Posted by HisHughness on 3/24/13 9:25pm
Msg #462856

What the #@&$%#?

I just signed a loan that had document in it called "Signature statement. Acceptance of terms and conditions." It contained the following paragraph:

"BY SIGNING ABOVE, i/we also hereby acknowledge and accept the terms of my/our Note and Deed of Trust dated March 22, 2013, without the right of recourse."

My first thought was, What the heck did the document preparer think the signer was doing when she signed the note and deed of trust themselves? Isn't acknowledging and accepting the trms exactly what the signatures on those documents do?

Beyond that, though, what is this "without right of recourse?" If I remember my Bills and Notes correctly, when you hold a note, and you want to assign it to someone else, if in signing it over you do so "without recourse," it means that the assignee cannot then sue you if there is a default on the note.

The note in this transaction is not being assigned, though. It is the foundational payment for a mortgage. Does the lender have the idea that by adding that language in a document outside the note or deed of trust that it is precluding the borrower from ever suing? Perhaps more importantly, does the lender know its derriere from a Florida sinkhole?

Reply by 101livescan on 3/24/13 11:00pm
Msg #462859

Yikes, who is the lender, any way?

Reply by ReneeK_MI on 3/25/13 6:19am
Msg #462869

confusing to say the least

As you well know, life is in the details - and the precise verbiage of contracts.

Here's a pretty concise explanation of recourse vs. non-recourse mortgage loans:
http://www.nolo.com/legal-encyclopedia/whats-the-difference-between-recourse-nonrecourse-loan.html

HOWEVER ... what I find confusing is that this "Signature Statement" uses slightly different verbiage ("without the right of recourse"), and is on a "Signature Statement"? Would that even hold water as an addendum to the Note, or rider to a mortgage - or even as ANY form of contract agreement?

Were it me, I'd want to read the actual recourse/non-recourse language within the mortgage.

Reply by Saul Leibowitz on 3/25/13 10:15am
Msg #462885

Re: confusing to say the least

I can hear a couple of my professors groaning in their graves right now. A maker of a note is not concerned with the right of recourse only the receiver of the note who intends to sell it.

Reply by bagger on 3/25/13 1:26pm
Msg #462919

I hold in my hands

a chase package.
w-9's, 4506-t's, Note basically all of the multi-page docs are requiring initials.
Get this page 17 of the DOT/Mortgage which is after the acknowledgement page, has to be initialed.
And what does it say on this page???

Why " this page is left blank intentionally" of course~
!

Reply by Chakwaina on 3/25/13 2:30pm
Msg #462954

If I was the BO, that would not have been signed and the closing would have stopped at that point.

Of course as a NSA, I could have only shook my head all the way home wondering why the BO did sign it.