Posted by Shoshana/AZ on 12/1/10 9:06pm
Msg #363551

A Good Laugh at the Signing Table Today

Wife takes title as married sole & separate. Husband gifted wife with $XXXX.XX to close escrow.
Husband had to sign a gift certification that stated in part: "This is an outright gift from the undersigned and does not ahve tol be repaid. There is no repayment expected or implied, written or verbal, in the form of cash or by future service or services by the Mortgagor."

Reply by J Trejo on 12/1/10 11:19pm
Msg #363563

what lender or title co. put that clause together? How funny indeed!

Reply by PAW on 12/2/10 7:34am
Msg #363569

Don't know why anyone would consider this funny.

It is not uncommon to use monetary gifts, especially from family members, to pay down the amount due at closing. The lender is required to comply with HUD Handbook 4155.1. The handbook makes it very clear that the funds must be a gift in the true and legal sense. Specifically that the gift does not need to be repaid. The buyer must declare that repayment is not a condition of the gift, in which case it would be considered a loan and may nullify the mortgage. What better way to ensure, as much as possible, that the gift does not need to be repaid than to have a affidavit signed so stating.

Reply by Linda_H/FL on 12/2/10 7:37am
Msg #363570

Re: Don't know why anyone would consider this funny.

IME those "gift letters" are normally signed prior to the "clear to close" being issued - lenders don't want to release the final paperwork til they have this gift letter in hand.

Glad to see I'm not the only one that missed the humor in this - I'm guessing it's because they had him sign off on the need for repayment in "future services"...

Reply by Shoshana/AZ on 12/2/10 8:14am
Msg #363576

Re: Don't know why anyone would consider this funny.

Linda, they thought that was really funny! They couldn't stop laughing.

Reply by Moneyman/TX on 12/2/10 8:33am
Msg #363578

Re: Don't know why anyone would consider this funny.

"...by future service or services by the * Mortgagor *"

It doesn't say the same for the husband. That is probably what they found to be so funny.

Reply by jba/fl on 12/2/10 8:41am
Msg #363579

Re: Don't know why anyone would consider this funny.

"It doesn't say the same for the husband. That is probably what they found to be so funny."

Huh?

The Mr. is the lender, the mortgagor is the lendee to be doing the repayment or not if truly a gift.

It is cause for chuckle though - and anytime I can have laughter at the table, I know I've got a speedy signing. Laugh on!

Reply by PAW on 12/2/10 9:05am
Msg #363580

Re: Don't know why anyone would consider this funny.

No, the husband is not the lender, he is the gift provider. Thus he had to sign the affidavit stating that no cash or services by the borrower (his wife) is expected to 'repay' the gift.

I still don't see the humor in it. I guess it all depends on what one considers as service, especially where their spouse is concerned.

Reply by jba/fl on 12/2/10 9:18am
Msg #363584

Re: Don't know why anyone would consider this funny.

My mistake - TY . Sometimes I shouldn't try to squeeze a post in when I should be prepping elsewhere. (blush)

Reply by Virginia/PA on 12/2/10 9:56am
Msg #363591

Guess we know where their minds are - and yours is not. n/m

Reply by C. Rivera Chicago Notary Services on 12/2/10 9:23am
Msg #363587

if it ended with the "Wife", maybe it would be funnier...? n/m

Reply by LynnNC on 12/2/10 10:00am
Msg #363592

"There is no repayment expected or implied, written or verbal, in the form of cash or by future service or services by the Mortgagor."

And just what "services" might the Mortgagor provide her husband"