Decoding Sale and Loan Docs, Part 2.
First in the analysis of documents used in residential transactions are junk documents. The documents that fit in this category are non-negotiable or provide minimal or no useful information. Most are directed at borrowers, and are acknowledge that disclosures required by law have been given by lenders. For example, that borrowers must receive a Good Faith Estimate within 3 days of submission of a loan application. Other documents acknowledge that the borrower has been told that the lender may not service the loan, the borrower has a right to or has received the appraisal, that failure to make payments will be reported to a credit bureau, and so on. Also in this group are most of the documents buyers and sellers are required to sign by the escrow agent. NEXT: Educational and probable future use docs.