Am I responsible for a clerical error on escrow company’s part after my refinance has funded?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Am I responsible for a clerical error on escrow company’s part after my refinance has funded?
I just refinanced my home. The loan has closed and was funded. The escrow company is now asking for another $500 due to a clerical error on their part; they say the payoff amount for my original mortgage is short by this amount. I see no discrepancy between the HUD1 I signed and the payoff demand from the original mortgagor. Now, they are trying to send me a new HUD1 to sign. Am I responsible to pay these additional funds?
Asked on November 24, 2011 under Real Estate Law, Maryland
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If escrow has closed on the refinance of your loan and there was a disclosed mistake by the escrow company that came to your attention after close of escrow with respect to the $500 amount that you have mentioned in your question, you have no obligation to sign another HUD 1 statement nor to make any additional payment of money out of your own pocket
The purpose of escrow is to make sure that the numbers balance on your refinance and all parties to the escrow get what they are entitled to. When escrow makes a mistake, escow has to pay for it out of its own monies.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.