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Evil rubber stamping banks
Old 10-18-2010, 10:27 PM   #1
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Evil rubber stamping banks

Was listening to NPR and "the banks" were being raked over the coals for rubber stamping mortgages and being very casual about the mortgage paperwork. Gotta say, from my perspective Fannie Mae has no strong ground from which to preach that message. We're about to close on a Fannie Mae foreclosed property that we bought via an online auction and all the paperwork is being handled online. Our signatures and initials on the purchase agreement and other paperwork are electronic, and the Fannie Mae Mae lawyer's sig looks like a rubber stamp.

Since Friday, we've been discussing a couple things with the escrow company - it seems that they are of the opinion that Fannie Mae requires the buyer to pay for title insurance. Not only is that contrary to any transaction we've been involved with the purchase agreement specifically states that the seller will pay for it. That would be an agreement rubber stamped by the Fannie Mae lawyer.
The purchase addendum has nothing in the blanks restricting future sale of the property, in fact, that section is unchecked but initialed by us. The purchase addendum is rubber stamped by the Fannie Mae lawyer. Friday we got a form to sign acknowledging that we wouldn't sell the property for three months or for more than we paid for it. Well the heck with that - we're paying cash, if we buy it we own it, and of greatest importance, it is something we didn't agree to in the original agreement.
C'mon - I read most of the bafflegab agreement emailed to us on a little laptop - the Fannie Mae lawyer is probably rubber stamping dozens identical contracts every day - I expect her to know what she's agreeing to on Fannie's behalf.
Anyway, from my perspective, Fannie is being at least as sloppy as the banks - and I don't want to pay for it's mistakes.
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Old 10-20-2010, 05:04 PM   #2
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e-signatures are legal.

Are you getting a loan to pay for it or paying cash?
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Old 10-20-2010, 08:31 PM   #3
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Interesting. I am enjoying your reports on this process. They agreed to pay for the title insurance so they better pay for it.
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Old 10-20-2010, 10:04 PM   #4
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Interesting but don't confuse sloppy with violation of the law. If you rubber stamp a check as drawer you are held to the check but there is no violation of a law. If you rubber stamp an oath that you have done something and you did not e.g. due diligence . it is a big problem and you may have committed a crime
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Old 10-20-2010, 11:09 PM   #5
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It's an interesting process - a bit on the stressful side and not for the neophyte property buyer. No handholding and some fairly wooly practices. On Friday we had called the person who had sent us incorrect documents to be signed - outlined to her the problems, quoting document title, page, and paragraph. In my starry-eyed opinion, an escrow officer is impartial, and only puts down what is in the contract - here two brand new terms were being introduced. Seemed to me she should have reviewed the terms and made the corrections. On Monday, after getting nothing, we called again and were told she would present our concerns to the seller, Fannie Mae, but we had to put our "questions" in writing. Weird. Not questions - flat out incorrect terms. I wrote a letter and emailed it to her. Called the next day and the letter hadn't been presented.

Ok. At this point, we are due to close on Thursday and things are getting a bit taut. The auction company, REDC, has language stating that they get paid in any case. The escrow company has big failure to close penalties. A RE agent we cut in for 1% just because it cost us nothing and we like her gets a call from someone at REDC claiming that Fannie Mae will grant NO extensions whatsoever, and that we would incur $350/day penalties if closing is delayed. Hunh? Kinda mixed messages there, but the reality is that the escrow company is holding 5% of the purchase price as a deposit, and I'm getting the feeling they and REDC are going to make sure they get paid.

Yesterday afternoon while driving to buy a trailer to move with we call a higher person in the chain to find out about our letter. She hasn't seen it. We say we'll resend it, I get on the phone and suggest that if that underling is working for them that she get the dang email from her. This morning I learn that the underling claims she never got the email, which is odd, given that she replied to us with my letter linked. Pointed that out. Was told the higher up didn't want to dwell on that.... OK, neither do we, we just want to do business.

This afternoon I am informed that my letter was passed up the chain and my interpretation of the terms is correct on both points and further, that the escrow company's list of junk charges that I disputed has been shaved by about $800. I was nice though-out. We have corrected paperwork, our bank has wiring instructions, the wire should be down there first thing tomorrow morning, and the closing date is the 25th.

Be interesting to see if anyone tries to skim any extra over the next few days - I don't expect much skimming, but someone may try and count coup for face savings and a few bucks. Eh. Wouldn't be unexpected.

Don't think I would recommend the auction process for most, and REDC/Fannie Mae/InCahoots Escrow are like walking through a room full of pickpockets and snipers on high. If we end up owning the place in 5 days I'll say we would and may do it again. But our idea of fun is different.

My opinion remains that people are buried in the foreclosures and in the mountain of overwork lots of mistakes are being made. Also probably some people are making big bucks grabbing handfuls of the candy going by.
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Old 10-21-2010, 04:29 AM   #6
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Article on CNN

Foreclosure mess: Fake signatures and lavish gifts - Oct. 20, 2010
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