Posted by Erwin/CA on 5/31/10 2:53pm
Msg #339228

Something to think about on this beautiful day

Has there ever been a court case where a judge ruled that a borrower could not be expected to read 135 pages before signing most of them in a one hour period. They sign, but really don't have the time to read what they are signing. If I was a borrower and wanted to get out of a loan, that is what I would use to justify not being accountable for the loan.
Just something to think about.
Erwin

Reply by BrendaTx on 5/31/10 3:10pm
Msg #339229

Erwin:

Everyone who gets a loan has a right to get counsel to review the documents, or to demand them ahead of time to review them.

Borrowers, however, don't exercise that option very often.

Reply by Erwin/CA on 5/31/10 3:32pm
Msg #339230

I have completed many signings were the signers were lawyers and all of them but one said there is no way they could read all of the docs before signing except one. That signing took two and a half hours and he really didn't read all of the docs, just acted like he did. I have only completed one signing where the borrower's lawyer was present. I handed the docs to the lawyer and he looked them over and then handed them to the borrower to sign and then the borrower handed them back to me. I wasn't aware that the borrower could require that the docs be sent to them prior to the signing for them to look them over. Most of the time, they have not even seen the HUD.
Erwin

Reply by Lee/AR on 5/31/10 4:06pm
Msg #339233

Not in an hour, but certainly in 3 days

Granted, several exceptions to the 3 day RTC.

Reply by JanetK_CA on 5/31/10 4:12pm
Msg #339234

I always love it when the borrowers insist on getting a copy in advance of the signing appt. and then actually take the time to review them! Makes our job so much easier. I've also signed many an attorney, but I only recall one who said he needed to read everything before signing it. Naturally, that was on a Friday evening when I had plans to go to a party with some out-of-town friends. He claimed to be a speed reader... NOT!!!

Also, FWIW, it's my understanding that the reason for the RTC period for a refi of a primary residence is to give the borrowers the opportunity to read the docs or have them reviewed by an attorney. Most of the time, that's been good enough, but once in a while we are bound to find a reader regardless - even among non-attorneys.

Reply by pat/WA on 5/31/10 4:17pm
Msg #339236

I did one where the borrower faxed everything to his Attorney and then we waited for his approval. Took two hours. Not too sure I would do that again!

Reply by Notarysigner on 5/31/10 4:44pm
Msg #339239

I believe the L O would bare the responsibility (if there was something wrong) however the borrower doesn't really know. If anything is wrong, it has usually been discussed and maybe omitted. The notary is not responsible for the "contents" only identifying the signer. If you sign documents under duress, that's your problem, not the notary's.

Reply by MikeC/NY on 5/31/10 5:22pm
Msg #339240

Courts will generally not protect people from their own stupidity, just as they usually won't give them a pass for not knowing the law. Unless they can show they were coerced pr otherwise unduly influenced into signing the documents, "I didn't know what I was signing" is a weak excuse.

The borrower has the absolute right to review or get counsel on the documents prior to signing them (or in the case of most re-fi loans, for 3 days after signing them). If they don't exercise that right, who is to blame?

Reply by Sal Servin on 5/31/10 6:21pm
Msg #339244

Ignorant of the law is no excuse!.. borrowers have the right to get all the docs and print them
at their home before the signing takes place. 2, you have the right to have an attorney read for you or be present. Of course at your expense. Don't have a computer? or printer? borrower can have Pk mail to their residence.

Reply by C. Rivera Chicago Notary Services on 5/31/10 7:31pm
Msg #339248

depends on the type of loan... n/m

Reply by MW/VA on 6/1/10 9:36am
Msg #339270

IMO that doesn't provide an excuse to get out of a loan. Prior to the signing they have a lot of communication with the LO, processor, etc. They receive disclosures. The actual signing is, IMO, the final step. Beyond that, they have a copy of the docs & 3 days to read them entirely, have them reviewed by an attorney, etc. There are safeguards built into the process.
I review every doc with the borrowers, and they would have no ability to say they didn't know what they were signing.
The paperwork I really hate is when purchasing a car--ughhh--it's like the shell game.