A few weeks ago, I received an assignment that was listed as a HELOC. When I received the doc package, it was 150 pages, more or less. I was shocked. As I looked through the package it was so different from a “normal” HELOC, I became uncomfortable and asked for it to be reassigned because I didn’t understand the product and didn’t have time to learn. It was obviously going to be a lot more work and I had accepted a low fee expecting it to be 50-75 pages. It was from a lender named Unlock (unlock.com). The documents were for a Home Equity Agreement (HEA).
Tonight I’ve received another assignment that was listed as a HELOC. When I called the borrower to confirm the appointment, I was able to determine, based on her description, that it was another HEA from Unlock. She even said Unlock was the lender.
Has anyone else seen these HEA signings? I’m expecting to end up asking them to find another notary.
HELOC can rage anywhere from 35 pgs to 150 pgs. The ones I see that have 150 pgs alot of the time are 2 pkg in one set check with the instruction and the Title company. To see if you are to split it. With the Lender and Borrower. I don’t like those kind of packages. It takes alot of time to print and split. Also ask them for more money, just tell them you were expecting the page count to be. I do that, I general get it.
Yes, I had one of those recently. I’d much rather receive a smaller package and print it twice. It takes so much more time to separate the borrower’s copy. I even had one signing company tell me to just print the package twice when I expressed my frustration of needing to take the extra time and effort of separating the two copies. Yeah,right! It’s not their paper and toner.
It is definitely worth more than a typical/normal HELOC. The problem is that it was presented as a HELOC. So, I’ll wait to see the docs but I think I will end up asking for it to be reassigned. Even though we don’t need to “know” the product, I still need to be able to have a basic understanding of the documents. So many of the documents were totally foreign to what I’ve seen in the past.
No. It is an equity arrangement. But, instead of a loan, you are giving the lender a “percentage stake” in your property. It is an investment by the “lender.” So, there are no payments. The “loan” will be repaid in the future when you sell the house or refinance. And, if the property has appreciated significantly, you will end up paying a lot more than a HELOC or 2nd Mortgage. Based on what I’ve read, I’m not sure the HEA is a smart move for anyone.
I thought of “bridge loans” as these were taken on current property for down payment on new property with the understanding that it would be paid back in full at closing of sale of current home - but the understanding and agreement was lender knew it was being used for a down payment for another home purchase.
I see offers that turn out to be something else pretty often. But if I get documents in advance it doesn’t really concern me much. I’ve seen a lot from so many different states I don’t get too excited anymore. I charge mostly for locations. I’m in a rural region. So the biggest expense for me is the drive.
I just received another assignment billed as HELOC. But, when discussing with the borrower during the confirmation process, it was clear (based on his understanding) this is a home equity 2nd mortgage. I asked for clarification from the title company and was told they are the same thing. They are similar in that they both use the home equity. But, in my experience, they are not the same thing and I was surprised someone at the title company with the job title of “Closing Department Manager” told me they were the same thing.
I charge specific fees depending on the mortgage lender, that is the way to go. But in this market you can’t trust that either. I start at $100 and go up from there, I am a dual state notary, if I travel to the other state, my fee starts at $140 as it is a minimum of 25 miles just to get to the bridge and that isn’t even time to get to that bridge. I rarely see packages unless it is a sellers package under 75 pages. I don’t even trust Hybrid packages as I have seen them come in at 150 pages as the person didn’t do the online part and I get a call at the last minute stating the whole package has to be printed.
On the subject of the type of signing. You are there as a notary, you don’t need to understand all of the documents, it is nice to be able to, but if not you can always call their loan officer or the escrow ppl at the table and they can explain the paperwork. I am an accountant and have read these doing taxes and such so I see them a lot. Truly we are not just a notary, we are a fountain of information, but we are told we are just a notary, let them think that and smile.
Just as a FYI: I spoke with a Loan Officer on this type of loan. Here is the jist: 30 year mortgage @ $150,000 loan - no payments for 10 years - however, if within that 10 years you refinance or sell, you repay that company $300,000 - you pay them double the loan amount
I’ve done two of these this year. The first time it was called an HEI and I was a little confused. It was around 150 pages as well. After doing some inquiries with my AI friend, I figured it out. Then the second time, more recently I had another but they called it a HELOC. I’m guessing some of the worker bees at the Title companies get confused on those as well. (I mean the documents were fine etc. just what to call them gets people confused).
it’s essentially a reverse mortgage (for young people) but they don’t call a loan, and you make no payment to it. But they take a large percentage of equity once you pay it off or sell the house.
Thank You 
