Posted by Rachel/ORWA on 2/16/08 5:46pm
Msg #235624

Need help finding this in Search.

I'm wondering what others have done when confronted with a document stating that the Borrower will pay the notary fee if the loan doesn't fund or if they rescind, which then needs to be notarized.

I know this has been discussed before, but can't seem to come up with the proper search terms.

Thanks!

Reply by ZeeCA on 2/16/08 5:55pm
Msg #235625

Jmo... UNLESS the BO has signed something to that I cannot see how they would be responsible as they are not the ones that contracted our services....

not a lawyer.. blah blah blah.................

this will def be an interesting thread.......

Reply by Elaine Sedlock on 2/16/08 6:23pm
Msg #235627

Another SA I know told me about a doc in a closing package that required the bo to sign an agreement stating that they would do this. I don't know what she ended up doing, but wouldn't that give the notary a vested interest in the transaction? I'll be interested in seeing other opinions.

Reply by Rachel/ORWA on 2/16/08 6:40pm
Msg #235628

Just to clarify...

This is a document that came with the package (happened to be a Reverse Mortgage), not one I came up with on my own. I was uncomfortable with it, but I confess I had them sign it and I notarized it. However, the thought of "interested party" went through my head.

I would like to see others' thoughts on this subject, and what you do when confronted with a situation like this.

Reply by WDMD on 2/16/08 6:55pm
Msg #235629

Re: Just to clarify...

"This is a document that came with the package (happened to be a Reverse Mortgage), not one I came up with on my own. I was uncomfortable with it, but I confess I had them sign it and I notarized it. However, the thought of "interested party" went through my head.

I would like to see others' thoughts on this subject, and what you do when confronted with a situation like this."




I also have seen a document like this before. My thoughts are that the document is a CYA document meant to absolve whoever hired you from liability for paying you should the loan not close. Personally I think it will not amount to a hill of beans if the notary should persue payment if the loan does not close. Ultimately it is up to a judge to decide if the document is binding and if it is not.

How it would make you a "interested party" I don't know, if all you do is notarize the borrowers signatures on a document meant to protect the title company or signing service. Just because you notarize the signatures on that document does not make you bound by it's contents.

Reply by Elaine Sedlock on 2/16/08 7:09pm
Msg #235632

Re: Just to clarify...

"Personally I think it will not amount to a hill of beans if the notary should persue payment if the loan does not close. Ultimately it is up to a judge to decide if the document is binding and if it is not.

How it would make you a "interested party" I don't know, if all you do is notarize the borrowers signatures on a document meant to protect the title company or signing service. Just because you notarize the signatures on that document does not make you bound by it's contents."

You're probably right; but wouldn't that depend on whether or not the SA was pursuing the entire closing fee agreed upon between the SA and hiring party or only pursuing the amount legally permitted per notarization by the state in which he/she is commissioned?

Reply by sue_pa on 2/17/08 7:00am
Msg #235678

Re: Just to clarify...

doesn't it really say it will pay the 'signing fee'? If so, where is our direct interest? they'd pay the signing service. Of course, in my case, a CA company would have to sue a PA borrower - just as difficult for them to get the $$$ as it is for us to collect from signing services in other states. I'm 'guessing' most borrowers, unless VERY upset with something, would pay because they generally pay all their bills without asking questions - they'd assume they agreed to it so they'd pay.

Reply by SharonH/OH on 2/16/08 7:30pm
Msg #235633

I have seen a similar document in a Reverse Mortgage, but it does not say that the Borrower will be responsible; only that the Borrower acknowledges that the "Lender" is not responsible. Don't see a conflict of interest there, since I am generally not hired by the Lender, and the Lender is not the party I hold responsible for my fees. Nor is the Borrower, for that matter.

Reply by Rachel/ORWA on 2/16/08 8:01pm
Msg #235634

This was a title doc; exact wording was:

The Principle (Seller/Buyer/Borrower) hereby acknowledges full responsibility for the Signing Service/notary fee (if applicable) should the transaction be cancelled or not closed.

We the (Seller/Buyer/Borrower) hereby release and indemnify ~Title Company~ for any responsibility of payment of Signing Service/notary fee should we cancel this transaction or it not close for any reason.

(Me again: Obviously, I do not release or indemnify the TC, even if the borrower does. If I'd had my wits about me, I think I wouldn't have notarized this form.)

Reply by Laura Vestanen on 2/16/08 8:40pm
Msg #235639

btw -

The Search function on NotRot is a joke. 5 times out of 6 I can't find a post that I know I saw a week ago. Even if I enter the poster name and specific words I remember being in the post.

So you have my sympathy when trying to search for something at NotRot.

LauraV

Reply by Elaine Sedlock on 2/16/08 8:54pm
Msg #235640

Laura, my sentiments exactly! What's up w/that? n/m

Reply by Lee/AR on 2/16/08 11:32pm
Msg #235660

True story

If you've seen/notarized one of these, you know who they are. 1st time, they signed, I notarized, they cancelled & I was not paid. I fussed, explained my opinion of 'contract law' backed up with statutes & whatever I could find. They paid. Shortly thereafter I asked my lawyer about this & he said I'd get laughed out of court trying to collect from a B and the statement in question didn't work for anyone. Since then, after a discussion with the co. about these issues, they told me---and, IMO, this is b.s.-- oh, that's a state-specific thing which doesn't apply to your state--just have B's put a line thru it, write 'refused' and initial. Have done so ever since. Still get jobs; still get paid. Tho', the whole truth is that I've not had one cancel since then.

Reply by Elaine Sedlock on 2/16/08 11:44pm
Msg #235661

Re: True story

"1st time, they signed, I notarized, they cancelled & I was not paid. I fussed, explained my opinion of 'contract law' backed up with statutes & whatever I could find. They paid."

I'm a little confused. Who, exactly, did you fuss with? The SS, TC, Bo . . . ? And who paid? Did you receive the full fee or only a partial fee? Just want to be clear for my own benefit.

Reply by Lee/AR on 2/17/08 12:38am
Msg #235669

Re: True story

You are right. Wasn't clear. Fussed at TC; received full fee.

Reply by Vince/KS on 2/17/08 12:00am
Msg #235664

It's been on here several times, including

thread starting with Brenda's #68790

Reply by Rachel/ORWA on 2/17/08 12:17am
Msg #235666

I read all the way through that thread, but it doesn't

address my question.

I have no intention of trying to collect from the borrower, in any event. I'm just wondering how others have handled this document when confronted with it in a loan package.

I sincerely appreciate the attempt, however, and if you have any other message #s, pass 'em on; I know this document has been discussed before and I really have tried the Search function.

Reply by Vince/KS on 2/17/08 9:04am
Msg #235681

Re: I read all the way through that thread, but it doesn't

Sent you PM.