can a mortgage company mail your closing papers to you to sign?

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A friend of mine has elderly parents who want to own a home before they die. They found a home they like and have been dealing with Country Wide to get a loan for this home. They were told, by the seller, who also has their mortgage through Country Wide, that they were approved for their loan. That itself seems odd to me, the lender shouldn’t contact the seller about the buyer. So, they have been approved, which also concerns me. He is in his 70s, she is in her late 60s and he is in very poor health, they are on a fixed income that will barely cover the mortgage (i thought you couldn’t get a loan if your income was not a certain amount more than your mortgage) because you still have utilities and health insurance, car insurance, food and other living expenses. So, Country Wide has approved them and sent the closing papers DHL for them to sign and send back, even though the office is right down the road from them…. is it even legal to sign closing papers and mail them, i though you had to meet with seller, lender, lawyer… etc….

It especially seems strange to me now with every thing going on, i thought it would be much harder to get a home rightnow. They do have 36,000 in a VA grant to put down, I am wondering if the lender is just wanting to get that 36000 now and are not concerned with later.

I am just worried about them getting ripped off… oh and the loan is a 20 year loan, how can a 70 year old man in poor health get a 20 year home loan????? he can’t get insurance for the loan b/c of his health!!!

Please advise if you know the mortgage business

  1. Reply
    February 22, 2011 at 4:22 am

    In some states closing documents can be mailed to the buyer, but they will likely have to have them signed and notarized- so it may still present challenges for them.

    It all depends on the state and lender, my advice would be to ask these questions to the lender up front before getting into an agreement and also check to make sure that the company is reputable.

    Good luck!

  2. Reply
    February 22, 2011 at 5:21 am

    It is legal. Closing papers need to be notarized however. You should be very worried though. Your folks don’t seem to be in a position to purchase a home. Isn’t giving mortgages to people that can’t pay them back what got us in to this mess in the first place? YES I would demand to speak with the Countrywide representative that filled out the loan application and ask where his head is. Do your friends parents have enough income to substantiate that loan? If not, I would report the incident to the banking commission. Countrywide is my lender and frankly, they are Bas*@rds. They also have a problem keeping track of your escrow money. You can send me an e- mail if I can answer any more questions.

  3. Reply
    February 22, 2011 at 5:47 am

    When I refinanced a couple of years ago, I met the lenders representative in a coffee shop. Not only did she watch me sign each document, but I had to use her pen. She asked me to remove my pen from the table so there wouldn’t be any mistake about it!

    These rules could vary by state.

    It would be age discrimination for them to refuse to lend because of him being 70.

  4. Reply
    February 22, 2011 at 6:28 am

    I don’t think so….

  5. Reply
    February 22, 2011 at 6:49 am

    No, they are being scammed.

    Home sales and loans are not done via mail.

  6. Reply
    Weimaraner Mom
    February 22, 2011 at 7:42 am

    If they got approved they aren’t sending in the closing paperwork they are sending loan documents for them to sign and send back. closings are done in an attorney’s office or title companies office with witnesses, at that time the deposit and closing costs are paid.

    Make sure you get a commitment letter from CW stating they are approved, because I got approved over the phone, then filled out the documents they fedex’d to me, and then 4 months later after I had gotten my closing date they started asking for paperwork like copies of pay stubs, bank statements, other documents before they would officially approve me. Approval over the phone doesn’t make them approved.

  7. Reply
    Jessica P
    February 22, 2011 at 8:10 am

    It is very, very unlikely for a Lender to handle a transaction without a Title Company. In which case, the Title Company is who would send out closing documents.

    The seller should have no input on anything that has to do with the Loan. I would have them look into this further. Perhaps, go to a lawyer for notarizing the documents if it is indeed legit.

    Good Luck!

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