Posted by DellaCa on 8/25/08 11:38am
Msg #261665

Servicing Agreement

The work I have done in the past for Financial Freedom on their RM ,I was getting payed through Lenders First Choice. In their package they had a Servicing Agreement the borrower had to sign,it was stating if the notary did not get paid they would pay them out of pocket.
Does anyone have a copy of this agreement?The ones I did was were I would meet the LO at the borrowers home and LO would conduct signing I would just do my thing.So I do not have a copy I am going to ask my last borrower to pay as to the contract they signed.But I think it would be better to at least have a copy of this contract LO is of no help on the matter.

Reply by Calnotary on 8/25/08 11:45am
Msg #261668

Those forms refers to in case the borrower does cancel or something, in your case I think LFC got paid and the borrower paid the notary services thru his/her funds in the HUD. So are you asking the borrower to pay you even though he/she paid that already?

Reply by kflorida on 8/25/08 11:48am
Msg #261669

I don't remember if I ever saw one..but something to think about....the borrower is not responsible for what LFC did...I personally wouldn't contact the borrower. If you left the borrower with a good impression it could be business down the road...I have gone back to numerous borrowers who flipped there loan more then once. LFC owes me money to but i wouldn't bother the borrowers....anyone have any ideas if they filed bankruptcy etc or how to get any monies owed back...

Reply by DellaCa on 8/25/08 12:00pm
Msg #261673

I do understand what you are saying but this servicing Agreement states they will pay the notary for any reason they are not getting paid,this borrower knew exactly what she was signing.
This will be used in the last resort. I have never went to a borrower for my fee the LO should step up and make it right he was paid I should be also.

Reply by BrendaTx on 8/25/08 12:10pm
Msg #261676

Re: Servicing Agreement - jmho

Della - I am not arguing with you or anyone for using this approach, however, it has always seemed to me that the form for LFC and FF is wrong for the notary to have it signed by the borrower.

It becomes proof that if the deal doesn't go through the notary stands to lose money giving the notary a position of financial interest.

I will ponder this from several angles to try and get a good feel for the way my position should be but this form has always bothered me.

Truth is...I would NOT ask the people to sign it...I felt it was wrong...it was pushing them to sign up the loan--they'd have expenses to pay if they didn't...and folks to many of my old folks signing these loans they COULD NOT pay my fee AND eat every day that month if their loan didn't go through.

I would tell them what it was and told them if their loan wasn't funded that I would make the title company pay me...not them. Whether I could have or not remains to be seen, but I never felt good about that form and did NOT want the elderly to pay me.

Maybe Keith has some insight on whether or not it put notaries into a bad position to sign it.

Reply by DellaCa on 8/25/08 12:30pm
Msg #261680

Re: Servicing Agreement - jmho

Hi Brenda
I did not tell them anything the LO did and maybe this was a form they FF has them sign I don't know,I am at the table to as a notary only the LO presents and explains these signings.In my opinion it will give me leverage that the Lo may pay me,we will see. If it were up to me on the agreement I would not have signed one.
I have had signings from other companies that they had the choose to sign an agreement but this was not one of them.

Reply by BrendaTx on 8/25/08 12:44pm
Msg #261683

Re: Servicing Agreement - interesting, Della...

It just goes to show you that all experiences are different...

Except for only once, the LOs have always wanted me to do the talking and they took a back seat and jumped in only for answering questions.

In fact, one LO (during a FF appointment) said, "What?? No way these guys are going to sign this...I'll pay the notary out of my own pocket...don't worry about that." That was totally fine with me as the odds of a rescinded loan are few and far between on RMs...but now LFC has stiffed the multitudes.

The Saturday before all this came down I had a call from LFC...I negotiated a $225.00 price without resistance for local appointment and printing edocs...hmmmm, that was awfully easy...then I realized...omg, this is LFC which was bouncing checks. I decided nope...and I declined based on the bounced check I read about here on NR. I knew in my heart that this meant something very serious when the check bounced. The following Monday...I think it was...the ax fell.

Reply by Negrete on 8/25/08 11:57am
Msg #261672

Re: Servicing Agreement ( Form Sent Della )

I sent the form that I would have signed with all of the LFC closing I did Della.
Not sure that it will do any good, but it never hurts to try.

Anthony J Negrete

Reply by MW/VA on 8/25/08 12:04pm
Msg #261674

Agreement or not, I would contact the LO first about the payment issue. Due to the sensitive nature of RM's, I would not go to the borrower for payment on the LFC thing. This is only my opinion, but will probably hurt you for future business.

Reply by Negrete on 8/25/08 12:08pm
Msg #261675

What future busniess, LFC is gone out of busniess.

Reply by MW/VA on 8/25/08 12:19pm
Msg #261678

Future business from the LO's--these RM's are just being handled by other tc's.
It is unfortunate, but no one saw the closing of the Mercury Companies coming.
I was fortunate enough to be paid, but have lost some business temporarily because it was shifted to ServiceLink, who won't honor requests for specific notaries (my arrangement with the LO's). I have been assured that it will all work out after the dust settles.

Reply by Lee/AR on 8/25/08 12:11pm
Msg #261677

Things to think about before leaping...

1. If this funded, B has paid for your service.
2. Bigger issue--the form they signed did NOT have a dollar amount and, lacking that, there is no 'contract' between you & them.
3. I've been told I'd get laughed out of court & be lucky if the B didn't countersue me if I tried to collect on that little piece of paper.
4. Apparently, you do not even HAVE that little piece of paper SIGNED by the people you're claiming owe you.
Re-think this, please. And talk to the LO & find out where this deal went

Reply by DellaCa on 8/25/08 12:33pm
Msg #261681

Re: Things to think about before leaping...

Lee the deal funded and LO was paid, possible that this is a different form than you have. I will be getting a copy someway.

Reply by Les_CO on 8/25/08 12:37pm
Msg #261682

Re: Things to think about before leaping...

I think Lee's got it nailed. Could cause you MUCH more grief than it would be worth.
And after you check all those things, and include your letter asking LFC to be paid. What would you get? The statutory fee for notarizations? You said the LO did the "closing." Seems like a LOT of work and trouble for a few bucks. JMO.

Reply by Lee/AR on 8/25/08 12:53pm
Msg #261685

Re: Things to think about before leaping... Kevin????

FWIW: I did have one where the Bs signed this form & then rescinded. When I called TC (wasn't LFC) for payment, they blew me off by referring to this form. Checked with my att'y--who told me "you'll get laughed out of court & possibly countersued"--which I then very politely told the TC---who then paid me. Ever since, I have had Bs write 'Refused' near that part of the doc & initial & date it. That method has NEVER been a problem with any TC, including LFC. Of course, I've not had one rescind since then, either. Plus, the TC on the rescinded one gave me the lame excuse about that form... oopsie...that's a CA form--shouldn't have been in the package. Yet, every package since has contained it. It's a weasel clause: If you & the Bs buy it---well, TC has saved some money.

Reply by BrendaTx on 8/25/08 1:42pm
Msg #261698

Re: Things to think about before leaping... Kevin????

**Checked with my att'y--who told me "you'll get laughed out of court & possibly countersued"--**

See...that's what I think...the counter-suit is the thing I don't want...there can be no counter-suit without a suit. Not worth it, it's unenforceable, and I just felt like it shifted the dynamics of the notary's position in the signing from neutral to a liability. Appraisers and/or surveyors might get by with that, but I feel notaries cannot.

Reply by MikeC/NY on 8/25/08 4:07pm
Msg #261715

"So I do not have a copy I am going to ask my last borrower to pay as to the contract they signed."

And if they deny ever signing it? I'm not an attorney, but my guess is that without a copy of the signed agreement, you have nothing to work with.

I'm also not a fan for going after the borrowers, especially in a case like this. They already paid the notary fee, and it's not their fault that you got stiffed - why should they have to pay a second time?

This is all just personal opinion; if it works for you, by all means go for it.

Reply by Ernest__CT on 8/26/08 1:31pm
Msg #261859

Wite it off and move on. Sorry! n/m