Posted on: 13th Jul, 2011 03:09 am
I am refinancing my mortgage. At the time of signing off papers I decided to verify the numbers matched for what the lender listed as payoff to the current lender. The new lender lists 5 days of extra something (per day interest I think).
So, the current lender told me the payoff is X but in the papers that I am supposed to sign with new lender, it is listed as X+ 53.60. I think this is hidden fee or whatever you call it.
So I have asked the new lender to explain the difference and get new papers in order for me sign.
Is this sort of misrepresenting payoff, a routine practice?
Is it a case of trying to beat the law of correct reporting?
Is there anything else I can do other than force the new lender to correctly report the numbers?
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So, the current lender told me the payoff is X but in the papers that I am supposed to sign with new lender, it is listed as X+ 53.60. I think this is hidden fee or whatever you call it.
So I have asked the new lender to explain the difference and get new papers in order for me sign.
Is this sort of misrepresenting payoff, a routine practice?
Is it a case of trying to beat the law of correct reporting?
Is there anything else I can do other than force the new lender to correctly report the numbers?
-
If this was $536 you were discussing, I'd say you had a legitimate beef. However, since the new lender is apparently trying to take into account a potential delay in the old one's receipt of the funds, I'd say it's not that big a deal. Any overpayment to the original lender is going to come back to you in the way of a refund. Will you lose "opportunity interest"? Maybe, but what's interest of $53.60 calculated for even a month? At a rate of 1% annual, which is pretty rich these days, you'd earn 5 cents in the course of a year on that amount. Divide that by 12 and you'll not even have a penny in your pocket.
Unfortunately, the lender you're working with now doesn't have enough sense to explain this whole process properly to you. This is, of course, epidemic in the mortgage world these days. It's got more to do with lenders not having any notion of what they're doing more than it's because they're trying to hide anything.
For the most part, they're not even smart enough to hide things these days.
Unfortunately, the lender you're working with now doesn't have enough sense to explain this whole process properly to you. This is, of course, epidemic in the mortgage world these days. It's got more to do with lenders not having any notion of what they're doing more than it's because they're trying to hide anything.
For the most part, they're not even smart enough to hide things these days.
For sure, there is something wrong with your lender. In your case, at least you are aware that something is going on. Just keep your eyes open and don't let them take advantage of the situation especially if you don't have any experts to get advise with your problems and confusions.
Yup...that's right.