Payoff numbers wrong on HUD statement (refinancing, loan, closing)

[danmark]

We recently refinanced and when we tried to collect the escrow from previous lender, we found out it was about $600 less because title company listed wrong payoff number. Instead of a refund of $2300, it was approx. $1600. When we called the title company, they said they made an error on payoff numbers, but didn't call us. Instead of a cash outlay of approx. $100 to close, it cost approx. $700 cash outlay. If we'd known the correct total cost of refinancing, we may not have refinanced at all. I want a refund of $300 fee charged and I'm asking for a corrected HUD settlement statement. Do you think I'll get the fee refunded and what are the ramifications for the Title co.?

[jwiley]

I understand it can be frustrating that they made an error, but mistakes happen, and from the sound of it you actually owed the money on your previous loan, so while your cash outlay is higher then you expected you actually paid down the loan amount by $600, you did not spend that much more on closing costs as it was money you already owed to your previous lender. nobody in the current transaction has control over the payoff on your previous loan.

Now my question is if the new loan was worth less then $600 over the next 30 years then why are you refinancing? If it was that close to breaking even then you should not be wasting your time.

As for getting a corrected settlement statement, they should provide that, but I doubt you have a leg to stand on with the $300 closing fee.

[danmark]

I feel it's more a moral issue..since perhaps we would have decided NOT to refinance at this time, but wait for a better deal. We went ahead and made decision to close, since the cash outlay was so low. But in actuality, it was approx. $700 and although we owe that, it wasn't made known to us until a week later. And they never called us to tell us about the error. To me, it took away our decision as to whether or not we wanted to refinance at this time. So all we ask for is a corrected statement and complain to the company about their errors.