Pay off late…closing agent dishonest…RECOURSE? - Posted by Krista (WA)
Posted by Krista (WA) on November 24, 1998 at 12:22:47:
I haven’t posted in quite a while… been busy with our other business for the last couple months. My husband and I recently refinanced our home. I found out yesterday that the payoff was a day late, and because of that (it’s an FHA) we paid an extra month’s interest (over $500!). Nothing was ever said to us about it. The closing statement we signed shows the proper payoff, but the one mailed to us (the final) shows the higher payoff, but with no explanation. I found it on accident. I have included my documentation over the past day and a half below. I apologize for the lengthiness, but I’m trying to be thorough. My question is, does anyone know if I have any recourse against the closing company or the new lender/loan officer? If so, any suggestions on how I should proceed from here? I don’t particularly want to confront or deal with the closing agent anymore, because I think she will try to solidify her story better. I don’t know who to trust if I ask to speak to someone above her. I don’t even know if I should trust my loan officer to be completely honest with me. I’m fairly certain that there is a cover-up going on (or at least there was until it was clear I wasn’t going to give up), I just don’t know who all was in on it. When the borrower is told that we will close by a deadline, and understands that deadline is going to be met, is there any accountability on anyone’s part to meet that deadline???
11/23/98 -Called closing agent to find out how to get 2nd half prop taxes back since, as I remembered, it had been held by Closer AND I recently found out through a statement from my previous mortage co, had also been paid by Principal Res. Cynthia told me, after pulling my file, that it looked like she had just ?held? it back, and once it was confirmed that it had been paid, it went to reduce new principal w/ Chase. That amount, she said was 251.87. I wrote it down.
I hung up and realized that the amount for taxes was 535.66, not 251.87 as she said, so I called back. She said that no, the 251.87 was what was due back to us, but since we couldn?t recv funds at closing with this loan, that it was applied to our new principal w/ Chase. She told me that the taxes were 535.66, and that was never included in the total funds disbursed, only that she had to show it on the settlement as Held out in case it had not been paid yet. I thought I fully understood now.
I hung up and noticed, after adding the totals that the tax figure WAS included in the total on the estimated settlement statement. I found the ?final? settlement statement that was mailed to us. I wanted to make sure that the total loan amount (payoff plus settlement charges) was reduced by the taxes amount on the final statement. The totals on the two statements are identical. HOWEVER, the settlement charges were increased from 2,817.92 to 2,819.01 I looked to see that that was due to an increase in line 811 ?Principal Reduction/New Loan to Chase Manhattan Mortgage.? I don?t know what that is for, or why it was different on the new statement. I then realized the payoff to Principal Res was increased from 92,249.42 to 92,783.99 This didn?t make any sense to me. The Taxes line 107 was blank on the new statement, but because of the increase in the other two figures, the total was still exactly the same. I then looked up the notes I had taken when I called to find out what our payoff amount would be when we started the refi process. My notes showed that the payoff would be 92,211.97 if paid by 11/1. So I called Principal Res to find out why the payoff was so much more than quoted by phone. The rep I spoke to, Linda, explained that because the closing co failed to fund by deadline 11/2 at 2pm, we were charged an additional month?s interest! She said she would not be very happy if she were me, and that the closing co was well aware of the deadline and that it was strange that nothing was said to us about missing it. I AGREE! VERY STRANGE! Why wasn?t it funded on 11/2, as planned and agreed to, and as we understood that it would be. Why was nothing said to us when it wasn?t?
Also, if the new principal w/ Chase was reduced by 251.87, I can not find anywhere on the statement where that is noted. However, that does happen to be the exact amount of the Title insurance. Where did this figure that Cynthia gave me over the phone come from?
I called back to speak w/ Cynthia again. I was told she was on the other line, would I like to leave a msg? No, I said I would try back shortly. I called back 4 to 5 min later, and was told she had left for the day. I thought it odd that she had left that quickly (at 4:22pm), and wondered if she realized I was figuring this out, and wanted to avoid me until she got her story straight. I left a msg for her to call me, and then called our loan officer Katy, to see if she could shed any light on the situation. She said that it was her understanding that we would be funded on 11/2, and that because we signed on 10/27, we should have funded on 11/2. She said she would call Cynthia to find out what the deal was first thing in the morning.
11/24 ? Cynthia called at 8:11am and left a msg saying that she should have pulled my file yesterday when I called. She said that she pulled it now because I left a msg to call her, and she wanted to pull it and see what the problem could be. Now that she was looking at it, she said, there was a note in my file regarding the payoff. She said that because they did not recv the funds from Chase until 1:30, they did not get it in time to wire the payoff to Principal the same day because they are 3 hrs ahead of us. She said that when they tried to wire it at 1:30, it was after 2pm at Principal, and so they added another month?s interest to the payoff. So that is where our refund (presumably of the taxes)went ? to our underlying mortgage instead of to our new principal w/ Chase. She ended her msg with ?So I thought you should know that?? She?s right, we should have known it when it happened! And if she supposedly didn’t pull our file yesterday when I called, where on earth was she getting the information and figures she was giving me?? This is one big cover-up, for a series of dishonest decisions regarding our closing? obviously originating from SOMEONE messing up and not getting it paid in time.
Thanks in advance, to anyone who made it all the way through that and cares to respond!