Urgent-Will it hurt me to sign an incorrect closing disclosure?

Question

I'm supposed to close on a house on Wednesday. My lender sent me a disclosure this afternoon (Friday) saying they need it signed and returned before midnight today to be able to close on time.

The problem is that the disclosure has a small mistake in it, in that it shows I'm going to be paying for a home warranty when actually the seller is going to.

They say they'll fix it Monday, but they need me to sign it today (even though it's wrong) anyway so that they can comply with a three-day federal requirement about lending disclosures.

Should I sign it?

Wayne Brooks · Answer

Simply make a correction on it, initial it, sign it.

Melissa Gittens · Answer

@Charles Jessup make the correction and initial, date and sign the document.

Charles Jessup · Answer

Update: I signed the disclosure.

My reasoning was as follows:

1. The lender said that it wasn't a big deal, that the home warranty section can be changed within the three days, just not the loan terms.

2. My real estate agent said the same thing, and I trust him more. He also promised to make sure they correct it first thing Monday.

3. The contract that I agreed to with the seller said they paid for it, and I believe that trumps a lending disclosure.

4. Not signing could lead to re-doing the closing date, which doesn't benefit anyone involved.

I hope this doesn't come back to bite me...

Jay Hinrichs · Answer

@Charles Jessup its probably after your drop dead time.. but make sure your contract does not have a end date and if you have to redo the 3 day your not out of contract and the Seller is miffed and won't close.

lots of this going on right now with this 3 day stuff..

Charlie Fitzgerald · Answer

If you sign it as is, you are stuck.

Charles Jessup · Answer

Good Idea @Wayne Brooks. I'm not sure I can though. It's an electronic document, I can only click on the line to sign my name.

Rebecca Zadell · Answer

I wouldn't. The CFPB initiated the 3-day rule specifically so that borrowers would have a chance to find, and correct, errors before closing, as well as find out about changes to the terms of the loan.

Urgent-Will it hurt me to sign an incorrect closing disclosure?

Urgent-Will it hurt me to sign an incorrect closing disclosure?

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