Posted by Marv/CA on 3/27/11 5:46pm
Msg #377632

Who owns the documents?

I've had a couple borrowers to tell me that they own the documents and want to
hold on to them when they don't sign. Companies, lately, are not asking notaries to
collect the the docs when they don't sign. I have been telling the borrowers that I Have to take the docs back and shred them. Experienced notaries, how do you handle this issuse?

Reply by Linda_H/FL on 3/27/11 5:50pm
Msg #377633

Regardless of whether borrowers sign or not, IMO the docs are the property of the lender - we are merely the custodians of the docs, and in the event of a no-sign I tell the borrowers that the docs must be returned to the lender.

Then follow title instructions - return or written authorization to shred ..

MHO

Reply by Les_CO on 3/27/11 6:01pm
Msg #377635

Agreed! n/m

Reply by Grammyzoom on 3/27/11 6:47pm
Msg #377638

Re: Agreed!

Totally agree with Linda

Reply by Glenn Strickler on 3/28/11 12:23pm
Msg #377675

Ditto, Linda n/m

Reply by topflyt on 3/27/11 9:04pm
Msg #377646

The borrowers own their copy of the docs after they sign!

Reply by 101livescan on 3/27/11 9:15pm
Msg #377649

They are lenders docs. Borrower gets a duplicate set at the end of the signing appointment, and the docs are tentative until all prior to funding conditions are met, usually the day of recording the DOT and funding the following day. The signed, notarized documents are and will be lenders documents, until satisfaction of fully paid note is stamped paid and returned to the borrower with reconveyed deed.

I had a borrower snatch the documents out of my hands and demand I sit while she read the entire package. I called the escrow agent in NY and told them I'd have to return to client after my next six signings were completed, as I didn't have the luxury of waiting for her to read word for word. She was such a biotch I couldn't wait to escape her office. It was a $100K HELOC from Chase, which was intended to float her faltering business. It's the only time I've left a set of documents with the borrower, agent approved my doing so. I never saw the woman again, by the way.

Reply by James Dawson on 3/28/11 9:43am
Msg #377664

Doc's belong to Lender, check originator in "properties" My .02

Reply by NJDiva on 3/28/11 11:25am
Msg #377668

It's my understanding that it is against the law to leave the unsigned doc's with the borrower as they ARE the property of the lender and that their (the lenders) documents are proprietary and not disbursed without a signed contract. Not sure where I heard that or if it's even true.

Any thoughts on that?

Reply by jba/fl on 3/28/11 4:58pm
Msg #377717

I don't believe it is against the law, but standard procedure is to not leave the docs. I have had permission in the past to leave them, so always ask IF the borrower wants them I will ask the LO. I don't volunteer anything - no in my job description.

Reply by Garry Edwards on 3/28/11 11:29am
Msg #377669

Everyone agrees. Docs belong to the lender. The only docs the signer should receive are the "borrower's copy”, if signing is completed.