Posted by Linda derogatis on 3/29/07 9:16am
Msg #182563

More than just a refi//forclosure

Good Morning everyone! Always look forward to reading all posts on Not Rot. I do have a question this morning though. Took a job last evening from a SS and of course they don't know anything about the docs or lender. Turns out docs out of Maryland, always wordy, lenghty, and it's a foreclosure. One of the stips is a copy of my E&O ins. to be included with pkg. I'm not too crazy about that so I called title and was told "they just like to have it on file just in case." Asked if it would hold up funding which it will not so I said I would not be sending it, they were Okay with that. My question is would anyone else on this board (whoever replies) have a problem with sending that? Also, these poor people are waving their RtC. Oy Vey (sp?) Thanks guys, Linda

Reply by Stoli on 3/29/07 9:27am
Msg #182564

I don't think a borrower can waive the RTC in CA, Right? n/m

Reply by Linda derogatis on 3/29/07 9:29am
Msg #182566

Re: I don't think a borrower can waive the RTC in CA, Right?

They are signing RtC and also waiving them with another form in pkg.

Reply by Becca_FL on 3/29/07 10:14am
Msg #182591

It sounds more like a Foreclosure buyout to me.

I've done foreclosure buyouts where the borrowers have declined their RTC to save their home. This is an acceptable practice, but must be done according to the RESPA laws. There are three (I think) situations whereby a borrower can decline the RTC, one of which includes saving the primary residence from foreclosure. The letter declining the RTC MUST be hand written and signed by the borrowers.

Reply by PAW on 3/29/07 10:34am
Msg #182605

Not RESPA (Title 24), but Reg Z (Title 12) n/m

Reply by PAW on 3/29/07 10:44am
Msg #182615

Title 12 - Part 226 -

(e) Consumer's waiver of right to rescind.

(1) The consumer may modify or waive the right to rescind if the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency. To modify or waive the right, the consumer shall give the creditor a dated written statement that describes the emergency, specifically modifies or waives the right to rescind, and bears the signature of all the consumers entitled to rescind. Printed forms for this purpose are prohibited, except as provided in paragraph (e)(2) of this section.

(2) The need of the consumer to obtain funds immediately shall be regarded as a bona fide personal financial emergency provided that the dwelling securing the extension of credit is located in an area declared during June through September 1993, pursuant to 42 U.S.C. 5170, to be a major disaster area because of severe storms and flooding in the Midwest.\36a\ In this instance, creditors may use printed forms for the consumer to waive the right to rescind. This exemption to paragraph (e)(1) of this section shall expire one year from the date an area was declared a major disaster.

(3) The consumer's need to obtain funds immediately shall be regarded as a bona fide personal financial emergency provided that the dwelling securing the extension of credit is located in an area declared during June through September 1994 to be a major disaster area, pursuant to 42 U.S.C. 5170, because of severe storms and flooding in the South.\36b\ In this instance, creditors may use printed forms for the consumer to waive the right to rescind. This exemption to paragraph (e)(1) of this section shall expire one year from the date an area was declared a major disaster.

(4) The consumer's need to obtain funds immediately shall be regarded as a bona fide personal financial emergency provided that the dwelling securing the extension of credit is located in an area declared during October 1994 to be a major disaster area, pursuant to 42 U.S.C. 5170, because of severe storms and flooding in Texas.\36c\ In this instance, creditors may use printed forms for the consumer to waive the right to rescind. This exemption to paragraph (e)(1) of this section shall expire one year from the date an area was declared a major disaster.

Reply by Becca_FL on 3/29/07 10:50am
Msg #182618

Got it and for others here's a link

http://www.bankersonline.com/regs/226/226.html

Reply by PAW on 3/29/07 10:22am
Msg #182593

Right to Rescind is federal, not state law

Title 12 (Reg Z) outlines specifically when the right to rescind can be waived.

Reply by Linda derogatis on 3/29/07 10:25am
Msg #182594

Re: Right to Rescind is federal, not state law

Hey PAW! Great to hear from you! I'm going to cover just about everything on this one! and also, Mr. titles Ph# AAGGGG!

Reply by NCLisa on 3/29/07 9:28am
Msg #182565

Stopping a foreclosure is a great reason to waive your RTC. In fact it is one of the best. Just because you are refinancing, the forclosing entity doesn't care and is not required to stop or delay the sale on the courthouse stairs. The reason they would be waiving the RTC is the sale is most likely scheduled for tomorrow.

The reason you have E&O insurance is to work with TC's and SS's. Fax it over to them. I may not include mine in the closing package, but every time mine renews, I fax the new policy to all the companies I currently work with.

Reply by Linda derogatis on 3/29/07 9:32am
Msg #182567

You are right it is going for tax sale tomorrow. What a shame. I do feel for these people. And I always do the same for the companyies SS, Title, etc. that I work for. But never in the pkg of the loan docs! If I'm missing something, it's on their end and furthermore this pkg is 143 pgs. I don' t think they missed a trick!

Reply by ME/NJ on 3/29/07 9:43am
Msg #182572

Be very careful

One issue, mistake or delay will cost them there home. Thats why they want a copy of your E&O.

Reply by Linda derogatis on 3/29/07 9:44am
Msg #182573

Re: Be very careful

Yeah, I know. I really hate these!

Reply by Happy_in_Fl on 3/29/07 10:10am
Msg #182589

Re: Be very careful

Your kinda' between a rock and a hard spot, so to say, hey?

What I'm thinking now, is really bad practice, and not recommended at all, and others may have a better solution, but the only one coming to my mind is;

For this one, maybe a good idea, to cover your back a little, and before sending the return package, spend a little time and money, and run a copy of what your returning, in case you take a hit on E &O- May be a risky situation doing that, but if it came down to "he said - you did; and I said- I did"; well then you can look and see quite readily what they are talking about.

Of course immediately after it is said and done, you will need to shred what you copied.

Other then that, check the package for your Venue Completions, especially careful, three or four times, before sending docs back.

LOL

Reply by PAW on 3/29/07 10:26am
Msg #182596

Re: Be very careful

And chances are it wouldn't be a "notary" mistake. And Notary E&O Insurance only covers notary errors and omissions. Signing Agent errors and delays would not be covered by your notary E&O, in my opinion. <insert standard non-lawyer disclaimer>

Reply by Linda derogatis on 3/29/07 10:28am
Msg #182598

Re: Be very careful

Fortunately for me, I am extremely careful, unfortunately for to Bor., they will probably forclose sometime in the near future.

Reply by Glenn Strickler on 3/29/07 10:35am
Msg #182606

Re: Be very careful

PAW brought up a subject that never seems to be discussed. E&O insurance only covers notary errors. It does not cover things like maybe someone breaking into your car and stealing the documents and delaying the loan that way or other such hazards. Under advice from my attorney, I purchased a rider on my home owners insurance that has blanket coverage for most of the mistakes in life that I can make that can put my personal assets at risk that aren't covered by other insurance, such as auto and standard homeowners. and it really is inexpensive compared to the coverage you can buy .....


I am not an attorney and this is not legal advice, JMHO ....

Reply by Linda derogatis on 3/29/07 10:42am
Msg #182610

Re: Be very careful

I tried that, with no luck. Also when I worked in a police station, could not get any riders personally.

Reply by Glenn Strickler on 3/29/07 10:53am
Msg #182620

Really??

Maybe the laws that cover insurance is different in your state, but I have had no problem here. Or maybe you have the wrong insurance company. I am with the good hands people and it was no problem some years back when I added it (this statement does not provide an endorsement of an insurance company) Their policy included 100k of coverage and for a modest increase, I was able to increase it substantially.

Reply by Dennis D Broadbooks on 3/29/07 1:30pm
Msg #182657

Glenn...

...I don't want to be an alarmist, but you really need to check what's actually covered by this "rider" to your homeowners insurance policy. If you're referencing an umbrella policy (AND my comments are without the benefit of seeing the language of your policy), normally that type of coverage is NOT going to pay for a non-Notary related mistake you may make in a loan signing or someone stealing the documents with either one resulting in a suit against you for damages. You need to purchase a separate professional E&O (Errors & Omissions) policy which is designed for the types of services a signing agent provides. That type of policy is not inexpensive.

This is not to be construed as insurance advice. Call the agent you purchased this rider from & ask for a more detailed explanation as to what is or is not covered. You may be surprised at the answer.

Reply by Glenn Strickler on 3/29/07 2:03pm
Msg #182668

Thanks Dennis

Well, my agent is a close relative, and so is my attorney but it never hurts to ask those questions again to be sure ......

Reply by Dennis D Broadbooks on 3/29/07 2:10pm
Msg #182670

No It Doesn't Hurt to Ask...

...& the key question is whether this "rider" covers an error or omission on your part. I'd be very interested in hearing the final outcome on this. Thanks for not taking my comments in a preachy fashion. My intent is to make sure you have the coverage you think you have.

Reply by Becca_FL on 3/29/07 10:26am
Msg #182597

Re: Be very careful

I agree with ME/NJ. The reason why they want a copy of your E&O is to quickly file a claim if you screw up anything that may delay funding and cause the borrower to lose their home.

Reply by Linda derogatis on 3/29/07 10:29am
Msg #182599

Re: Be very careful

That is EXACTLY what I was thinking! I am getting edgy on this one!

Reply by Becca_FL on 3/29/07 10:32am
Msg #182602

Why?

Just do your job, check your work and get the package back to the TC. Nothing different here.

Reply by marlindog on 3/29/07 10:40am
Msg #182608

I agree with Becca .........that is a hardship loan...anyone

found in that situaion as a borrower would gladly consider waivng the the rtc this is business as usual

Reply by Linda derogatis on 3/29/07 10:44am
Msg #182613

Re: I agree with Becca .........that is a hardship loan...anyone

Everyone!! Thank you so very much for all input and support! Here I go! I'll let you know how it went. The best to everyone! Linda

Reply by marlindog on 3/29/07 11:11am
Msg #182626

EXAMPLE of the GREAT responsability that should be .........

considered when you get any phone call for any signing. That right there is one of the reasons why you cant work for peanuts

Reply by Lee/AR on 3/29/07 2:13pm
Msg #182671

Re: EXAMPLE of the GREAT responsability that should be .........

Liability, too. So rush right out & get $500k worth of E&O (which only covers Notary errors) so you can be ready with a BIG TARGET on your back when the 'deep pockets' hunt begins. Nah, nah, naaaa. Don't do it.