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Old 10-28-2010, 09:50 PM
 
4 posts, read 13,270 times
Reputation: 12

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Hello,
I've been working with a local mortgage broker on mortgage refinance... their initial promise was "4.25%/30 years with NO CLOSING COSTS". I have this in writing. All in all, they were pushy and did everything to close ASAP.

Long story short, we are at the closing table and I need 5k to close. Taxes - fine. Biggest chunk though is an escrow account funds, insurance, and everything escrow related. I don't have it on my current mortgage nor did I want it to be set up for my new one (they didn't ask me, and I overlooked it on GFE.. I know -- pretty dumb of me).

I refused to sign closing papers ... any consequences for me? Am I liable to pay for the appraisal or any other fees of a "no cost" refinance? Please HELP!!!!

Last edited by notfound123; 10-28-2010 at 09:59 PM..
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Old 10-29-2010, 07:58 AM
 
Location: Plano, Texas
1,675 posts, read 6,651,953 times
Reputation: 694
You are not liable for paying any costs with the exception of the appraisal. Did they not charge you upfront for the cost of the appraisal?

That was smart not to sign and it is an easy fix. Tell your broker to redo the loan documents with no escrow account. Seems like an honest mistake could have been made since you didnt catch that either.
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Old 10-29-2010, 08:15 AM
 
4 posts, read 13,270 times
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They didn't charge me up front for it, but I don't think it was a honest mistake either. They didn't even email copies of closing docs for me to look at.. I didn't bother going through GFE since I knew the whole thing was "no cost"..
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Old 10-29-2010, 09:07 AM
 
4 posts, read 13,270 times
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I think my best option might be to change everything to no escrow and close with them anyway.
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Old 10-29-2010, 09:21 AM
 
Location: NJ
17,579 posts, read 42,170,508 times
Reputation: 16197
Quote:
Originally Posted by notfound123 View Post
I didn't bother going through GFE since I knew the whole thing was "no cost"..
You probably won't make that colossal mistake again.
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Old 10-29-2010, 09:24 AM
 
Location: Wake Forest, NC
835 posts, read 3,764,184 times
Reputation: 649
I think it was just an honest mistake on both sides. LO didn't ask and you didn't make your wishes clear. There is either .25% fee upfront or an adjustment to rate to waive escrows with almost every lender so it is much more rare these days than in the past.
Just give the broker a call and ask them to rework with the waiver and you can be back to closing in about 1 week.
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Old 10-29-2010, 09:27 AM
 
Location: Plano, Texas
1,675 posts, read 6,651,953 times
Reputation: 694
Quote:
Originally Posted by notfound123 View Post
I think my best option might be to change everything to no escrow and close with them anyway.

I would agree.
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Old 10-29-2010, 12:08 PM
 
4 posts, read 13,270 times
Reputation: 12
Quote:
Originally Posted by manderly6 View Post
You probably won't make that colossal mistake again.
Absolutely! but I was waiting and waiting to get updated HUD to review it... and never did.


Talked to LO... will try to close again next week.. this time they promised they will email HUD1 in advance

Thanks everyone!!!!
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Old 10-29-2010, 12:26 PM
 
Location: NJ
17,579 posts, read 42,170,508 times
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Good luck.
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