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Mortgage company screwed up my escrow transfer is now lying

they screwed up a bunch of stuff on my mortgage, but the best part now is they are saying that my Escrow is $912.75 short, my HUD CLEARLY states that $912.75 was an "Escrow Transfer Credit". Now they are trying to tell me that the $912.75 was supposed to be "going towards my closing costs". Which is NOT the case, the loan officer CLEARLY discussed wtih me that the $912.75 would be TRANSFERRED into my new escrow. Do I need a lawyer?? HELP PLEASE!!!!! by prncss_651_891 from Schaumburg, Illinois. Nov 15th 2012 Reply


Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions

Escrow money does not cover closing costs, it's a savings account that they collect monthly money from you to pay insurance and taxes at year end. If you refinanced with the same lender then they should transfer that money over to your newly established escrow account or, they should have collected enough at closing from you to fund it then refunded whatever was in it. They most definitely should not be collecting the exact same amount twice. Show them the HUD statement and the $912.75 ETC and that should fix it, if not then get help from the title co. that closed your loan.

Nov 15th 2012
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Barb Lanis (BarbLanis)
#72 ranked lender in Illinois - 663 contributions

How long ago did you close? Please contact me immediately. I am in your area. barb.lanis@1amllc.com or phone 630-660-8868

Nov 15th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Ok.. So there's a bit more info here.. If you are using your existing mortgage company to do your refinance, then they would allow for a transfer of your escrow account.. This is the ONLY scenario where an escrow transfer would take place.. If your using a lender other than your existing lender, then part of your closing costs would be funds to establish a new escrow account, and then once your loan finalized and the old loan paid off, you would receive an escrow refund from them within 30 days of closing.. this would be a check sent directly to you... but if this was all done through your existing lender, then i would contact the loan officers manager and discuss this with them... don't threaten attorney's since no one will believe you would hire an attorney to collect $900 back in fees.. The old saying "you get further with honey than with vinegar" hold true to this day... if the loan officer screwed up, the manger will be able to see through this.. Have your documents ready so you can email or give copies to him so you can support what you're saying.. I'm sure they make it right.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Nov 15th 2012
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Sam Perez (SamPerez)
#49 ranked lender in Illinois - 34 contributions

It seems there can be a few things going on. Typically an escrow credit from your current lender is reflected on the payoff letter NOT the HUD. However if you did the new loan with the same lender they might be able to show the credit internally or have additional leniencies on showing it on the HUD. I have never seen disclosed that way since showing it on the HUD would affect the incoming wire on the new loan and they typically keep each loan separate unless they're a small bank or actual investor of the loan not just a servicer. Another scenario is that maybe the $912.75 was an actual closing cost credit on the new loan which means you should have an additional escrow refund somewhere if not included on the payoff. I would check your closing docs and request a copy of the payoff letter the title company used at closing, if the payoff letter shows an escrow credit then your $912.75 might have been a closing cost credit and your LO did not know how to explain it. If the payoff letter shows an escrow balance (not included as a credit) then you might have some cash due to you... any event unless your taxes had a substantial increase -- the shortage should not happen if the escrows were calculated correctly on the loan.

Nov 15th 2012
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Matt Pollina (matt@smartmtgs.net)
#59 ranked lender in Illinois - 40 contributions

When did you close? Matt PollinaSmart Mortgage Centers, Inc.Naperville, Il

Nov 15th 2012
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Shaun Fischer (shaun.fischer@guaranteedrate.com)
#66 ranked lender in Illinois - 9 contributions

If it is a refi you will have 3 days to cancel the loan. Otherwise get help from the title company or a lawyer to make sure everything is compliant.

Nov 15th 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

When did you close. you have a 3 day right to cancel the loan.

Nov 15th 2012
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

your escrows can not be applied to your closing costs. i did have a situation with my lender, that they over charged my escrow account, and i wanted that to apply for a payment, but they sent me back a check, and then i had to send them another check for the new escrow account it all has to do when your insurance in due ,and when taxes are paid out ..

Nov 15th 2012
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