In order to correct an error (such as a typo in its own name and/or the name of a borrower in the DOT), or to make a change like specifying a different grantee, would a trustee be permitted to (or, in the case of a typo/error, be obligated to?) reissue a TDUS after it’s already sent one? Would the answer depend upon whether the TDUS had already been recorded?
Hi LS,
In the original loan document package that includes the Note, TILA, Deed of Trust and all other disclosures and documentation the borrower also signs a couple of documents regarding the correction of any typographical errors in the loan documents authorizing the lender to make any corrections as necessary. I once notarized loan documents for an attorney that told me about a case where there was a typo in the date of the first payment which made the 1st payment due 20 years after the origination (someone wrote 1996 instead of 1976). He told me that the judge ruled against the borrower and said that payments were due from 1976 and that this was clearly a typographical error. I am not sure if the Correction Agreement applies to the default notices but it would certainly apply to the note and the deed of trust.
Any document can be changed. IF you have the original recorded doc, the error can be corrected. Then the signor needs to resign (and re-notaried) and language put on the doc why it is being re-recorded. You will need to pay recording fees, but if it is a Deed, you wouldn’t need to pay any transfer taxes.
Thanks Michelle and Miketh. I assume a TDUS can only be corrected if that same trustee signs again. I’d like to know if anyone here has encountered such situations, and whether the trustee has any obligations to cooperate.