Posted by Laura Anderson on 8/18/10 9:51am
Msg #349442

Refi quandry!

The last 4 refis I have done the people have to pay at closing.
Most have not seen a HUD muchless been told that they owe at closing.
Its not fair that we the notaries have to relay the bad information.
Is there any way to resolve this and why arent the mortgage loan officers relaying this information to these people?
The people end up getting mad at me thinking I am with the loan company.
Any suggestions?

Reply by MistarellaFL on 8/18/10 10:11am
Msg #349445

Been happening for years

The only suggestion I have, is when calling the brw to confirm, to advise them you will need a bank check for $X.
Sometimes I confirm with the LO, and ask the LO if the brw is prepared for bringing funds to the table.
I also make sure the brw knows that I am an IC working for the TC (or other entity).

Reply by Tish/CA on 8/18/10 12:17pm
Msg #349468

Re: Been happening for years

I like that idea of contacting the LO. The LO is the person that should communicating that kind of information with THEIR client, not us. I'm assuming you find that info on the 1003?

Reply by Nina Thomas on 8/18/10 10:24am
Msg #349447

Before I print the docs I check the HUD to see if there is any amount due. If so, i call the borrower and let them know the amount so they are prepared and if they have any questions I advise them to contact the loan officer prior to the close. Based on their response, I either print the docs or wait for the fallout to settle. This has saved me many a trip and tons of paper and ink.

Reply by Ilene C. Seidel on 8/18/10 11:29am
Msg #349455

I do the same as Nina. Cover your bases before printing and wasting your time driving to a closing when it has a potential of falling thru.

Reply by parkerc/ME on 8/18/10 3:24pm
Msg #349502

I do essentially the same. Since I don't have docs yet when I call to confirm appointment, I ask BO if they know whether they're supposed to have any funds at the table. They usually know if they need to provide funds, but often get "everything's supposed to be rolled into the loan, if you see anything different when you get the docs, please call me" from them.

Reply by James Dawson on 8/18/10 11:02am
Msg #349452

The borrower is entitled to see these in advance although most don't know it. Saavy borrowers do and will often already have that Doc when you arrive.

This is part of the information ....under Title 24 sec 3500

§ 3500.10 One-day advance inspection of HUD–1 or HUD–1A settlement
statement; delivery; recordkeeping.
(a) Inspection one day prior to settlement upon request by the borrower. The
settlement agent shall permit the borrower to inspect the HUD–1 or HUD–1A
settlement statement, completed to set forth those items that are known to
the settlement agent at the time of inspection, during the business day immediately
preceding settlement. Items related only to the seller’s transaction may be omitted from the HUD–1.

Title 24--Housing and Urban Development

CHAPTER XX--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

PART 3500--REAL ESTATE SETTLEMENT PROCEDURES ACT

Reply by OR on 8/18/10 11:18am
Msg #349453

I have had that happen to me too. Just remember that the borrowers can wire the funds to Title also. I always send a note back with the docs that say that the funds to be wired. It is always good to check the HUD before the signing so you and let the borrowers know in advance. That way if they are upset they can call their lender before the signing.

Reply by Linda Juenger on 8/18/10 1:08pm
Msg #349470

Had one last week. The lady was all upset and actually had tears when I told her she needed $2400 to close. I didn't pick up and leave. We sat and looked at everything to find out exactly why she owed it. We found it. It is to pay her taxes which are due in Sept. So, she won't have to pay them in Sept, she is paying them now. Also, she is getting about that amount back from her old escrow acct which will offset what she is paying now. There usually is a reason, just look for it and make calls if you have too. Afterwards, she was glad and had no problem paying it.
I earned my pay that night. I knew what to look for and she appreciated that. Too bad her LO didn't explain it to her. She was more pleased with me than with her LO. I like that.

Reply by Tish/CA on 8/18/10 1:32pm
Msg #349474

<I earned my pay that night. I knew what to look for and she appreciated that. Too bad her LO didn't explain it to her. She was more pleased with me than with her LO. I like that.>

Yes but did the LO earn THEIR pay? That's my personal big pet peeve and fortunately it doesn't happen often but when it does it ticks me off for the Bo and me.

Reply by Moneyman/TX on 8/18/10 1:32pm
Msg #349473

All the suggestions above are great ones.

When I call to confirm and when I arrive I tell the BO that I have no affiliation with the lender or the TC other than being contracted to witness the notarize their signatures. I also ask if they have been in contact with their LO. 98%+ times they have. More times than not, it's the 2% that have issues that the lazy LO did not want to inform them of. When I am told that at the table that they have not been in contact, I always ask them to have any contact numbers for the LO they might have available in case they have any questions. When I confirm the appointment, if I am told they have not heard from their LO, I ask them to contact the LO prior to our meeting and request a good contact number that they can use during the closing in case they have any questions.

Between the confirmation call info, info about my status, and having a contact number on hand for the LO, I have found that I have less headaches and issues that I have to deal with since the LO is paid to keep and close their loans.

Reply by MW/VA on 8/18/10 2:15pm
Msg #349489

You're absolutely right that it's not our job to tell the borrowers they need funds to close.
The main problem is that the HUD often doesn't get approved until the last minute. When I make my preliminary confirmation call I have no idea if funds are due or not. I do my job.
There are always several options. If they already knew that funds were due, they are usually prepared. Also, they have 3 days to get the money to the tc. The big problem is that the #s often come together when there is no time for them to get to the bank for a bank check. Some companies accept personal checks, and others do not.
All we can do is show up for the signing, and call the hiring party if there are issues with a short to close.

Reply by Claudine Osborne on 8/18/10 9:22pm
Msg #349543

I agree with Marilyn..It is not our job to explain to bo that they need money or to explain in great detail the HUD as some of you do! I always think of liabilities..its the LOs job to prep their bos..if not then they get a phone call from me or bo. Does this delay the signing yes..But I know my role..