Posted by Maranga Ink Resources on 11/5/08 9:07am
Msg #269048

Borrower doesnt want to sign few forms

I had this case, the borrower had read from top to bottom each page on this package of about 130 pages.
After reading thorougly, she signed when agreed with the form.
There were few forms that according to her were not related to her loan, so I suggested to enter a note on the signature line.
I sent the package back to the TC.
And TC was not exactely happy with that.
Should I force or induce the borrower to sign forms that really not pertain to the property?
Kindly I need your advise on this. Thank you all.

Reply by MW/VA on 11/5/08 9:13am
Msg #269050

"so I suggested to enter a note on the signature line"--UPL.
If there is a problem, call the TC. I usually handle this by explaining that the loan packages
are drawn with standard forms, sometimes they don't apply--we sign everything, attach sticky notes if necessary, and let it up the to TC to decide what they need to close the loan.
Remember, the paperwork is required for the loan to fund--period!

Reply by PAW on 11/5/08 9:42am
Msg #269052

What forms? If a borrower/homeowner refuses to sign, call someone (title closer, loan officer, somebody) from the table. Do not have the signer simply write a note (may be construed as UPL) and continue on as if nothing happened.

There are lots of docs in a package that don't pertain to the property, per se.

Reply by 101livescan on 11/5/08 9:53am
Msg #269055

I've only had a few borrowers attempt to refuse to sign some forms. My response is: Do you really want to take the risk of your loan not funding by not signing these? It will take your loan out of line for closing and funding and perhaps risk your locked rate.

Up to you, sweetheart! They usually sign as they groan and whine. It's our job as LSA to make sure they sign ALL THE DOCUMENTS, not just the ones they want to . The documents are the bank's documents, not the borrowers. Guess who has all the power, not the borrower for sure.

Reply by MSFlorida on 11/5/08 10:23am
Msg #269061

I had the same thing happen last week. I was conducting a purchase closing when we came upon a doc stating to send all tax bills to the bank for payment. However it was clear in the package that the borrower was not escrowing taxes and insurance. I called Title I called hiring SS and we called LO. We had to leave messages for all three. We continued on with closing and never received a call back. We tried again still no one to answer the borrower's question why he had to sign. He was hesitaint but signed anyway stating he would just go to the local bank and ask someone there. Two hours after closing I received a call back from Title stating no need for him to sign. I thought to myself what did you think I was going to wait two hours for a reply. I just hate when questions like this come about but there is no one to answer exspecially when they know what time the closing will be taking place. I do know that I cannot twist their arm to sign something that they are not willing to sign no matter how many times you stress to them that the loan may not fund. So what would you have done if this was the case again no one to answer question and he still didn't want to sign? My thoughts would be to send package back with a sticky note on the doc stating Borrower refused to sign and let title and lo deal with it.

Reply by dickb/wi on 11/5/08 12:14pm
Msg #269079

in this case we just return them unsigned..never a problem.. n/m

Reply by dickb/wi on 11/5/08 12:11pm
Msg #269078

it's called the golden rule.......


"he who has the gold, makes the rule"......i tell that to a lot of borrowers, they chuckle, and sign................

Reply by Bob_Chicago on 11/5/08 1:03pm
Msg #269085

That is what I usually do also. Had one yesterday

with a 4506-T in pkg
Bwr balked. We called lender and L/O checked
and said not reqd for this loan. Bwr wrote that on form with her name
and phone # . Put it on top of pkg and e-mailed info to TC.
As usual, good idea to CYA

Reply by Lee/AR on 11/5/08 9:58am
Msg #269058

While I do have them sign all the forms included in a package, I also think the inclusion of non-applicable forms makes the Lender look...well...bad. "Close my HELOC" form when there isn't one; Affidavit of non-borrowing spouse when the B is single... that kind of thing. The most-asked question I get about these non-applicable forms is a mostly rhetorical 'are they crazy?' Guess it's just easier to toss 'em all in the package than run the risk of missing one that is needed.

Reply by enotary/va on 11/5/08 10:11am
Msg #269059

Lee/AR = I agree with you.......

Reply by GA/Atty on 11/5/08 10:21am
Msg #269060

I always tell them they don't have to sign anything that

doesn't apply to their situation, but I also inform them that (1) it might cause problems getting their loan funded and (2) signing the documents in question doesn't do any real harm.

Reply by Claudine Osborne on 11/5/08 10:55am
Msg #269066

Re: I have them fill out..

Instead of a sticky note that may get lost I offer the bos a "Notice of Borrowers Refusal to Sign" form . The bos can explain in their own words why they are not signing this particular form, there is a signature line for them as well. I attach it to the form in question.

Reply by CaliNotary on 11/5/08 11:23am
Msg #269071

I tell them that they don't get to choose which forms they are willing to sign, that it's an all or nothing deal and that we'll have to stop the signing if there are pages they don't want to sign. If it's during business hours I'll tell them to call the TC or I'll ask them if they have a cell number for their broker.

If it's something that doesn't apply to their loan I simply tell them that since the lender included it in the package they want it signed. The only exception is the automatic payment form, if they don't want to set that up I tell them to put N/A on the signature line and that's never caused any problems.

Reply by LOVETEAM on 11/5/08 1:07pm
Msg #269086

Call the mortgage broker and/or the title company. Remind the borrower they have 3 days to review the docs, and you are there to witness their signature, not them reading. If they insist, leave the docs, tell them not to sign anything until you come back in about 3 hours. You'll find they will sign, and review during the 3 days RTC. Don't sit their, you don't make that much to take that type of abuse.

Reply by Linda_H/FL on 11/5/08 1:25pm
Msg #269089

I disagree in part

I do not leave unsigned documents with the borrowers - if they're refusing to sign and I have to leave the docs go with me.