Posted by LC/AZ on 5/22/07 4:17pm
Msg #191380

85 Year old worried about 30 year loan

So I go to the signing last night, ring the doorbell several times. Finally a little old man comes to door. We get seated and start to sign. Show him the HUD-1 and he says, "They didn't tell me there were charges to get the loan!" "I'm not paying for that.!" Wants, then, to see the TLI. Show it to him and he says, "I'm only getting a five year loan." "No, sir," I say, "It's a 30 year loan." He looks at it and says,"This really upsets me that at the end of this loan, I'll will have paid $XXX,000!" I chuckled to myself thinking, "Are you sure you're going to be around for the life of this loan?" Suddenly, he started getting disoriented and not making much sense. My gut feeling, remembering the "awareness" rule for notaries, was not to proceed with this. I suggested he call his loan officer. He did and, after doing so, the LO wanted to speak with me. He concurred that there was an "awareness" problem and that he would talk to the gentleman tomorrow, when he had the figures in front of him. But for my part, I halted the signing. Now, I just hope and pray that someone else doesn't come back and sign this sweet little old man. He hasn't a clue as to what he is doing and signing.

Reply by LC/AZ on 5/22/07 5:03pm
Msg #191389

Oops. That's TIL.

Reply by ck_KY on 5/22/07 5:12pm
Msg #191390

That sounds like one I had last week. It was a RESPA signing for an 86 year old man. (Also 30 year loan). His 1003 had four pages attached of credit cards that he was paying off, all of which his grown children and grandchildren had charged up on him. Some of them were Layne Bryant, Blair, Fingerhut, etc. stuff I know he didn't use. I felt so sorry for him, he could barely walk, he was on a cane. The grass in his front yard was almost up to my waist. I thought to myself, where are those kids and grandkids that charged his credit cards up. At least they could mow his lawn!

Reply by Stamper_WI on 5/22/07 7:49pm
Msg #191443

I had one about a year ago. The property was actually in CA and she was here visiting realtives. The signing was in a 5 and Dime in the town Gasoline Alley was modeled after. This loan involved taking the property out of a trust and putting it back in.
She basically had a huge payment at the end of 30 yrs. She got on the phone with her LO and stopped all the browsing shoppers with one loud question.

"HOW THE HE%$ AM I GOING TO COME UP WITH $110,000 WHEN I AM 105?"

She didn't sign the loan

Reply by MistarellaFL on 5/22/07 7:53pm
Msg #191445

Why oh why?

Aren't these LO's suggesting reverse mortgages to these souls?

Reply by jojo_MN on 5/22/07 9:01pm
Msg #191475

Actually, that's a very intelligent move. Maybe the borrower had insurance that covers the cost of her house. She lives in the house with small payments. Then she has more money to live on. Otherwise she would have very high payments and basically would be stuck in her house living on hotdogs and boxed macaroni and cheese. The lender figures they will either get the house, or a payoff sometime in the future.

Reply by Stamper_WI on 5/22/07 9:35pm
Msg #191480

Not to mention the tax benefits. My impression was that she really didn't need the money. She had to have some reason for wanting the cash on hand.