Of course, we'd always prefer the customers sign their documents for closing here in our office, but sometimes it just isn't logistically possible. There are a few options for closing a transaction when your buyer or seller (or refinance borrower) won't be able to be present at the title company to sign the documents, so don't panic...this won't be the first time we've dealt with this scenario.
The first option is what we call a mail-out. Once the loan documents are received from the lender (assuming there is financing involved) and we are able to work up and get approved the HUD1 Settlement Statement, we can overnight the documents to your customer. What I do is divide the documents into 2 sets--one set that needs to be signed in front of a Notary Public, and a second set that does not. I use 'Sign Here,' 'Initial Here,' and 'Notarize Here' tabs to draw attention to the places the customer needs to sign, initial, or have notarized. The customer would either need to line up a Notary Public or we can order one for them--yes, there is a fee for a mobile notary, but it's most likely cheaper than a plane ticket! Then once the documents are completed, the customer will overnight them back to us using the pre-paid air bill and envelope we've provided. They can either drop it in the carrier's drop box or call them to arrange pickup. This process can take about three business days, more if there are unforeseen delays (i.e. weather delaying delivery).
The second option is an email-out where we email the entire package to the customer and they print it out. It's pretty much the same as a mail-out except there are no 'Sign Here,' etc, tabs, and we obviously can't include an envelope for return. However, I do send an air bill for return and the customer can get an envelope from the carrier (most drop boxes have a supply of them as well). This option typically can cut one day out of the equation since we're not waiting on an overnight package to get to the customer.
If your customer is out of the country it can still work. Email is usually the best option to get the documents to them. The Notary requirements can vary depending on where the customer is at the time of closing, so let us know as soon as you can so we can discuss it. Then the process for them to 'overnight' them back is never overnight, so allow ample time for that. In some countries express delivery service is not available at all, so snail mail is our only option for getting the documents back.
In the above scenarios we do need to have the customer's original signed documents back before we can fund. We are only able to record original documents, so a fax/email back doesn't work. They can always email or fax them to us so we can review them before they send them back.
If the transaction is a Texas Home Equity Loan that changes the equation. Due to the Texas Constitution (Article XVI, Section 50, Subsection (a)(6)(N)) these loans must be closed in the office of a Texas title company or attorney, or the lender.
Another option is for the customer to give a Power of Attorney to someone to close on their behalf. I'll discuss POAs more fully in a subsequent post.
So there are ways to go about closing when your customer is not going to be in town for closing. Just takes a few more steps and a little extra time.
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