Had an extremely unpleasant experience this morning. LONG story, fair warning! But I could really use some outside perspective…
Commercial loan signing and the docs included two forms which stated that a total over $25,000 in closing costs were “due at closing” and each form required the borrower to sign, “acknowledging the amount due”. The borrowers were never informed of any funds due at closing and there were no instructions provided regarding the collection of funds or wiring instructions for the borrower to send the funds. It ends up that the borrowers hadn’t received any kind of disclosure beforehand nor any kind of briefing on the closing procedure/documents/numbers or anything.
I let the borrowers know that we would need to call the title and/or lender for clarification before proceeding with the signing. We tried several people but no one answered. We tried calling the attorney who drafted the docs, no answer. I tried to call my SS, no answer and voicemail box full. Borrower sent an email as well, no answer.
At this point, I had already been at the appointment for almost an hour and had other appointment to get to before another snow storm this afternoon. So I apologized, adjourned the closing, gathered the docs, told the borrowers that someone would be in touch with them, and left. I submitted a completion report outlining what happened and continued on to my next appointment. I really didn’t know what else to do at that point. I mean, if I was the borrower, I wouldn’t want to sign a form that said I owed over $25,000 either!
A couple of hours later, I get a call from the SS and I could barely hear what she was saying. It took me a moment to process what was going on, but in the background I could hear someone from the title company YELLING on another line about me not completing the closing. It went like this…
Other lady screaming in the background
SS: “Hello this is _____, a manager with (SS). I believe that you had a closing with (borrower) at 9am this morning?”
Me: “Yes, there was some confusion about two forms which said over $25,000 were due at closing, which the borrowers were not aware of, so we called _____ and ____ and emailed ____ for clarification but no one got back to us so I decided to adjourn the closing”.
SS: “Oh, ok. I spoke with the title company and they confirmed that funds were not due at closing, which we understand might have been confusing if you’re not familiar with commercial loans.”
Me: “I am a bit confused because there were two forms that specifically stated that funds were due at closing and each required a signature.”
SS: “Oh… really?”
SS: “Ok, well we really need you to get back to the borrowers and complete the signing as soon as possible.”
Me: “I’m sorry, but unfortunately there is no time in my schedule for today for another trip back to the borrowers.”
SS: “Ok, bye.” hangs up
The SS has since sent out a blast trying to get another notary out there in a snow storm, are offering $70, and the package requires a full scan back. Lol! Good luck with that. They also called back again asking if I left the closing package with the borrowers. I said no and they seemed surprised.
So… Did I do the right thing? I’ve never been in this kind of situation and am still in shock trying to process what the heck happened today.