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I don't know why I get thrown in these situations, but would like to hear honest opinions on what would do in the following situation:
Background:
- Finally closed on a foreclosure home. Escrow company had made multiple mistakes in the HUD, resulting in us having to sign docs 3 times (!?!?). Additional costs were incurred because my lock on the mortgage rate also expired a few times because of delays with the escrow company.
- After all is said and done, escrow company cuts a refund check in an amount much higher than they were supposed to (yet another mistake on their part - we're talking about a thousand dollars more)
- My agent calls escrow company and tells them they cut check for too much.
- Escrow company says they have cancelled the check and will re-issue for the right amount. This was 3 weeks ago.
- Escrow company sends out final HUD and shows no refund is expected for my account (!?!), and I definately over paid my final escrow payment anticipating that escrow will somehow delay the closing for a few extra days (which they surprisingly didnt).
Where we are today:
- Escrow company says our transaction is now closed and will not be reviewed any farther. What they have on the final HUD is final. This was over the phone.
- I went to the bank with the original refund check ... bank says there are no holds or cancellations on the check ... yet another mistake/oversight on the escrow's company's side?
What would you do? This company single handedly delayed closing for more than a month, made us incur additional expenses and we were still honest by telling them they issued a refund for too much. They say check was cancelled, but 3 weeks later, it is not and now they are saying they don't owe me a refund, eventhough I overpaid my escrow payments. HUD calcs still don't make sense. In the end, we were dealing with the VP of the company in Washington due to all the screw ups. They are not talking to us anymore .... cash it in and call it even?
I am totally convinced these guys accounting is so messed up that they have no clue as to what money is coming in and going out of their accounts.
I have dealt with this same escrow in another transaction ... I subsequently cancelled the transaction and this company didn't refund my EMD back until I called them up 2 months later. They said they forgot to process it. This is a major escrow company, and both times I was forced to use them due to seller being able to determine which company to use.
My agent is saying that since they are no longer talking to us regarding this transaction, go ahead and cash it in, and if they come back asking for it back we can do that. I figure if they don't come asking for it within a year, they won't come asking for it at all.
Out here they would need you to cash the check because it creates problems for their books. You can't just cancel a check after a HUD. That is the FINAL settlement statement. Is the check you received for the amount on the HUD?
Out here they would need you to cash the check because it creates problems for their books. You can't just cancel a check after a HUD. That is the FINAL settlement statement. Is the check you received for the amount on the HUD?
It's some random number that is not on the HUD. The original HUD I signed showed a certain refund amount, the final HUD shows no refund. The check is about $1000 more (not exactly) than what was on my signed HUD. How did they come up with the number on the check? No one knows, including our escrow agent ... almost like it was a random number added somewhere.
It's some random number that is not on the HUD. The original HUD I signed showed a certain refund amount, the final HUD shows no refund. The check is about $1000 more (not exactly) than what was on my signed HUD. How did they come up with the number on the check? No one knows, including our escrow agent ... almost like it was a random number added somewhere.
You need to file a complaint with the Department of Real Estate. This situation is totally unacceptable. I would have a quick chat with a real estate attorney to see what you should do with the check.
Escrow companies typically overestimate the amount of your settlement charges that are variable. Their attitude is that when all is said and done, it's much easier to send you a check than ask you to pay them after the fact. $1000 isn't an unusual amount. However, it should match your final HUD statement. That's what is so odd.
I feel I can never know the whole story here, but I want to ask how these mistakes were discovered. I mean the mistakes that resulted in you having to sign papers 3 times. Was it you, the escrow company or your agent?
About cashing the check, I don't know. Does your agent realize that if the check has been canceled and is no good you will be charged a big fee by your bank?
I asked a question before as a way to try to figure out if your agent had read and approved the HUD before they had you sign it. I didn't want to just assume this, but it seems to me this could be the case. I know there are agents out there that think all of that is the title companies job and a HUD can be hard to understand especially if you aren't an experienced agent. So, they don't bother. Mistakes on a HUD happen all the time, but they are very fixable. It doesn't mean the title company is bad. They are a neutral party that may not have the information given to them correctly.
If an agent doesn't consider this an important part of their job you may walk away from the closing table paying more than you should.
I asked a question before as a way to try to figure out if your agent had read and approved the HUD before they had you sign it. I didn't want to just assume this, but it seems to me this could be the case. I know there are agents out there that think all of that is the title companies job and a HUD can be hard to understand especially if you aren't an experienced agent. So, they don't bother. Mistakes on a HUD happen all the time, but they are very fixable. It doesn't mean the title company is bad. They are a neutral party that may not have the information given to them correctly.
If an agent doesn't consider this an important part of their job you may walk away from the closing table paying more than you should.
It is irrelevant because the check that was cut didn't match the original HUD nor does it match the new HUD. That escrow account is messed up and the company needs to be looked at closely by the CA DRE.
It is irrelevant because the check that was cut didn't match the original HUD nor does it match the new HUD. That escrow account is messed up and the company needs to be looked at closely by the CA DRE.
Are you sure? She did say she signed papers 3 times. How can there be a check cut that doesn't match any of the numbers anywhere? I still say there are missing parts of this story.
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