Posted by MonicaFL on 7/9/09 8:15am
Msg #295107

Retainer Agreements

I had a call yesterday by a company wanting me to go out and get a retainer agreement signed. I was told that after it is signed, I needed to fax the whole package (only about 11 pages) back to them and then destroy the originals. Destroy the originals?!!!!! I have never heard of that. In any event, I didn't take the assignment because they wouldn't accept my fee saying: Well, its only 11 pages and it won't take that long to fax it back or scan it and send an e-mail. I said, well what about my time and where I have to go for this transaction? well, will you take XX for it? I stated no, they had better find someone else. I didn't like the sound of this from the git-go when they told me to destroy the originals. Just venting. Thank you for listening.

Reply by BrendaTx on 7/9/09 8:23am
Msg #295113

* I didn't like the sound of this from the git-go when they told me to destroy the originals. *

If you sent it to them they could destroy it.

I would not have a problem with that.

Reply by MonicaFL on 7/9/09 8:46am
Msg #295117

I guess my thinking stems from working for attorneys for 35 years and their "philosophy" was - having originals is always the best defense in case of a dispute.

Reply by Yowheelz on 7/9/09 8:47am
Msg #295118

You sure this wasn't a 11 page Loan Mod App?

I had a similar call for a loan app., get the borrower to sign everything, fax back and destroy originals. There were no notarized pages. I don't remember the company but they said there was nothing to send back. It didn't go, borrowers cancelled, but I think they then get the originals signed at closing.

Reply by MonicaFL on 7/9/09 8:53am
Msg #295119

Re: You sure this wasn't a 11 page Loan Mod App?

they were very specific in stating it was definitely a retainer agreement. I asked them twice about that.

Reply by Lee/AR on 7/9/09 11:24am
Msg #295152

A 'retainer agreement' MAY be a Loan Mod Appl.

And probably is/was. They're probably onto us and have simply changed the words so we'll accept the job.
It is a puzzlement as to why they want the originals destroyed and not left with the signer.
Except that, the one LM Appl. (which they call an 'agreement') that I actually completed had big bold instructions saying "Do not give copies of any doc to the signer". If it walks, quacks like a duck....

Reply by Linda_H/FL on 7/9/09 11:42am
Msg #295157

I agree, Lee

I got a call a few days ago for a "Loan Modification" - I asked and was told "yes, it's the final modification"...got the paperwork and it was a Retainer Agreement with the Mod Application - homeowners had already been sent packet and filled everything out but had messed up a few pages - I was replacing those pages they messed up...one notarization for POA and pick up $3,000 payable to attorney...

I initially accepted until I saw the documents...I'm not comfortable picking checks up here so I turned the assignment back...after discussing with someone I trust I probably could have done it since there was an attorney retainer agreement but I'm just not comfortable.

What they should do is send the entire package directly to the homeowner (as this company initially did) with explicit instructions to fill out, sign, find a notary for the POA (which they can probably get done at their bank), then give them return shipping info to send the completed docs and check themselves....cheaper in the long run (here $10 for notarization plus a small travel fee)...and takes the notary/sa out of the loop as far as involvement in the application process.

MHO

Reply by PAW on 7/9/09 12:50pm
Msg #295172

I agree, Linda

Especially with your last paragraph:

>>>
What they should do is send the entire package directly to the homeowner (as this company initially did) with explicit instructions to fill out, sign, find a notary for the POA (which they can probably get done at their bank), then give them return shipping info to send the completed docs and check themselves....cheaper in the long run (here $10 for notarization plus a small travel fee)...and takes the notary/sa out of the loop as far as involvement in the application process.
<<<

Reply by LKT/CA on 7/9/09 1:13pm
Msg #295183

Re: I agree, Lee

<<<I asked and was told "yes, it's the final modification"...got the paperwork and it was a Retainer Agreement with the Mod Application...>>>

Regardless of what they call the job, I make sure to ask (1) Am I notarizing client signature ? (2) Am I collecting a check or checks ? (3) Is the client completing paperwork? That cuts to the chase and reveals the true job. Linda, they lied to you and wasted your time. I completely agree with your last paragraph. What I believe these companies will start doing is lying even further, saying NO there are no checks to collect, yes you'll notarize signatures and nothing for the client to fill out, then when you arrive at the appointment the company will call and say, "Oh, by the way, we need you to collect checks and have borrower fill out paperwork and not notarize anything". Then when you say, "You said I didn't have to collect checks", they'll say, "Well, now you do, and if you don't, we won't pay you for this job".

If these companies haven't already started doing this, they will. They've already lied, calling the loan mod apps "retainer agreements" or anything but what the job truly is - a LOAN MOD APP.

Reply by JanetK_CA on 7/9/09 8:22pm
Msg #295229

A twist on that situation...

A while back I got a call for one of these that was carefully disguised with the initial call. When I got the confirmation with the instructions, I figured out what it was and called right back to cancel. Lo and behold, I ended up getting a check for it the other day. I didn't remember what it was until I called the ss back to find out why they sent me that check, because I didn't have entry in my work logs or my journal to match the borrower name.

Apparently they didn't get it taken out of their system when I canceled. The person they found who did end up doing this is still waiting for their check. (I wonder how much (s)he charged to do that job...) Another reason why we don't get paid on time sometimes?? And the guy at the ss wasn't very appreciative of me sending him his check back. Maybe he just wasn't very appreciative period!

Reply by MW/VA on 7/9/09 10:33am
Msg #295139

That is an odd request. I'd be curious to know what kind of business wouldn't require original signed & notarized docs.

Reply by BrendaTx on 7/9/09 11:00am
Msg #295147

Re: Retainer Agreements - maybe I misinterpreted what

you said, Monica. Were the docs to be notarized?


"curious to know what kind of business wouldn't require original signed & notarized docs."

Reply by CH2inCA on 7/9/09 11:29am
Msg #295153

Re: Retainer Agreements - maybe I misinterpreted what

I was told long ago, and I don't remember by whom that any signed document becomes a legal/binding document. I would hesitate to destroy any original signature, even if I didn't notarize it. I'd say either leave it with the signer or send it to the agency; have them do with it as they please.

Reply by PAW on 7/9/09 12:57pm
Msg #295177

Don't destroy documents

After a discussion this morning with our family attorney, I asked him what should I do with "unused" documents. He told me that anything I generated, including printing of emailed or faxed documents, could be destroyed by me as long as no one has seen them or signed them. But once presented, the document(s) would need to be given to my client or their representative. In the case of loan documents, my "client" would be the lender or title company or whomever provided the documents.

Reply by Shoshana Roller on 7/9/09 2:16pm
Msg #295192

Re: Don't destroy documents

When you have a set of partially signed docs, it has been my experience that the title co or whomever, does not want them back. They just want you to shred them.

Reply by mwm143 on 7/9/09 2:38pm
Msg #295195

Sounds like a fancy word for Loan Mod Application to me. Besides any company will appear more credible and trusting if there is a warm body who happens to live a couple miles down the road representing them. The only legitimate purposes of faxing and destroying the documents are (1) save cost in overnight fees, and (2) far less chance of tracking the physical location of the company.