Home Buying in 95819>Question Details

Minjeong Kang, Home Buyer in Sacramento, CA

Is Electronic Signature Possible for Offer Submission?

Asked by Minjeong Kang, Sacramento, CA Thu Jul 5, 2012

Hi, my realtor insists that I have to print out all the offer documents that he prepares for me and sign or write my initials, and scan them back to him as email attachments. This process has been really cumborsome. My friends do electronic signatures for thier offers. But my realtor said if I do electronic signature, bank will automatically reject my offer. Which one is true? I would greatly appreciate your response.

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17
I generally don't try to update older questions with newer answers but in fact, Fannie Mae now accepts electronic signatures on REO property offers. Generally speaking, so goes Fannie... so eventually goes everyone else though did just today have Ocwen turn down electronic signatures.
0 votes Thank Flag Link Tue Jul 2, 2013
On Foreclosures, yes this is the case. They banks want wet signatures. Short sales sometimes demand the same thing. Here is the irony of all of this. You admit to having to sign but the banks gave into a law suit admitting ROBO SIGNING. Does not seem fair does it. A standard sale there is a difference. I talked to a friend of mine who is high up at a large bank and told him about this. He has a great sense of humor. He laughed his ass off and said at what point do I think the people make the rules and not the banks. I explained we do every day we decide to make or not make a payment. He said I will bet you will wet sign your contract if you want the property.

Harold Sharpe - Broker
So Cal Homes
(951) 821-8211
harold@socalhomes.biz
http://www.socalhomes.biz
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Sun Jul 8, 2012
I totally agree that only offers with wet signatures should be submitted to lenders. While there are some that will accept electronic signatures, it's just not practical to keep a list of lenders that will accept them. Sure, I will be ok with electronic signatures in multiple offer situations, but I will still require wet signatures before I submit to the lender. I will also accept electronic signatures for documents that I don't have to submit to the lenders. I had a negotiator who had my seller rewrite the date. He was a serviceman and he wrote the date with the day of the months first, then the month and then the year (e.g. 7 JUL 2011). The negotiator would not accept it. Go figure. It's a battle not worth fighting.
0 votes Thank Flag Link Sun Jul 8, 2012
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
Like Elizabeth, we do both with our clients. Docusign to get the offer in and "wet" signatures for submission to the bank or lien holder.
0 votes Thank Flag Link Fri Jul 6, 2012
There are some banks - Union Bank for example - who do not accept digital signatures on any transactions, and most REO properties require "wet" signatures. If the property is an REO just do what he/she asks. If not, ask your realtor why.
0 votes Thank Flag Link Fri Jul 6, 2012
Seriously? You think printing and signing a contract is too much trouble?

Okay, here’s the scoop, as a lender I could care less, you could send an email for all I care, I remember financing a home a long time ago where the agreement was handwritten on their kid’s school paper. However, FHA, Fannie and Freddie will not accept eSignatures, so I do not accept eSignatures.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Fri Jul 6, 2012
Some sellers will not accept e-signatures and neither will some lenders, maybe that is what you are dealing with?
0 votes Thank Flag Link Fri Jul 6, 2012
Both are correct. If you're buying a foreclosure property owned by a bank most don't accept digital signatures. (Another example of just how backward and ridiculous most banks are) Digital signatures are legal in all fifty states and Washington DC and have been for a couple of years now. (The Uniform Electronic Transaction Act) Nonetheless you're wasting your breath trying to speak with them as their stupidity is typically only outdone by their arrogance. If your agent is telling you that you need to actually initial and sign and then scan them and return them to them my advice is to listen to them.

On the flip side your friends are also correct and any standard transaction between a buyer and seller can absolutely be done by e-signing using anyone of a couple fo approved digital signature programs. (DoucSign is probably the most best known) It may also be that your agent hasn't invested in this program and this is why their forced to have you print them out and hard sign them before returning them. IF this is the case you might suggest that your agent look into investing in such a program as it really does make doing business much easier for everyone involved. Interestingly enough the very same banks that often refuse to accept digital signatures on foreclosures their selling have absolutely no problem with digital signatures as long as their not a party to the transaction. Go figure.

Best wishes on your new home.
0 votes Thank Flag Link Fri Jul 6, 2012
Hi Minjeong, Your realtor is correct. If you submit an offer for an REO or short sale properties the chances are extremely high that your offer will be automatically rejected. The sellers or banks do not recognize e -sigs as a legal signature. They prefer wet sigs from the buyer in all cases. Unfortunately, the banks legal departments will not allow e-sigs in the event there was a dispute that had to be settled in court. As for your friend who is doing e-sigs, sounds like they are still looking as well. Perhaps there offers are not being considered because they are using e-sigs.

Please follow your realtor's advice and Good Luck!

Anthony Carrillo
Realtor at Cook Realty
(916)833-6266cell
acarrillo@cookrealty.net
0 votes Thank Flag Link Fri Jul 6, 2012
"My Friends do electronic signatures for their offers."
You are at the very beginning of the purchase process and you are already second guessing the instructions provided by your real estate professional. If this is a bank owned or short sale, and the process will become increasingly complex and convoluted, you will very likely become the greatest obstacle to your success.

Please have a heart-to-heart with your agent.
STOP soliciting opinions from the internet.
DON'T allow uncle Bill or your friends to inject anecdotal advise that does not apply to your situation.

Best of Success to You,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, Fl
727.420.4041 - http://www.RealEstateMadeEZ.us
0 votes Thank Flag Link Fri Jul 6, 2012
I think Elizabeth hits the nail on the head. Trust your realtor to know which will work for that particular seller, or listing agent.

Not all lending institutions will accept electronic because of the recent legal challenges to their procedures. But Elizabeth, as a more experienced listing agent, accepts them during the flurry of offers, and obtains a wet signature of the selected buyer later (which is the only signatures the lender actually sees).

If at all possible, obtain the wet signatures. Trust me, if your realtor says wet signatures, they're making more work for themselves to get them from you, but working in your best interest.
0 votes Thank Flag Link Fri Jul 6, 2012
For efficiency, I do both for my clients. Due to the wild market in Sacramento right now, I use DocuSign to put my sellers "into contract," which allows me to immediately change the status in MLS and stop all showings. It can be a zoo with agents lined up in the front yard and a big inconvenience for sellers.

However, when it comes time to submit the offer to the short sale bank, absolutely, I obtain wet signatures. Some banks are stuck back in the dark ages and will not, under any circumstances, accept a digital signature. Bank of America is one of those banks.

When you hire a real estate agent, you should trust and rely on that agent's advice. If your agent tells you that you need a wet signature, you better believe it. None of us like to do things twice.

Elizabeth Weintraub
Broker-Associate #00697006
Lyon Real Estate's #1 Short Sale Agent for 2011
0 votes Thank Flag Link Fri Jul 6, 2012
Depends on the bank AND e-signature software. Most banks have not yet adopted e-signature. However, I found it greatly speeds things up when transmitting documents.

I look forward to acceptance of both Zip-Form and Docusign by all banks.
0 votes Thank Flag Link Thu Jul 5, 2012
I don't know about REO offers, but with short sales, the bank won't "reject" your offer. They will ask that you resubmit with "wet" or manually written signatures. Often, the listing agent may know in advance whether the bank will or will not allow wet signatures. Unfortunately, there is no set rule.

If your agent is asking for wet signatures I recommend you oblige. Although inconvenient, it won't hurt, actually may help expedite the process in the long run.

Hope that helps!

Keisha Mathews, REALTOR®
CDPE®, HRC®, HAFA® Certified
The Short Sale Lady(sm)
Century 21 Landmark Network
(916) 370-1803 cell/direct
(916) 405-3886 fax
keisha.mathews@century21.com
http://www.SheSoldItForMe.com
lic#: 01439130
0 votes Thank Flag Link Thu Jul 5, 2012
Minjeong:

I agree with what has been shared by both Kylee and Darrell.

Additionally, we ALL probably agree and wish this was not the case!

-Steve
0 votes Thank Flag Link Thu Jul 5, 2012
It depends. For private sellers, it probably doesn't matter to have faxed, scanned, or electronic signatures. But if the home is a REO or HUD, then most of these will require original signatures.
0 votes Thank Flag Link Thu Jul 5, 2012
Yes, this is true in many cases. Many lien holders in short sales, and banks selling an REO property, want "wet" or "live" signatures, no electronic signatures.
0 votes Thank Flag Link Thu Jul 5, 2012
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