Whenever we have new ways of doing things lenders will shy away from them...Just like when we started to use faxes...At first lenders didn't want to accept them as a legal signed document but as it became more common then it was accepted. Lenders are really wanting to make sure they don't accept something that is going to contribute to more fraud.
Given time they will accept Electronical Signatures....

I think back to the housing bust. I think of all the "lost" paperwork. Then I wonder if perhaps the banks are learning that having a real document is necessary when it comes time to foreclose. If I get the "real" signature of a person and it is witnessed when foreclosure time comes they can not say anything about it not being their signature.

After all, look back in time. He have tons of vietnam computer tapes that are intact, readable, and real government records. But we do not have the software (hardware?) to read them. Maybe some banks are thinking of obsolescence of software, hardware, or both? So even though today you can prove the signature given time that will not be possible.

Right, wrong, I do not know. I only know that technology brings in more problems at the same time it solves them.

Waseem, I don't think all banks are shying away from them. I use Electronic Signatures and the only one so far that hasn't accepted it was HUD, for a HUD owned foreclosure. I've only been using Electronic Signature for about 2 months, but for about a dozen transactions the banks have been accepting them. Using electronic signatures has been a major time saver along with providing clean copies to all parties all over the country. It is now one of my favorite tools. I don't have any issues or concerns with it. My clients love it too. It's very user friendly.

I did a comparison on my blog of 2 providers Docusign and EchoSign. You can view it at http://www.GeorgiaRealEstateVoice.com. The CEO's of both companies made comments to add to the discussion.

Jen Bowman, Broker Associate
Success Realty
404-456-5024

Because they are new and misunderstood.

FHA has not yet approved digital signatures and, until they do, many banks and asset managers will not accept them. It’s very unfortunate, because digital signatures have the following advantages:

(1) They are the safest, most secure way to sign a document.

With modern digital technology, you can very easily create false “wet” signatures with any number of programs. You can use Photoshop or other similar programs to create false documents all day long. Digital signatures can be verified digitally, thus adding another layer of security not possible with “wet” signatures. And I know many couples who “wet sign” for their spouse.

(2) They are fast.

I can have a purchase agreement prepared and fully signed within 30 minutes even if my clients are 50 miles away. I email it to them, they read it, then sign digitally. I have it back in minutes. It comes back in .pdf format and is easily packaged into a crystal clear offer that I can email to a seller’s agent.

(3) They are convenient.

I have many clients out of town – even out of the country. Digital signatures make it VERY easy to process documentation.

(4) They are clear.

You can easily tell who signed and the documents are still first-generation quality. We hate dealing with documents that have been faxed a few times. They are unclear and often add confusion to the process. Using digital signatures from providers such as DocuSign keeps everything clear all the time.

DocuSign has been working with the FHA to get digital signatures accepted. I talked to DocuSign officials just last week and they assured me that they are working hard to get full industry acceptance for digital signatures in the near future. In the meantime, we use them for almost everything and, when wet signatures are insisted on, we simply have our clients sign beside the digital signatures that are already on the page.
http://www.docusign.com

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