Posted by HisHughness on 2/6/13 11:09pm
Msg #454439

Query

Signer accidentally signs RTC in "I wish to cancel" section; signer's copies are correctly executed. NSA doesn't catch it, it goes in to title.

What is the remedy?

Reply by Jodith/WA on 2/6/13 11:17pm
Msg #454443

I'd be running my not so little rear end back to the borrower to get a new RTC signed, fax it to title and fed ex it at my expense.

Reply by leeinla on 2/6/13 11:21pm
Msg #454446

Call title and work it out. Have BO call title to confirm that he or she wants the loan to fund.

Reply by 101livescan on 2/6/13 11:47pm
Msg #454453

All of the above, Hugh. Yikes, this is major, it is a PTF condition.

Reply by sigtogo/OR on 2/7/13 12:16am
Msg #454457

please let un know what happens-had RTC issue today too

not same as yours but date issues with split signing. I called title, they said no biggie, they would take care of it! hopefully that is still the case tomorrow and also the case for yours. good luck!!

Reply by Moneyman/TX on 2/7/13 12:22am
Msg #454458

Make an appointment with the optometrist?

Print out new copies for the signers, call title; then be willing to meet with signers to pick up and replace their copies, fax to title, and ship overnight at your own expense, as others have stated.

There may be other legal issues on title's side since, technically, they received a signed RTC requesting to cancel the loan. (?) TC may require additional documentation from signers attesting to the mistake and reaffirming their desire to complete the closing of the loan There may not be any such issue at all, I don't know.

That is why I would contact title before contacting signers and picking up their copies first. No sense in having to meet with signers two additional times as opposed to just once with any additional paperwork in hand, if necessary.

Reply by HisHughness on 2/7/13 12:50am
Msg #454462

Two signers executed 3 RTCs each. One inadvertently signed in the cancellation sextion. I caught it, had her sign the other two appropriately, intending to give her the spoiled copy. When the 6 RTCs were mixed up, somehow the spoiled one went into the packet and I did not catch it. So, all those suggestions to call title are pointless; I didn't KNOW to call title.

SS called today, well past the rescission period, told me of the error, said I would have to get another RTC signed. I asked them what the remedy was, because another RTC did not seem to be it. SS said they would check. I also told them, of course, that if my error ever delays funding there is no charge for the signing or the corrective measures.

Gets weird here. I called borrowers, said I needed to come out to get document signed. They said a new packet had been signed a week ago by another notary. The SS did not know.

I have obviously lost a client, and understandably so.

I think the answer to my original question was exactly what title did. A whole new packet needed to be signed.

Somewhere in my embarrassment, there is an object lesson for others.

Reply by 101livescan on 2/7/13 12:52am
Msg #454463

Live and learn....

Reply by SharonMN on 2/7/13 2:29pm
Msg #454559

That's weird. I would think as long as they had ONE RTC signed in the right place by each borrower, the cure to the wrongly-signed RTC would be to have the borrower fax back a letter stating that they do not wish to cancel the loan, thereby cancelling their cancellation request.

Reply by CarolF/NC on 2/7/13 1:15am
Msg #454468

Many lenders want 2 RTC signed and returned. Now if

One was signed incorrectly and one not which one takes precedence? Wonder if this is maybe why they ask for 2? Unlikely both signed incorrect. Bad one could get trashed. And Hugh, people are only human. I wonder why they did not give you the opportunity to correct.

Reply by HisHughness on 2/7/13 1:37am
Msg #454472

Re: Many lenders want 2 RTC signed and returned. Now if

I don't know that I would have given me the opportunity to correct. I don't fault the lender or the title company.

Reply by Bear900/CA on 2/7/13 2:01am
Msg #454477

Ouch Hugh! Lesson learned for all of us.

The only thing worse that could happen is if a person was in this business for wages.

From here on my new mantra is going to be "You Sign your Paycheck".

Reply by ReneeK_MI on 2/7/13 4:10am
Msg #454481

almost everything has a solution - except for this =(

First, it sounds to me like that 'rescinded' loan pkg was sent to Lender, or title caught the error and called Lender about what to do. There is only one way for a Lender to respond to a rescinded loan - close it out, and issue an entirely new loan (new loan number, which 'proves' itself as a new transaction not linked to rescinded loan).

The risk to the Lender is too huge for them to accept that it was just an error, reason number one being that a Lender must ALWAYS operate under the presumption that someone is setting them up for a future lawsuit. In these cases of an RTC signed in error - the potential lawsuit is from the borrower who later claims they DID intend to rescind, but the L.O. coerced them into saying it was an error.

I have the unfortunate memory of one such incident from my 'inside' days that was particularly rough - exact same situation, received a 'rescind' in loan pkg, FORTUNATELY for all it was prior to funding. Called broker to advise loan could not fund, but WAS likely an error, he would have to get with borrower for new loan if that's what borrower wanted. Happens that entire file would need to be updated - credit report expired, would need new payoff, etc. Conference calls involving all kinds of law degrees ensued - broker would've loved for me to just find another line of work, borrower insisting it was an error, etc. Had to kill out the loan and new credit report wasn't in the same ballpark as the old one killing the new loan.

It actually wasn't that uncommon for a borrower to ACTUALLY rescind - and change their mind the next day or send it on a Friday and frantically call Mon morning to attempt to circumvent the rescission. Not possible, at least in no lending office I ever worked in. Ah - in fact, I recall another one where the borrower sent rescind via FedEx and it inadvertently was given to the Account Exec (broker's in-house BFF and frequent nemesis to closer/funders). The A/E hid the doc from me, called the broker and had broker 'talk' to borrower about changing his mind, in which case that rescinded RTC would've disappeared. I got wind of it - A/E was fired.

Reply by Natacha Joseph on 2/7/13 8:48am
Msg #454492

Awwww :-( n/m

Reply by CJ on 2/7/13 11:37am
Msg #454531

:( So sorry. You are such a careful notary too.

I think they should have let your correct it for free. For a chance to save a client, it's worth resigning the whole package for free.