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Old 04-28-2015, 08:27 PM
 
6 posts, read 13,420 times
Reputation: 10

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Hi,

Making a long story short, my closing costs on a home purchase mortgage were 4500 (rounding the number). The seller offered to pay 5000 which, for reasons that may not be relevant, ended up being more than my closing costs.

At the closing, the attorney presented the seller and myself were presented with and HUD showing settlement charges to borrower of 4500 and seller credit of 5000. We signed the "acknowledge of receipt of settlement statement" and finalized closing. I gave them a cashier checks roughly 1,000 more than my total closing costs (i wasn't sure of the final closing figure so i made the check for more than what i expected closing costs would be) and the attorney told me that he will write a check in turn to return me the excess founds.

I got a call today from the closing attorney office telling my the the HUD changed. He said that seller credit can not be more than my closing costs so seller credit was adjusted to 4,500 and they are taking the additional costs from the money i gave them at closing.

What worries me is that he got the new, updated HUD and just took the signed "acknowledge of receipt of settlement statement" form from the closing and just added it to the file.

Im fine with the issue of seller credit can not be more than closing costs, that's not an issue. What im not ok with is that he did not presented me the new HUD and i never signed acknowledging the new HUD. It seems to me arbitrary and even illegal that he took the signed form we used at closing and just added it to the new hud and finalized the process.

Everything is done now, the house is already at my name. From your point of view, is there any actions i could take against the closing attorney from having done this?
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Old 04-29-2015, 10:03 AM
 
4,548 posts, read 11,571,138 times
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It baffles me that every page of the HUD is not signed or initialed.
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Old 04-30-2015, 07:55 PM
 
Location: MID ATLANTIC
7,609 posts, read 17,682,742 times
Reputation: 8107
Quote:
Originally Posted by energumeno View Post
Everything is done now, the house is already at my name. From your point of view, is there any actions i could take against the closing attorney from having done this?
Is there anything you can do that will change things? No. Can you complain to someone to feel better, yes. See, the title company knows you have to agree to the changes. You signed an agreement to assist with any errors, so that is the momentum they used. However, those corrections do not supersede basic, common courtesy. The mortgage company was complacent, too, and someone from there should have certainly called you. The title company was acting on their instructions. You can contact the CFPB and file a complaint, but they regulate lenders, not title companies. You can contact the title insurance company that you obtained title insurance from (page 2 of your HUD 1). Be sure to identify everyone you complain to that you acknowledge you were required to sign the corrected HUD, but you were not afforded the courtesy of reviewing any documents, they just helped themselves to your signature page of the HUD I. Feel free to post on Yelp or on their FB page, but always be sure to acknowledge you realize you had to comply, it was the way they made the changes. (You don't want to defend yourself against libel).

This was badly handled, you should never be made to feel you didn't have a choice (even if you didn't). This is exactly why lenders and title companies are facing serious changes on August 1 and your story reaffirms the need for change.
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Old 04-30-2015, 08:17 PM
 
Location: Austin
7,089 posts, read 16,946,137 times
Reputation: 9522
That is very common. You sign a signature page, not the actual HUD. Within your closing documents, you agree to correct anything that was done in error so they corrected it for you, and told you about it. Nothing wrong with it. Happens all the time that numbers change after the final signing, if it's immediately. It shouldn't happen days, weeks, months, or years later... Just for the final funding when they do a last review of the paperwork.

And your agent should have caught it, and so should have your loan officer. Seller contributions can never be more than your closing costs.
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