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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 08:59 PM..
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.
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"..
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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