Life Settlement Notary

What is a Life Settlement?

When a person no longer needs their life insurance policy, they may be eligible to sell it to a third party for more than surrendering it to the insurance carrier. This sale is called a life settlement.

In a life settlement transaction, the policy’s owner transfers the policy to the buyer in exchange for an immediate cash payment. At this point the buyer becomes the named owner of record with the insurance company that issued the life insurance policy, pays all future premium payments and then receives the benefit upon the death of the insured person.

Before the emergence of the life settlement market, policy owners had few options if they didn’t want or need their policy. Traditional options included letting it lapse, surrendering the policy, or requesting a 1035 exchange. These options may still be a good fit. Now, the life settlement market has become an additional attractive option to generate more cash to be used while living.

A good question would be what is a 1035 exchange?
For an exchange to qualify as tax-free under the IRC Section 1035, the individual named on the annuity contract or life insurance policy must replace the old contract with an equivalent new contract. This rule effectively disqualifies the holder from a tax-free swap if an annuity contract was exchanged for a life insurance policy or vice versa.

Many of the pages in a Life Settlement Contract need to be notarized. This is where the importance of a traveling notary comes in to play and where Andrea’s Mobile Notary and Loan Signing Service is needed. Since my job as a Mobile Notary is to prevent fraud, it is of high importance to follow California notary laws. Since time is of the essence it is very important to have no notarial errors. It is very important to work with an educated life settlement notary. Sometimes, the transaction will include escrow documents. As a Loan Signing Agent, I am able to notarize escrow documents flawlessly.

I have had the pleasure recently of working with a competent and caring Life Settlement Agent. If you need assistance or have any questions with Life Settlement, please feel free to contact Benjamin Stock.
Ben@Stocklifesettlements.com
StockLifeSettlements.com
800-674-9918 p
818-687-3909 c

Adjustable Rate Note

There are many options that a buyer has when choosing what type of loan to obtain. This loan signing blog will contain some basic information regarding an Adjustable Rate Mortgage. The acronym for this type of loan is ARM.

In this type of loan, the Note can be could be for 30 years however the interest rate will change. The interest rate on this loan will be fixed for a short period of time. The rate of interest will be smaller in the beginning and then it will adjust. This can be a huge benefit for borrowers who do not want to hold on to the property for a long period of time. The term of the rate will eventually adjust after the fixed period of time. This adjustment depends on an index known as the LIBOR (London Interbank Offered Rate).

When doing a loan signing with an ARM, I find that the signers are very knowledge about their loan documents. As a Loan
Signing

Agent, I go over any basic questions and guide the signers though the loan documents before I perform any notary duties. For example, I will show them what the interest rate of the loan is, what the interest rate and monthly payment changes are, and what the limits on the interest rate changes are in the loan signing documents.

I always love helping people with loan documents. It is very fulfilling to be a Loan Signing Agent and a Mobile Notary. I look forward to many people with their loan signings!

Seller’s Loan Documents

This week in my mobile notary and loan signing business, I have had an opportunity to provide loan signings for two clients who were selling their homes. This type of loan singing is called a Seller’s Package. By coincidence, both sellers had property that they were selling in New Jersey.

It is very important when notarizing out of state documents, that the Loan Singing Agent pays close attention to the verbiage on the documents that the signers are signing and where the notary is placing their notary seal on the document.

For example, an affidavit will contain the wording, “sworn” or “affirmed” before a notary or any public official. However, if that notary certificate has New Jersey verbiage and the loan signing agent is in California a California Jurat must be supplied and attached to the documents. When performing a notary on these types of documents the notary and loan signing agent must have signers swear before the notary under oath and sign the document in the presence of the notary or loan signing agent. Then, the notary signs and places their seal on the affidavit. A thumbprint is always required in the notary’s journal on Jurats and affidavit types of notaries. If the signer is uncomfortable swearing to a Supreme Being, then affirming on one’s personal honor that everything in the document is true and correct is required. This type of notarization is extremely important because the Jurat will provide proof that the signer told the truth regarding information in the document under the penalty of perjury when the document is notarized.

Duties of A Mobile Notary and Loan Signing Agent

The roles of a mobile notary and loan signing agent are very important. Many documents such as mortgage documents, wills, contracts, sworn statements, affidavits, and powers of attorney often require a notary. The duties of a notary often vary from jurisdiction to jurisdiction. In the state of California, it is very important to verify the identity of the person who is signing the document. Often, a thumb print will be required as well.

As a mobile notary and loan signing agent, it is very important to read all documents very thoroughly. You should also know where to place your seal or stamp on the document. When performing a loan signing, it is our duty and responsibility to guide to signer through the loan documents.

Also, whether you are acting as a witness, administering an oath, or acknowledging a signature, will determine whether the individual is required to sign the document in your presence or just confirm that an existing signature is, in fact, their own.
It is very important as a notary to properly identify all signers. Also, it’s important to obtain a journal entry and log all the necessary information pertaining to the notary transaction. A mobile notary and loan signing agent cannot give legal advice. However, they can guide the signer to the right person who can answer their questions. Often this will be their attorney, an escrow officer or the lender who issues the documentation. When I am doing a loan signing I often get the phone number of the escrow officer or lender ahead of time in case questions regarding the mortgage documents come up. I find that most of the time people are happy to help and working together as a team can get a lot accomplished.

Fingerprinting When Notarizing Deeds and Powers of Attorney

In the State of California there are several types of documents that require a thumbprint in the notary’s journal. These documents are a Deed, Deed of Trust, Quitclaim Deed, and a Power of Attorney.

These documents are very important because they pertain to real property, financial and health related affairs of an individual. The job of a notary is to prevent fraud. The nature of Deeds deals with title to property and therefore it is of high importance that a notary follows their state laws. Properly identifying the signers involved, obtaining a proper journal entry, and a thumbprint is very important.

A power of attorney is important because it grants someone permission to manage your affairs on your behalf. One can find themselves in a situation in life where they need someone to make decisions on their behalf. The principal is the party giving POA, and the agent is the person receiving the power to act on their behalf. When a person has authority to act on your behalf financially there is a large amount of responsibility that a notary has during the notary process. Once again, following your state laws concerning notarization is vital.

As a Mobile Notary and Loan Signing Agent I often perform notarial services on these types of documents.

Power of Attorney

One of the most common mobile notary requests that I receive is for a Power of Attorney. This document is extremely important and therefore I always preface the mobile notary requests with several questions.

First, I inquire whether the signer is able to sign their name. This might seem like an odd question however many people are often ill and aging which could affect their ability to sign their name. If the individual is unable to sign their name a special type of notary must be performed which requires two witnesses. This notary is called a Signature by Mark. The signer in this situation would make some form of a mark or an x on the documents before notarization would take place.

Second, is the signer conscious and aware of what they are signing? This is important because it is the job of a notary to prevent fraud in terms of identity falsification. Another important element of the Power of Attorney is to ensure that the signer is not being coerced into to signing. The signer might be out of sorts due to surgery or medication. I also will inquire regarding the signer’s condition if they are ill or recovering from surgery.

Third, does the signer have a valid form of ID. This would be any type of ID such as a Passport, Senior Identification Card, or Driver’s License. If they do have an identification, then I inquire if the ID is current. If the ID is expired within the last five years in the state of California then it is still acceptable for the notary to use.

Lastly, there are some basic key terms that you will encounter on a Power of Attorney. The person who is giving Power of Attorney is called the Principal. The person who is receiving Power of Attorney is called the Agent.

  Loan Signing 101

Often as a Mobile Notary when I am performing a loan signing, the signer has many important basic questions regarding their loan documents. The process of buying, selling, or refinancing a property can be very stressful for a lot of people. I am always happy as a Mobile Notary and Loan Signing Agent to guide the borrower or seller through the loan documents and assist in any way that I can to help the process be easier.

I thought I would write a blog to help assist and educate buyers and sellers on some fundamental documents in the loan signing package and some loan signing terms. Many of these documents require a notary and the loan signing terms below are often listed in almost all loan documents.

 

Note- A note is simply a contract. This will state what the borrower is borrowing and show the interest rate of the loan, will state the payment amount and the term of the loan.

Interest Rate- This is what the borrower of the loan agrees to pay back the bank on the money that is borrowed. The higher the risk, the higher the rate. The lower the risk the lower the rate.

Property tax- These are taxes that are due to the county where the property is located. Most property taxes are due twice a year.

Deed- This very important document records the owner of the property. It always goes thorough the County Recorder’s Office and will always be notarized. You will also find other information on the Deed such as the lien amount, who is lending the money, the legal description of the property, and any rules and regulations that the property owner has to follow.

 

Grant Deed- This is used to sale or transfer real property from one person or entity to another person or entity. This is another important document that gets recorded at the County Recorder’s Office and will require notarization. The Grantor is the name of the person or entity transferring the property and the Grantee is the name of the person or entity that the property is being transferred to.

 

 

 

 

 

 

             Travel Documents for Minors Who Are Traveling

 

A document that I am often asked to notarize is a Permission to Travel document for a minor. Often a child is only traveling with one parent and therefore the other parent must have a Permission to Travel form filled out and notarized. Often the U.S. customs will ask for documentation and if the document is not notarized the permission letter could result in a denial to the entry of the country. If the child is traveling with an adult other than their parents, both parents must provide a written permission to travel form. This is a common mobile notary request.

A permission to travel form can be accessed on line. Notary law in California requires the signer to sign before the notary. And the signer must provide the notary with a valid form of ID such as a driver’s license or passport. The permission to travel form will often require a California Acknowledgment or a California Jurat.  Questions sometimes arise when notarizing this type of document. The signer should always contact the company or entity that is requiring the document to be signed and notarized. Often the rules and regulations regarding the form can vary from entity to entity. For example, a certain airline may require a notarized form. Also depending on the destination of the country one is traveling to, that country may require a notarized form as well.

With summertime approaching, I expect to perform many mobile notaries for this type a form. And I am always happy to help especially in last minute situations.

Power of Attorney

 

A Power of Attorney is the most requested document that I receive to be notarized. A Power of Attorney is an extremely important document that requires a notary. There are many requirements that need to be in place before a Power of Attorney is notarized.

 

I always prequalify the Power of Attorney notary appointment with the following questions.

  1. Does that signer have a valid form of ID, such as Driver’s License or Passport? If so, are they current or expired within the last five years?
  2. Is the signer of the Power of Attorney conscious and aware of what they are signing?
  3. Is the signer able to write their name?
  4. What is the age of the signer?
  5. What is the optimum time to perform the notary if the signer is ill or being hospitalized, taking into consideration that certain medications or recent procedures can leave the signer less prepared to sign with full cognition?

 

One might be wondering why all of these questions for a Mobile Notary for a Power of Attorney?  The answer is, my job as a notary first and foremost is to prevent fraud. Being that the Power of Attorney grants a person to manage your affairs if you are unable to do so, it is vitally important that these questions are addressed. Some Power of Attorneys deal with financial and business matters. Other types deal with health and other legal matters.

 

It is of grave importance that the signer is not being coerced into signing the Power of Attorney. If their health is failing or they just had surgery, it is important that they are aware of what they are signing.

 

If they are ill or injured, as a notary I need to know if they are able to sign their name. If they are unable to sign, I would need to execute a different type of notary called a Signature by Mark in which two credible witness would have to be in place in order for the Power of Attorney to be notarized.

 

Now one can see what is required and why preparation for the Power of Attorney is so vital.

 

 

 

 

DBA Form

 

There is a very common document that requires notarization these days. This form is called a Doing Business As.  DBA, which stands for “doing business as”, is an acronym to know. It signifies that an individual or company is doing business under a pseudonym. State laws govern the creation and use of DBA.

A DBA is required in order to open a bank account and receive payments in the name of your business. The County Recorder requires this form to be notarized. The DBA has to be filled out and notarized with no errors due to the fact that it is recorded with the County.

Filing for a DBA allows you to do business under a different name. Your DBA is different from your name as the business owner, and it is different from the names of any partners you have as well. In California, a DBA is sometimes referred to as a “fictitious business name,” or FBN. Even though it is called fictitious, it’s just as real as any other name for a business, whether that name refers to an individual or an organization. However, most DBA’s are utilized by sole proprietorships, especially if the business name is different than that of the owner.

The name of your business is up to you, but it needs to be properly registered with the state of California. This can be done in person in the county where you reside or you can handle it all through the mail. It must also be notarized.

Certain businesses have to pay attention to DBA’s and take the motions to file for one because when you form a business, the legal name of the business defaults to the name of the person or entity that owns the business—unless you rename and register your business with a DBA name. As a Mobile Notary, I can assist you in the process of completing your documents by notarizing them accurately.