The mortgage industry is constantly in flux, with closing often requiring multiple sets of documents, long turnaround times, and the likelihood of error occurring. It is essential to have a plan for dealing with any missteps and missed terms that arise during the process. The problem of a term from an earlier set of documents appearing in the final document requires special consideration.
In this context, a corrective addendum may be the answer for dealing with the missed term. A corrective addendum is a document used to address an unanticipated or incorrect part of a contract or deed, and can be used to avoid legal penalties. It is important to consider whether a corrective addendum is needed during the origination process, and that it should be drafted carefully with the help of an industry professional. A corrective addendum should include specifics such as actions to be taken, affected parties, and the date of the agreement. Taking the time to carefully draft and review a corrective addendum can ensure that any errors or missed terms will not impact the rights or benefits of either party to the agreement.
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