As a note investor I make use of mobile notaries all the time. Some people don’t use them because they don’t want to spend the extra money, but I have found them to be well worth it. Basically a mobile notary is just a notary, but one that can meet your borrower at any place and any time. I’ve used them twice in the past week so I thought it make a good subject for a newsletter.
What you can use them for
I’ve used mobile notaries most often for having borrowers sign a cancellation of land contract or mortgage. I’ve even used them to do cash for keys and sent them the funds to pass on to the borrower. You could have the borrower go into a bank or find another notary, but that requires work on their part. They may also have busy work schedules and kids which make it difficult for them to find time to do that. If I have a borrower who wants to cancel a land contract I don’t want to require them to do anything other than sign. Adding complication just increases the possibility that they flake out and provides more time for them to change their mind. I just ask them when and where they want to sign and then I make it happen with a mobile notary.
Costs
I’ve found a lot of variation in costs for a mobile notary. I typically pay between $40 and $70 for them to do it during business hours, although I’ve been quoted as high as $150 (I passed on that one). Many notaries will work 24/7, although you can expect to pay more if they need to meet after hours. Some of them also charge by the size of the document. Mine are pretty simple 2 page docs with one signature from the borrower. If you were originating a loan and had a big package that could cost a lot more.
My process
Here is an outline of the process I used recently for getting 2 cancellation of land contracts signed:
- Call / text the borrower and ask them when and where they want to sign. This can take multiple attempts…
- Get on Google and find a mobile notary who can do it at a reasonable price.
- Email the mobile notary the following:
- Soft copy of the document to print and have signed
- Time and place to meet the borrower
- Borrower’s name and phone number
- A FedEx label to return the signed document
- Include any special instructions for signing if needed
- Call the borrower back and confirm the notary will show up, give them the notary’s contact info, and remind them that they will need a photo ID when they meet the notary
- Put the notary’s contact info into Pipedrive so I can call them next time I need a mobile notary in that city and don’t have to repeat the Google search
Note that this process involves me getting on the phone with the borrower. Borrower outreach is an entirely different subject, and you should tread lightly with doing that unless you understand some specific laws and rules. You can have your loan servicer handle this as well, but I find things go much faster and smoother if I do it myself or have my assistant take care of it. For example, I had a servicer who said they had been trying to contact a borrower for a few months without success. I decided to call them myself and I had a cancellation of land contract signed 2 days later…. Over time I will be bringing more and more activities that loan servicers often handle in house. Using a mobile notary may cost me a few extra bucks and require some coordinating, but I think the improvement in the velocity of my deals and the outcomes makes it well worth it.