Posted by BetsyMI on 6/29/07 9:31am
Msg #197713

What would you have done?

I had a closing last night for an investment property so there was no 3 day RTC, which I explained to the borrowers. There was a 1st and a 2nd, quite creative, and there were some questions I could not answer, and the LO did not return our phone calls.

The borrowers signed anyway but wanted answers this morning from the LO. I told them I had to fax the HUDs last night so that the funds would get disbursed. I thought the LO might still call them last night, so I told them I wouldn't fax anything until a few hours later, and to call me if anything changed. I received no call so I faxed the HUDs last night and I guess these people are stuck, right?

If companies are going to schedule loans after everyone at the TC goes home, it seems that someone should be available to answer questions after hours for a No RTC loan. The lender was on eastern time zone and was not available either.

The question involved closing costs shown on the HELOC agreement but that were not shown on the HUD. They also thought there was no draw from the HELOC but clearly there was, and that amount was being applied to the 1st loan. So you can see these were things I could not address.

Anything different that I could have done? Opinions?

Reply by spnotaryplus on 6/29/07 9:48am
Msg #197723

I had a similar situation here in NY and that's how I would have handled it.

Also it is not legal advise but common knowledge that Non Owner Properties, Second homes are treated as Purchases. they close same day and usually fund same day.

You did the right thing by directing them to their LO.

Steve

Reply by NCLisa on 6/29/07 9:51am
Msg #197725

Depends on what the disbursement laws are in your state. In NC, if the parties wanted to back out, they could, because the DT had not recorded. TC's disburse all the time prior to recordation of the docs, but that is illegal in NC.

Reply by ReneeK_MI on 6/29/07 9:58am
Msg #197727

Doesn't help after-the-fact, but ... I do see a lot of Helocs that show "closing costs" on the agreement, that will be waived unless the Heloc is closed prior to a set period - essentially acting as a PPP. In those instances, it's not on the Hud because it's not being paid unless/until. If that was the case here - it's pretty clearly worded on the agreement.

As for the draw - well, if he was short to close the 1st, then it could be shown to him that without the draw from the Heloc to PAY the costs short on the 1st, he'd have had to provide a check for that amount (for the first), and had a Heloc with a 0 balance. It might have made more sense to him, if he could clearly see that? This is something that can be explained w/out "explaining", I mean - you can point to this, this and this and show it clearly.

I definitely agree with the difficulties on these same-day funding loans - and nobody avail to address the borrower's questions. Those really need a plan in place beforehand, because there is little recourse afterwards. All you could have done was to reiterate to the borrower that there is no RTC, there is no RTC, there is no RTC - and allow them to make their own choices, don't take on their 'problems' as your own. I'm all about customer service - but their L.O. /Lender being unavailable would be their problem, and signing/not signing would be their decision.

Reply by Julie/MI on 6/29/07 10:08am
Msg #197730

Clearly, there is entirely too much table talk going on. Why would you talk about faxing back stuff and the deadlines? The loan is not going to fund unless you fax back, so you a some power and you should NOT have discussed your faxing back times.

The HuD speaks for themselves, loans are not funded from HELOC agreements, and it's obvious from your description that two loans were needed and the funds from the heloc were going to a shortage from the first. I would have said that to the borrower.

I am concerned about your comment: "quite creative", that is not our business and we should not have opinions about it. I am not implying you said quite creative to the borrower, but you are on a public message board and your commentary could be misread.

I would have given them the number to the title company so they could call them first thing in the morning and tell them that loan is not to fund until they spoke to the LO.

Reply by BetsyMI on 6/29/07 10:17am
Msg #197734

Julie, you sound like the nuns I had in high school...LOL. I think I handled the closing better than you are assuming. I may not have been in this business as long as you have, but I know how to handle a closing.

I appreciate your comments however, and I did tell them to call the Title Company and the Loan Officer in the morning. In addition, I called the Title Company myself to address my concerns. But I WAS

And no, I didn't say 'quite creative' to the borrowers. As far as being on a message board, I believe my scenario was in quite general terms so I'm not quite sure what your comment was insinuating.

Reply by BetsyMI on 6/29/07 10:18am
Msg #197735

Meant to finish my sentence with..."But I WAS instructed to fax the HUDs back that night by the entity that hired me, so that's what I did."

Reply by sandi42 on 6/29/07 4:56pm
Msg #197824

Betsy, I certainly wouldn't let Julie (know it all) bother you. You do what you think is right.

Reply by sue_pa on 6/29/07 11:40am
Msg #197749

I would never tell borrowers they don't have a RTC - I don't tell them other things they don't have that others do such as a no closing cost loan, no ppp, no balloon, etc. If specifically asked, which I truly don't think most borrowers would do, I would say I don't see a document giving the 3 days. I also would never make any kind of side agreement with the borrowers about not faxing until later - my job is to get the paperwork signed. They can either sign or not and I do what my client tells me to do.

However, we all agree it's rotten when no one is available to answer questions after hours, especially on loans without a RTC - but that's the borrower's problem for scheduling it then, not yours.