I just sent the following note to all my clients. You may want to warn your clients of simliar complications that could take place at their closing depending on the rules in your state as to what forms of ID are valid...
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Dear Friends,
I’m writing to you because you have a closing coming up in the next few weeks. After a very nerve-racking and time-consuming closing lasting more than 5 1/2 hours yesterday involving one lost driver's license and an incompetent processor at Wells Fargo, I feel it's necessary to advise my clients of the following:
Please, carefully safeguard your driver's license as it is nearly impossible to close on a house without it.
Other acceptable forms of picture ID for closings (in the State of Wisconsin) are 1.) a valid passport, 2.) a picture ID issued by the military, or 3.) a picture ID issued by the State of Wisconsin. If you’ve lost your driver’s license, have never traveled overseas, have not worked in the military and have never been employed by the State of Wi, your closing could become disastrously complicated (read on for details).
Depending on your circumstances (out of state license, lack of other picture ID) and the time of day, it can be nearly impossible to get a replacement copy of your driver’s license the same day you discover it is missing.
The title company you are working with can refuse to accept a copy of your driver’s license. In the event they are nice enough to do so, it can be hard to get ahold of a copy of it.
You may have provided a photocopy of your driver’s license to your employer, however in the State of WI they are obligated by law to destroy this document within a few weeks for your own protection/security.
Your bank will most likely have a copy of your driver’s license but may be unwilling to give out the photocopy of the document they have on file. Moreover, a photocopy of a photocopy is unlikely to be of sufficiently high quality for the bank’s processor to accept. You may not be able to get around this by scanning the photocopy the bank has on file. In this case the bank refused.
H&R Block and other tax preparers may have a copy of your driver’s license on file but during “off season” their offices can be closed during what’s considered normal business hours. In this case we were informed they were only available by appointment (this was in the middle of the day on a Friday!).
For your own protection, please photocopy your driver's license and store at least one copy at work as well as at home (a bank safety deposit is also a good place if you have other valuables).
If you do not have your actual driver’s license for the closing the title company may be able to get around this if and only if you have a clear copy of your driver’s license PLUS another form of picture ID that has both your name and photo (in this case a student ID was acceptable).
Never, ever store your driver's license in a loose pocket - always put it in your wallet no matter how many times you have to take it out of your wallet for airport checkpoints, etc.
If you are unable to close on schedule your loan application has to be resubmitted to your lender and may not be approved (especially these days as credit is getting tighter by the minute). Also, if you resubmit your loan your rate lock automatically expires so you will not be guaranteed the same rate even if your loan is re-approved. If you cannot close on schedule the seller may hold you liable for damages and may try to keep your earnest money or sue you for specific performance.
Who knew a little document like a driver’s license could be so critical to buying a house? Please, carefully safeguard this document and protect yourself in the process.
Best regards,
Jolenta
Jolenta E. Averill, MBA
Broker, GRI, ABR, e-PRO
Bunbury & Associates Realtors
(608) 230-5553 (direct)
(608) 628-9701 (cell)
(608) 310-5771 (fax)
Email: jolenta@jolenta.com
Visit: http://www.jolenta.com
Expert Service. Exceptional Results.
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