Closing Problems

[ghud]

I have a similar problem to classy. My agent gave me a closing cost at the middle of may. I agreed to pay 1500 towards closing cost. A week later he came back and said closing cost were 2300 because of fees. I agreed to the 2300. On May 27 he called and said the attorney got a closing cost from the mortgage companies and that the total had increased to 3500 because the actual payoff had been received and the payoffs were higher that anticipated. After a heated debate, I agreed to pay the 3500. The agent assured me that the payoff was good until the close, which was scheduled for June 24. Today the agent calls and said that the payoff was only good for seven days from the date that the payoff was received and that the closing cost were now a little over 5000. I don't have 5000 to close and can't come up with the additional cash for at least another month or so. What can I do?

[kyle422]

Are you buying or selling?

[ghud]

selling

[kyle422]

My agent gave me a closing cost at the middle of may. I agreed to pay 1500 towards closing cost.

I'm confused, did you agree to pay $1500 of the buyers closing costs? Also, the agent most likely gave you "an estimate of closing costs". Were you not in contact with your lender? Why would the agent be the one looking into how much your payoff would be. That is information that is given to the agent by you the seller.

closing cost were now a little over 5000. I don't have 5000 to close and can't come up with the additional cash for at least another month or so. What can I do?

That money will be deducted from the proceeds of the sale. Do you owe more on the loan than the sale price of the house?

P.S. I'm going to bed now. Goodnight.

[ghud]

I'm confused, did you agree to pay $1500 of the buyers closing costs? Also, the agent most likely gave you "an estimate of closing costs". Were you not in contact with your lender? Why would the agent be the one looking into how much your payoff would be. That is information that is given to the agent by you the seller.


That money will be deducted from the proceeds of the sale. Do you owe more on the loan than the sale price of the house?

P.S. I'm going to bed now. Goodnight.

I owe more on the sell when you include closing.

[kyle422]

Ouch. That's too bad. I've never experienced a situation like that.

[kensmith]

You are talking about your mortgage payoff amount not closing costs... very different items. Closing costs are title fees, transfer stamps .... things that occur do to the sale of the home. Not included in this is if your mortgage payoff is more than the sale price.

If you are under contract to sell you are VERY limited on your options as you will end up with a lawsuite against you if you back out now (most likely). You might be able to arrage a short sale with the bank and get them to waive some of the interest to get things done. If you have an attorney for the closing I would talk with him and check your options out.

The mortgage payoff is your issue, not your agents. Don't get to mad at the agent as they are going by what they are told and just relaying the information...it's not their job to talk to the bank. Actually it would be a violation of the privicy act if the bank talked to them so there is very little the agent can do.