Posted by Shoshana/AZ on 2/16/13 10:26pm
Msg #456235

I had a very long investment property refi for CA property.

Wife was very upset b/c she was supposed to be on title with hubby. There were two interspousal transfer grant deeds that she had to sign to give up her rights. I couldn't get hold of the EO. They finally got hold of their LO. Of course he reassured them that they could put her on the DOT the very next day after the loan closes. Then he finally said that he would hold up the funding until the borrowers were satisfied. If they wanted, he wouldn't fund the loan at all - just draw up new docs. In 10 1/2 years and more than 5000 loans closed. I never heard of the lender willing to do that. Is it even legal? It's an investment property with no right to cancel.

Reply by CJ on 2/17/13 10:40am
Msg #456254

I don't know if it's legal or not. I think the LO did a good job by reassuring them that he would fix it as soon as possible. The fix is really simple: a transfer deed to put her back on. I don't trust verbal assurances myself, but worst case scenario: They can call their attorney on Monday and pay money to create the transfer deeds. Best case scenario: who ever created the interspousals can create the transfer deeds for free or cheaper on Monday. But if the docs had to be signed "today", I can see why he was making promises. This can be fixed.

On the other hand, I don't know why they surprise people with these things that have massive implications. WHAT IF someone died (like the husband) before this was corrected? The property would go into probate. The lenders (or whomever) spring this on us all the time. The borrowers are upset because they understand the ramifications. We can't get a hold of anyone on the phone, so the only person to rant at is the notary.

It would be really good if the lenders / title / whomever would TELL the borrowers that this is going to happen and WHY this has to happen, and include the transfer deeds that fix the problem right in the package. Would that really be so hard?

Reply by CJ on 2/17/13 11:01am
Msg #456257

P.S.

. . . and while they are ranting at us, we have to sit there mute, because we can't give legal advice or opinions, and they think we are idiots because we have nothing to say. And of course, the people who created this problem are home with their families enjoying their evening, with not a care in the world, while we become the scape-goat for their lack of communication. AND the whole thing about the surprise transfer deeds could jeopardize the signing (and their commission). If I were a LO or TO, I would want everyone to have my phone number in case there was a glitch at the table. And when I DO have those numbers, I already know things are going to go smoothly, because some one is doing their job efficiently.

Reply by Shoshana/AZ on 2/17/13 12:08pm
Msg #456260

It was a lack of communication between title and the borrowers. They didn't rant at me. They were more intelligent than that!

Reply by GOLDGIRL/CA on 2/17/13 1:02pm
Msg #456265

Even "intelligent" people ...

... occasionally don't understand that we don't represent escrow or the lender and have no authority to speak for them. (When in fact that's exactly what we're doing.) This becomes especially fuzzy when we arrive at their home with all the escrow/loan docs in hand; proceed to "explain" all their loan/title docs but then have to draw a line when they want more info. Add to that the lazy, incompetent LOs/EOs/Realtors who tell the borrowers "the notary will explain everything,"and it's no wonder borrowers get confused and start ranting (at us).

In any case, I don't see that anything the LO said was inappropriate, including delaying funding or a redraw. Sounds to me like he did everything he could to help, but then I'm no expert on lending law. Like you, though, I've never heard a lender propose such alternatives; they usually talk the person going off title into signing. It's probably just as well you couldn't get a hold of the EO; all escrow does is follow lender instructions, in this case, prepare two GDs taking the wife off title. The LO should have prepared them for this long before you showed up, but in a perfect world ......

I don't want to even count the times I showed up with interspousals and met a firestorm. Cheryl 101 posted recently about her latest identical experience.