Broker Uses Wrong Pay-off Amount for REFI

[ryba]

What is the name of your state? Ohio

I just refinanced my home mortgage on June 30. The title company called today stating that they received a notice from the mortgage company that they underpaid by about $500 on the pay-off amount. The title company rep claims that they had an inaccurate pay-off amount from the broker. He wants me to pay.

Isn't this the responsibility of the broker. Didn't I pay them to do this. What course of action should I take?

thanks.

ryba

 

[HomeGuru]

What is the name of your state? Ohio

I just refinanced my home mortgage on June 30. The title company called today stating that they received a notice from the mortgage company that they underpaid by about $500 on the pay-off amount. The title company rep claims that they had an inaccurate pay-off amount from the broker. He wants me to pay.

Isn't this the responsibility of the broker. Didn't I pay them to do this. What course of action should I take?

thanks.

ryba

**A: are you saying that the title co. did not get a current payoff figure from your old mortgage lender?

 

[ryba]

Yes, that appears to be the case.

Details:

The escrow account was underfunded b/c the mortgage company did a reassement of the property taxes. Taxes were paid on June 22 to the county out of escrow resulting in a negative escrow balance.

The brokerage company apparently did not take that into consideration (they called before that took place, prior to June 22) and it was never verified before the payoff of the old balance.

I've contacted the broker, but they are apparently gone until Tuesday with Independence day approaching. The title company has said they are taking care of this today and expect me to foot the bill. I basically told them that my broker should be held responsible.

 

[HomeGuru]

Yes, that appears to be the case.

Details:

The escrow account was underfunded b/c the mortgage company did a reassement of the property taxes. Taxes were paid on June 22 to the county out of escrow resulting in a negative escrow balance.

The brokerage company apparently did not take that into consideration (they called before that took place, prior to June 22) and it was never verified before the payoff of the old balance.

I've contacted the broker, but they are apparently gone until Tuesday with Independence day approaching. The title company has said they are taking care of this today and expect me to foot the bill. I basically told them that my broker should be held responsible.

**A: both your broker and the title co. messed up but guess who is liable for payment? Yes, you. Happy 4th.

 

[ryba]

I guess title insurance doesn't include a clause for dealing with stupid people...

happy 4th. I'll try to make it the best "stress reduction" phone call ever when I get ahold of the broker, to make the $500 worth it. And then a call to the BBB will also ease the pain. Who knows, maybe they'll crumble and pay it.

-ryba

 

[HomeGuru]

I guess title insurance doesn't include a clause for dealing with stupid people...

happy 4th. I'll try to make it the best "stress reduction" phone call ever when I get ahold of the broker, to make the $500 worth it. And then a call to the BBB will also ease the pain. Who knows, maybe they'll crumble and pay it.

-ryba

**A: read your escrow instructions.

 

[ryba]

Yes, it basically says I agree to pay off the old loan (charges known to borrower) or taxes, etc... Even if a mistake is made.

But the broker (to whom I paid lots of money) should be competent enough to figure out these amounts.

I'll wait and see...

 

[HomeGuru]

Make offer to split it down the middle.

 

[amortgageman]

Read your Errors and Omissions Statement.

 

[ryba]

The only document that resembles an errors and omissions statement is called:

"Document Correction and Fees Due Agreement"

Which basically says that I have to all closing costs associated with the loan, including outstanding escrow items for taxes and assessments.

This was part of the packet we signed with the closing agent. I don't recall if we signed anything between us and the broker.

Ironically, we are refinancing with the same lender. The lender prepared these documents as of 6-25-04. This was three days after the the same lender had made the tax payment. I guess this looks like an oversight from the lender that then sent this to the broker, who then sent it to the title company. Why do we reward people for their mistakes!

 

[HomeGuru]

The only document that resembles an errors and omissions statement is called:

"Document Correction and Fees Due Agreement"

Which basically says that I have to all closing costs associated with the loan, including outstanding escrow items for taxes and assessments.

**A: No, I believe the clause states that you must PAY all closing costs..........