Posted by Don Ross on 7/16/07 7:51pm
Msg #200189

signing at Title office or Attorney Office

A lot of calls for signing have to be done at a Title or Attorney office. They tell me it is some new law for equity loans. I don't know if it is only in Texas - I ask and can't get any kind of answer bout this... Anyone knows what is going on.. They call and think I could say yes without even knowing the address of signer. Some already have the appointment set at title office..

Reply by Lee/AR on 7/16/07 7:56pm
Msg #200192

Brenda...chime in here

All I know is, yep, only in Texas. Frankly, I think this sounds like a great solution to 'the Texas problem", but--what do I know, I'm in Arkansas.

Reply by Becca_FL on 7/16/07 7:58pm
Msg #200193

It is the law in TX that HELOCs must be signed in the lender, title or attys office. This is not new...been going on for at least three years that I know and I don't even live in TX.

Hopefully Brenda/TX will post and set you straight on it.

Reply by BrendaTx on 7/16/07 8:57pm
Msg #200199

This is the law regarding Helocs and always has been since 1997.

Do a search on my posts and the Texas Consitution for the skinny.

I'll try to find a post for you and will post it if I locate one.

Reply by BrendaTx on 7/16/07 8:59pm
Msg #200200

Don, try Msg #141191 and Msg #141195 n/m

Reply by BrendaTx on 7/16/07 9:01pm
Msg #200201

About the location...

If they already have the appointment set for you, then don't worry about where the signer lives. Just go to the title company or law office and do your thing. However, if you don't want to hate being there, don't let them set you up for 4:30 pm. Else you'll be holding up a staff of title company people who are dying to go home. Those can turn into long signings.

Reply by Linda_H/FL on 7/16/07 9:25pm
Msg #200205

Re : Brenda - quick question - Why???

Why just HELOC's - why not first mortgages too? Other than tapping into the equity on the property, why does this just apply to HELOC'S?

Sorry for the stupid question - humor me..I'm from FL..<G>..and TIA

Reply by BrendaTx on 7/17/07 6:23am
Msg #200238

Re: Re : Brenda - quick question - Why???

Somewhere in the "minutes" of the meeting of the interpreters of the "new" Tx Constitution back in 97-05 I found where the attenders of that meeting indicated that it was to keep would-be predatory lenders out of the homes of borrwers. As I studied this deeper, later I found it was a also a measure put in place to make sure that the borrowers had come to the table of their own free will to keep a good lender from ever being accused of being a predator.

Call it a means to keep the Tx Heloc biz deep in the pockets of the title company and real estate lawyers or call it a means to protect lenders after the huge fall of the Texas S&L business back in the 80's or perhaps, call it a protective response to a state's residents who have only been able to secure a second mortgage on their homes in 1997. Prior to that there was no second mortgaging of the Texan's home. It's only been the last ten years that Texans could use their home for anything but a first mortgage except for home improvement. Lenders homegrown in Texas are very cautious about having another DoT on their security property.

Also, understand that the documents prepared for Texas mortgages of any kind must be prepared by an attorney. No exceptions. That way if anything is hinky on the mortgage it is presumed that a Texas lawyer assisted in the perpetration of that type of act against borrowers or against a weak financial institution.

The constitutional amendment of the new law in 1997 simply tried to continue a protective stance against the Texan's homestead and/or foreclosure IMHO. I can only gather this opinion of mine by reading the lawmakers' and interpreters' discussions in the archives of the new "interpreters" of that cons. amendment while they were trying to put it into law.

As to your question why not other mortgages? Almost always a new mortgage on a purchase or construction is closed in a title company. It's kind of like a given that the loan will close in the tc or law office. TCs are either owned by lawyers here or they have lawyers working for them to assist in document preparation and legal counsel.

In the RE law office I work in you would not believe the careful thought that goes into securing a lien when we are working for the lender or title company as legal counsel. Of course we do more commercial than residential mortgages so the amounts are usually closer to $1,000,000 ++ rather than less. Whether $10,000 or $1MM+ when we are involved in a loan these are accutely "papered up" to assure there will be no loop hole where the security property can be encumbered and value lost.

As to reverse mortgages not closing in title companies or law offices, or lender's branch, I wonder about that. They fall under a different section of the constitution which has not been interpreted so strenuously however, many title companies don't handle these in Texas because they feel that the liens should be closed within the walls of their establishments and lenders don't see it that way. Time will tell. I can foresee the RM in Texas becoming a loan which must be handled like the Tx Heloc in the future if each and every one isn't done perfectly to protect the lender from losing an asset. The bank and S&L bail out of the 80's is gone but not forgotten.

Further, I can foresee HELOCs being shut out from notaries unless the notary works directly for the title company, lawyer or lender. In other words, my opinion is that Texas doesn't have a rosy future for signing agents to continue as independent contractors.

More than you ever wanted to know? This is only my *opinion* after studying the background and talking to lenders, title company folk and lawyers.

Reply by Linda_H/FL on 7/17/07 10:31am
Msg #200290

Re: Thank you Brenda - for your response and the

time you put into it - why I like asking questions of folks like you - I know I get a good, comprehensive answer/explanation..