Reply by sue_pa on 3/17/08 10:36am
Msg #239534
Every commercial loan is different. Some are easy as can be. Some are HUNDREDS of pages. Some are SBA backed with their forms. Many require the borrowers to sign individually and again on behalf of their business. A 'signing agent' will never understand the nuts and bolts of these loans because they usually are complex. I did one a few months ago and I believe they told me it had been 18 months in the works. It was a franchised hotel getting a new mortgage for an addition. There were several LLCs in several states pledging assets for the new project. When I saw the paperwork, I was absolutely terrified and I've been in this business a long, long time - I couldn't figure out why we were going to sign these kinds of docs for MILLIONS of dollars in a little motel lobby rather than at a lawyer's office. Turns out it was easy as could be because other partners had signed at the attorney's office earlier in the day in Chicago and my guys were happy to sign where I pointed. Upside of these is that the borrowers generally know EXACTLY what they're doing and there are seldom problems with the terms. The other side of that is a commercial purchase ...
|
Reply by BytheX/MO/KS on 3/17/08 11:02am
Msg #239536
There is not a very big market for most commercial loans to be closed outside of an attorney's office or title company. The good thing about doing them is that they have usually been in the works for sometimes years and there are usually no suprises. However, they have to be signed by multiple entities, as various positions on the same documents. It is not like a refi you can just print out and run out the door with. Also, because of the amounts usually related to these type of transactions, most people would not qualify to close these loans because your usual E&O insurance amount would not be nearly enough to cover the transaction should you mess it up. Most of them will want you to carry a policy of a million and up to be able to even list you. Sometimes in a pinch, like where someone is away and they just need to get it done, they will use an outside entity, but that is not the norm these days. Title companies fight very hard to maintain their commercial clients, they usually will do the transaction over a NICE NICE dinner and drinks....wink wink.... This is not something they are going to let anyone in the middle of, they make ALOT of money on the policy so they will not let anyone in unless they have no other option. You might steal them away, or so they think.... If they like you, and you like another title company better...and so on and so on.....
Also, the ones that are done at an attorney office is usually closed by the attorney and his secretary will stamp everything after they are done.
I know this because I worked for a title company, I used to close for a professional football team, among other commercial customers, man do I miss those club level game tickets and suites.... sniff sniff...
|
