to complete my job. You have to remain impartial and follow the rule of law.

Reply by BrendaTx on 7/7/07 11:30am
Msg #198828

Re: Not Turn a blind eye? Doing your job. IMHO

**Personally, I TRY not to look too deeply at the BO's numbers as that is very private and personal info. **

Totally. I agree. The less I know about them, the better. And, I suppose while it is the nature of others to be more curious, I am not a curious person by nature and have seldom thought to look over their numbers.

I have a very close female relative (hmmm, two or maybe three) who would bog down in a need for knowing all the personal info about people in signing packages.

To me, that says I am very self-involved in my own little world ----- not that others are nosy. (Seriously.) Or maybe it's just years of raising boys who ain't gonna tell me anything anyway, so why even bother to wonder!

Reply by jba/fl on 7/7/07 11:48am
Msg #198831

Re: Not Turn a blind eye? Doing your job. IMHO

I have had LO's tell bor. not to make any more payments, the drag it out till signing and when I get there the bor thinks fixed but adj/w/PPP and they are caught...but - again, why would one not pay their house pmt when due on advice of LO who is stranger to them? If it messes w/final figures, so be it, but we all know that it won't as HUD is last to be done. I hate LO's of this type, and I particularly hate when the bor. tells me their tale of woe when I have done my best to not pay attn to what I have to do. Again, motor homes, 2 monster trucks, jet skis all in plain view: lost my sympathy right away. Learned long ago I cannot be mother to the world: besides, who listens to their mother? what does she know? LOL

Reply by snoopdogMs on 7/7/07 1:33pm
Msg #198843

Turn a blind eye?

I am not concerned with figures or the borrowers credit status. I am talking about when the borrower looks at the note and the note says 7.65 not 6.65 as the borrower comes to the table thinking that 6.65 is their rate . Why does the lender quote them 6.65 and then put 7.75 on the paper work? Why doesn't the lender tell this to the borrower in the beginning? It seems they wait to the last minute at the closing to drop the bombshell leaving the borrower with 2 options, sign or walkaway. And by the way, this bombshell sometimes leaves us notaries with a no-sign at half price or whatever they are inclined to give us. Yes. these at- risk borrowers are at the mercy of the lender because of bad debt or whatever brings them to the table. But, to twist figures, loan types, etc. IMO is dirty work and I can't do a darn thing about it as my job is what it is. I.D. and keep quiet!

Reply by christiSocal on 7/7/07 3:05pm
Msg #198850

I agree, it SHOULD be that the LO tells the borrowers ahead of time whats coming. "Hey, your credit wasn't good enough for 6.65, so I had to go with 7.65". But in this world that just doesn't always happen. While we can't say HEY, WAKE UP STUPID! We can and should say "This is your note, it shows you your interest, payment, etc. Here's your prepayment rider, it shows you...... After that if they want to sign, it's up to them. And, yes there would be far fewer no-signs if LO's would behave themselves. We can dream, lol