No e-Signatures by Banks is Slow as Molasses
I'm a big fan of electronic signatures. This excellent and timely technology has saved me and my clients countless hours, paper, drive time and potential errors. My story is about a recent transactions that had we been allowed to use e-signatures the entire process would have been smooth, efficient and timely. Instead it was cumbersome, problematic and just a plain slow as molasses transaction.
My client had made an offer on a bank owned REO property. We knew the home was priced well, in an excellent area of town and in optimal condition. Knowing this we also knew that multiple offers were likely forthcoming. We crafted a smart offer and wet signed the contract. I was scheduled for a needed vacation and set out for a lengthy road trip. I planned accordingly and made sure I was somewhat mobile for this client and others at different stages of their transactions.
While away I get the call that the REO bank has countered slightly, the agent needs a response ASAP 
because other offers are forthcoming..go figure! No problem, please just email me in PDF and I will upload to an e-signature format. He then says the REO bank will not accept anything but WET signatures. We call them wet signatures but in reality what we are providing is a COPY of a wet signature, not the real deal right? Regardless the bank says no. There are also documents needing my signature. I am mobile yes, but I do not have a viable scanner/printer option. The listing agent is also traveling and away from his office. So instead of a simple, clean and straightforward e-signature option I now I have to jump through hoops to find an office supply center to print the document so I can sign, then have them scan it and drop it onto a thumb drive. I then can email the document to my client for her signature. My poor client does not have a home printer or fax, so she too must find a printer source, print, sign then fax to the other agents office who in turn must scan and email to him. The process is SLOW AS MOLASSES and my client and I are feeling the pressure of a competing offer. The REO bank accepts the offer but contingent on an array of addenda and disclosure..standard procedure yes, but guess what, they want it all in their archaic WET format. So both myself, my client and the listing agent had to go through this agonizing dance just to appease a bank that is apparently out of touch with today's technologies.
The entire contract, counter and addenda could have easily been handled within an hour using an e-signature solution. Wake up corporate America and Banks, e-signatures are an excellent, safe and reliable tool for getting these short sale and REO transactions moving through the system. Take heed and implement the obvious so you can be Lightning Fast NOT Molasses Slow!
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John McCormack Owner/Managing Broker, e-PRO
505-980-4576 / John@AlbuquerqueHomes.com
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Hi John,
I too like the e-signatures.....speeds up the process........I agree the Lenders needs to change their ways.
What gets me is Agent's on transactions w/o a need for lender approval unwilling to try when I present electronically.....Change is Good!
I love electronic signatures, but they are not accepted by all lenders. They can help speed up the process though. I think I'll write a blog about that. :)
John- I've never understood why the REO properties seldom accept electronic signatures. They in my opinion are better all around. As you said, saves time, paper, and errors. Suggested!
Exactly what happened to me on a short sale listing of mine - bank says they need wet signatures. Brother. BofA allows them now, but you do have to submit a document first.
In this day and age, it is ridiculous, John. Why don't we have a standard that all of them adhere to.
Banks need to get on board for real...my office does NOTHING without electronic signatures unless necessary. I can't see in this day and age why one would not invest in it. Have many folks overseas or out of state who love the fact that an initial can be done within minutes and not have to come into an office..which is time consuming for many and inconvenient.
Thanks, John, for sharing this story. Many lenders need to take a close look at the antiquated procedures required by their asset managers.
Have a great day and an outstanding weekend.
Chihuly Exhibit, Virginia Museum of Fine Arts
So are you trying to tell us we need to invest in the portable printer/scanner? Oh, the joy of the mobile office - I wouldn't trade it but it does have some limitations. Funny not in haha how the lenders won't accept the eSign but all the big banks push for you to bank electronically.
Reading the comments I had to laugh - Teral #8 nailed it - the banks won't take electronic signatures but push everyone to do banking electronically. Just doesn't make any sense to me.
John - not the best way to start your vacation! It always seems that the banks call the shots and it's always in thier favor.
John, Dealing with banks and REO - UGH! Hate it. Why can't they work with us instead of against us. What a wonderful world it would be....
Hi John - I suspect that somewhere in the banks' reluctance to accept e-signatures you'll find some attorney's opinion regarding the potential for fraud, and I don't think the technology has come quite far enough to overcome that yet. But progress is being made and the walls are crumbling - it probably won't be too much longer.
An electronic signature without a doubt can help speed up the process.
John
I continually find it is the worst banks that do this both in their REO's and dealing with them with a SS. Many of the banks here will allow electronic signatures but will wet a wet copy which can be signed with closing documents. cheers cvc
John, surely one day everyone will get on board and accept e-signatures as authentic signatures. I know how frustrating that is having to do it the old way.
John-That just makes me uneasy reading about it. Good thing you're resourceful! Most agents, on vacation, would have been paralyzed. Well done.
I feel ya John. Electronic signatures are the way to go. When you want a signature ASAP, it just seems logical that one would accept these..hopefully banks will get on board with e-sigs soon!
John - I don't understand the bank's position on REO's and shorts sale having to have copies of "wet signatures", but I'm guessing this is fall out from the robo-signing lawsuits. It's time for lenders to smarten up, if a fax signature will do, isn't it time to accept electronic signatures? SUGGESTED
Banks take their time on short sales and REOs since it is some paper pusher who does not have any financial stake in getting the job completed. It is a shame that these transactions are allowed to take so long! Great post! Recommended for a feature.
John -- it makes absolutely no sense - they want urgency - they want it now - yet no electronic signatures. It's definitely a "what's up with that?" moment.
Hi John, One can only wander when REO and HUD will start allowing electronic signatures and initials. You can certainly lose out on a deal that moves as slow as molasses.
John,
The banks are undergoing major scrutinity by the government, so that they are covering their proverbial butts, every which way, and thus in fear they are a royal annoyance and a pain...Sorry to hear of your trials and tribulations, hope this all smooths out for you and you close soon. ?a
John, I feel your pain...I just had to go through this same scenario...the bank not accepting eSignatures. Anyway, I got it done, but I wasn't traveling like you, however, all you had to do was visit my office when you were in Alabama and I would have given you full access to computers, printers, scanners, coffee and conversation.
John -- just imagine how much more problematic it would have been if they didn't accept anything except wet signed or FAXes. Recently ran into couple companies who would not allow scanned/emailed docs -- they had to be faxed. Talk about antiquated (and hardly legible)!
Have a fantastic weekend!
John,
Good entry into the Challenge and your story is probably worst than mine as I was not on vacation. I hate to say but Banks are usually the last to adopt technology which replaces things like wet signatures.
The bank wants to do everything on their side of things using the latest technology but if it helps you....not so much. :)
Kinda sounds like this bank didn't cross the bridge into the 21st Century. It is unfortunate and causes everyone else involved time, money, and unneccesary grief.
It is shocking to me that banks still don't accept electronic signatures. Nice post!
Ugh, John. It is hard to believe banks aren't with the times. Perhapsother banks are more up with the times. Guess we should be glad the bank is solvent.
Enjoy the weekend.
John, I think the banks should get on the bandwagon and come into this century to use electronic signatures! After all, the government approved them!
I've got the buyer for a HUD listing right now. All signatures have to be original and in blue ink...you know the drill. Well the buyer is out of town and there was quite a bit of traveling to get this all worked out, but we did it. Why can't the banks and asset companies get on board with using the technology we have at our fingertips these days? It's really amazing, but not in a good way how these companies operate.
John, I would have to believe that banks will allow e-signatures eventually. It is a problem when we work short sales as well. I would think that a low of that has to do with their ro-bo signing issues, and over thinking the issue.
John,
I know what you mean! The ironic thing is that I have seen bank offers come to us signed with a stamp not an official wet signature either!
Sure wish they'd get with this great new technology!
Hi John. Such a sad commentary on banks. We have to keep hammering away at them. HUD and others allow e signatures.
Good Morning John, I think it is more of the listing agent not understanding what the ban will or will not accept. I list and sell A LOT of bank owned homes and my policy is always to email contracts and addendums as a PDf, the buyer signs and initial and the agent scans as a PDF and emails it back tome which I upload into the Banks system. It is not a true electronic signature that they can just type or initial their name, but is a copy and not an original. Banks have barely enough help to complete what they are dooing now nevermond change to a new system that more people will mess up. Using pdf is the next best thing and beats over night mail or having to drive to pick up originals. Have a great Saturday.
John, Esignatures have just been approved to use in NY so we don't know yet how this will impact our business, but know that it must work reading about its success from others on A/R...
Amen! If banks realized how easy it is to forge a "wet" signature vs. the tracking and verification that esignatures employ, they would start to require esignatures for ALL deals!