Posted by SReis on 10/18/10 8:19am
Msg #357138

note - re-sign

A friend of mine refid last week & I guess they missed an initial on the sig pg of the note. They told her that they would send her back the pg to get the initial but they actually sent her an entire new note to sign (same figures, etc). I know people shouldn't typically sign 2 notes but since there was a mistake not sure if she should be concerned or not re-signing the note. BTW this is NOT a client but an actual friend & I'm not asking for advice just people's opinions. She already has a phone call into the lender anyway to voice her concern. TIA

Reply by PAW on 10/18/10 8:28am
Msg #357139

I too would be very, very concerned. Personally, I would not sign a second Note, without first receiving the ORIGINAL Note (with original signatures). Then, and only then, would I agree to sign a second one.

Reply by Moneyman/TX on 10/18/10 8:37am
Msg #357140

I agree with Paul n/m

Reply by Julie/MI on 10/18/10 8:37am
Msg #357141

Personally, I would not have a problem. There is only one loan number and they are not going to report two notes to the credit reporting agencies. I don't tend to create "what if" senarios in my life.

Now if the new note had a different loan number, I wouldn't do it.

Reply by CopperheadVA on 10/18/10 9:01am
Msg #357148

I have seen those signature pages of the Note that has both signature AND initial at the bottom. Totally stupid to have to both sign AND initial (kind of like all those 1003's that have that!). I always flag those with a sticky flag. Just don't want any chance of missing it.

Reply by Pat/IL on 10/18/10 10:07am
Msg #357153

I agree with Julie

Unless the note has a different loan number, I wouldn't be concerned. And, to add, in order for the note to be enforceable the lender would have to loan the money. In the absence of a second mortgage, the additional loan, even if additional money were advanced, would be unsecured.

Reply by ReneeK_MI on 10/18/10 11:55am
Msg #357165

I can see both sides, but know that if it were my own ...

I wouldn't sign a duplicate. I can see why the Lender wouldn't want to let go of a signed Note (by returning it for initialling), but WHEN this is properly remedied in a timely fashion - which is BEFORE the loan funds - there is no risk to either party. No risk is always better. =)

Reply by HisHughness on 10/18/10 8:39pm
Msg #357229

No way, Jose

1. Initialing each page, and especially the signature page, is not required for a valid note. The note can be enforced in its current form with missing initials.

2. As noted by another poster, notes are negotiable instruments. Even if the signer could eventually prevail if someone attempted to collect on the second note (and because it is negotiable, that doesn't have to be the original obligee; it could be a transferee), the hassle for the signer to prevail can be substantial and perhaps overwhelming.

3. Considering what we have seen posted in this very forum in the past few days regarding the questionable provenance of loan documents used to foreclose, there is absolutely no way I would trust ANY lender with a second original note. That includes my brother and both my sisters.

4. Occasionally, I will get loan packets where, for the lender's "convenience," a second note and deed of trust are included for signature. Though I can't advise the borrowers', I certainly can suggest that they carefully read what they are signing.

Reply by ReneeK_MI on 10/19/10 4:46am
Msg #357245

Agreed, Hugh - maybe I wasn't clear

Let me try this again:


I wouldn't sign a duplicate. (I think that part was clear, but rewording the following part for clarity):

If a Lender absolutely needs/wants his Note corrected for any reason, returning the original to the borrower for correction BEFORE the loan funds poses no risk to either party. The borrower still would only have signed ONE original Note, and the Lender simply refuses to fund unless/until he has a valid Note back in his hands.

Reply by dickb/wi on 10/18/10 8:05pm
Msg #357226

notes are negotiable instruments and there is....

no way i would sign a 2nd one with out the first one back in my hands...paul is 100% correct...