HUD-1 modification AFTER closing

[wailea]

What is the name of your state (only U.S. law)? Florida

We refinanced our home 10 days ago. The GFE showed that we were owed $161. However, at closing (which took place in our home), the title company assured us that we were actually owed $468, the actual amount that is on the settlement statement/Hud-1 that we signed that day.
I just received a check for $161 instead of $468. After getting back to the company, they just emailed me that we were presented with the wrong documents at closing, and to sign the new enclosed Hud-1 docs.
Is that even legal? This is not what we signed. Aren't they bound to honor what was agreed upon at closing? What are my recourses?

Thank you!

 

[justalayman]

No, it is not illegal and in fact, it may not be an issue. First, a corrected HUD 1 must be distributed within 30 days of closing. They're good there.

Then, there is a tolerance allowed when making corrections. If that tolerance is exceeded, then the lender would be required to reimburse you the amount beyond the tolerance limit. They must also make that payment within the 30 day window, if applicable.

the only thing left is determining if the change exceeded the tolerance limit. For that one, I am researching how it is calculated.
Have you contacted the lender, the closing agent, or your real estate agent concerning this?

 

[wailea]

Thank you for responding.

I contacted the lender, who got in contact with the title company. The title company then emailed me the Hud-1 they originally meant for us to sign. The $300 discrepancy comes from the loan amount, which was apparently modified. If we signed for a specific loan amount, can they go back and change it?

 

[OHRoadwarrior]

Thank you for responding.

I contacted the lender, who got in contact with the title company. The title company then emailed me the Hud-1 they originally meant for us to sign. The $300 discrepancy comes from the loan amount, which was apparently modified. If we signed for a specific loan amount, can they go back and change it?

Generally a consumer contract contains provision for amendment in the case of genuine accounting errors. Read your contract.

 

[justalayman]

that has nothing to do with the HUD other than the HUD is a recording of the data. The loan you signed for is what you signed for. Nothing on the HUD will or can change that.

So, does the actual loan amount match the greater or lesser of the numbers listed?



what line is the issue reported on (on the HUD 1 form)?

 

[wailea]

The greater loan amount is the one we signed for, line 202.

 

[justalayman]

I believe it will be simpler to let you read this rather than attempting to post it:


http://www.digitaldocs.com/pdf/hud1.pdf


scroll down page near the bottom of page 22. They describe what cannot change, what can change by up to 10% and what can change any amount.