ESCROW CHARGES/ NOTARY FEES: Why are notary fees in an escrow transaction a separate charge, even when it is the Escrow Officer or Assistant doing the notarization of the documents? Clients think that this should be a part of the escrow service provided, but that is not true. Notary fees are separate because obtaining a notary commission is separate from doing escrow processing work. Qualifying to be a notary requires the individual to make a long term commitment, getting educated, going to classes, taking (and passing) a test every 4 years. It involves paying for all these costs and the notary bond and supplies. Being a notary is not a condition of working in escrow, and the escrow company does not reimburse the notary for the costs. Therefore when a notarization is done, whether in office or outside, the costs for such services rendered are separate from other escrow costs of the transaction.
Please note that the Secretary of State allows a charge of $10.00 per signature that requires notarization. In 1 set of loan documents there could be 4 to 5 documents that require notarization. In addition, a surcharge for “after hours” or traveling to the site is allowed.
FOR WHOM THE “BELL” TOLLS: By now you have all heard about the saga of the City of Bell, where salaries of certain city officials and council members of this city with about 37,000 residents reached astronomical heights. LA Times broke the story that their City Manager was making almost $800,000 a year, much more than what President Obama makes, and their Police Chief was making $457,000 a year, double what the LA Police chief makes. Their City Council members were also making hundreds of thousands for part time work. Imagine the shock and drama as irate citizens congregated at City Hall! In a matter of days these high salaried city workers were given the ax and the City Council members salaries were slashed to more acceptable amounts. This story has caught nationwide attention and has prompted the California Attorney General and the State Controller’s office to check for any wrongdoing. I can only shake my head and file this story under the heading: “What were they thinking?” The saga changes every day, so check the Times for follow up articles to their original article here and an article on how the drama at Bell has reverberated through other communities in California here.
THE ART OF BARTERING AND SWAPPING: An intrepid 17 year old entrepreneur barters his way from a cell phone to a Porsche. This is one cool story that is a good lesson for all, whether young or old. The lesson is: “where there is a will, there is a way”. Nothing beats human ingenuity and dedication. Too many of us moan that we don’t have the wherewithal to buy this or that. This young man opened himself up to possibilities and made it happen, trading and bartering from a small item onwards. What a great story!
THE ART OF USING CREDIT CARDS: I pride myself on not using credit cards, but paying as I go. What cards I do have are for emergencies only. So was I surprised by this article which tells me that if the cards go unused, the card issuer may eventually close the account due to inactivity. Even though the zero balance does not affect my credit score, the closing of the account will temporarily drop my score. Live and learn! So the idea is to show some debits and credits if you want to keep the account. For more tips on how to balance your credit and debt to maximum benefit, got to Liz Weston’s tips on MSN – there is good information there!
RETIREMENT MYTHS: I just had a birthday, and I wince to think that I am getting closer to that date in which I will be able to start drawing Social Security. The concept of “retirement” is one that we think of and then put off. “I’ve got plenty of time”(#1 Myth) is the usual response. But in this economy the ability to retire and live comfortably may escape most of us, unless we plan, plan, plan ahead. Will there even be Social Security in our futures? How many of the myths in this article is hampering you from saving for retirement?
On the other hand, if you or your family are already retired and on social security, or are making decisions regarding when to go on, here is an article of interest. It’s good to remember that there are choices you can make. Do you start collecting now at a lower amount but for a longer period of time? Or do you opt to collect later for a larger amount but shorter time period? Read about it here.
21ST CENTURY TECHNOLOGY: Going Green has turned another page. Electric cars are the hottest item out there (Chevy Volt, Nissan Leaf, Tesla Roadster). The main issue, I would think, is how far can you drive on one charge, and where would you hook up if you were going long distance? The answer is coming! The first “Electric Highway” is being planned right now in Washington State stretching from the Canadian border, across Washington, to the Oregon border. With that, you know that the connection through California can’t be too far away. Check the article out here.
CROOKS AT WORK: This just in! Brent Merriell of Atlanta, GA bought a number of properties, getting loans in the millions from Omni National Bank which was later taken over by FDIC. Not being able to pay the mortgages, Merriell’s properties came under foreclosure and Merriell negotiated with FDIC to allow the short sale of 7 of his properties at values considerably less than what he purchased them for. Come to find out that the 7 new “Buyers” for the properties were fake and Merriell had used stolen identities to commit mortgage fraud. The whole scam was discovered through a sting operation conducted by the Troubled Asset Relief Program with help from FDIC. Here is the story.
What do you bet that the fraud started with the mortgage loans on his original purchases and just continued thereafter? Is it any wonder lending guidelines are now so tight and financial institutions are leery of making loans? For other incredible mortgage fraud news, go to www.mortgagefraudblog.com.
Thank you for reading through this edition of my monthly news, all culled from my daily perusal of interesting issues on the information highway. For those of you who are perfectionists (like me) and micromanage everything and want everything to be “just so”, this is for us to remember:
“Just because things are not going perfectly does not mean they are not going well.”
~Al Groh, football coach~
