Are you targeting Solar Companies for your NSA business?
Especially new notaries, don’t forget to target this business segment-the solar companies if you haven’t done so. Solar contract requires notarization and they place a lien on the house with the county. Unfortunately depends on the laws in each state, solar lien can take 1st position over 1st mortgage lien in some cases. So let’s hope the clients know what they are signing for! But it is another good place to get more notary business!
Seriously? I can’t imagine any lender subordinating their lien to a solar company; in fact, I believe there’s a clause in most mortgages that guarantees them that borrower will protect their first lien position and, if borrower fails to do so or does anything to jeopardize it, lender will immediately call the note.
Again, like you said, probably state specific, but I can’t see any lender agreeing to this.
Yep, I had refis that the clients signed subordination agreement not for jr loan like heloc but solar! Yikes. Didn’t know they have that much power over your real estate.
I don’t know about anybody else but over here in the suburb, I get at least one solar co each week trying to sell us solar! This week was 3 different solar companies, I took their business cards of course but I won’t be putting solar panels on my roof:)
What I have noticed in agreements in AZ State signings is language for solar companies in new subdivisions having the power to override all entities. Solar is installed in new homes and a fee is paid to solar company in addition to monthly other fee. Normally I would say solar energy is a good thing but apparently scum bags have found away to make additional profits. Not saying all solar companies but people need to read the fine print. I have not seen solar companies in WA State using this gimmick…yet!
Via this link, Click on contractors in your state, you’ll see a list of different solar companies in your state, click on the particular solar company and then go to their website.
Just a note regarding the subordination agreement - the solar company is actually subordinate (or secondary) to the primary mortgage company and the borrower is agreeing to the solar company being recorded as a second (or third, if they have 2 mortgages). Otherwise, it’s actually the mortgage company who would be signing the subordination agreeing to do so…can be confusing, I know.
HOWEVER, it’s been about 4 years since I last worked as an escrow officer, so I’m checking with my BFF who still manages a branch of Fidelity National Title in Folsom, CA to get more details about this and I’ll update once I have “the skinny”!
As we all know a subordination agreement mainly to be approved and signed by whomever holding that lien like a 2nd mortgage lender, Solar, etc. Some lenders also have the borrower sign as well to acknowledge what is going on. The scary part is that particular lien holder can reject the subordination if they wanted to if they think the client has too much outstanding debts. Yep they can just say nope, sorry you’re just going to have to be behind us, we’re moving to 1st position in line! Hell, no lender wants that! So if the subordination request got rejected obviously the only way the lender would approve refi is to payoff all those liens because they don’t want to fall off from 1st position.
To clarify yes the lender or the solar are the ones to approve and sign the subordination but sometimes the customers do sign it as well depending on the lender. We all have seen them.
But it is another good place to get more notary business!