Karenathome Posted September 19, 2009 Share Posted September 19, 2009 My friend just had this happen today... she and her family have already sold their house and were to close on the new-to-them house. How can a bank do this? When she freaked out and started to walk, bank said they'd look at the numbers again... came back with $15K for closing costs... It all sounds quite fishy to me! We have had 2 different closings and never experienced this. What would you do??!! How do banks get away with this? She and her husband left without a house, bank to get back to them on Monday... Karen Quote Link to comment Share on other sites More sharing options...
sparrow Posted September 19, 2009 Share Posted September 19, 2009 This happened to us 13 years ago when we bought our first house. I blew a gasket in the bank and the loan officer was looking at my husband with a "calm your wife down" kind of look. I demanded she show me the numbers and stood over her shoulder as she added everything up. While we stood there, the numbers came up exactly as we had been told before. Isn't that odd :glare:. Quote Link to comment Share on other sites More sharing options...
i.love.lucy Posted September 19, 2009 Share Posted September 19, 2009 In Texas we close with a title company who can help go over the HUD Settlement Statement. Where is the realtor? If they can't get an adequate response as to what the discrepancy is and why they didn't know about it until the closing table, I would call a real estate attorney. You can often get one to just look over the settlement docs for a small fee (under $500) that will save thousands. Realtors are not authorized to offer any kind of legal advice, but an experienced one should be working on their behalf to look over those docs and report anything that looks bogus in the taxes, or insurance, etc. Good luck to them! Quote Link to comment Share on other sites More sharing options...
Renee in NC Posted September 19, 2009 Share Posted September 19, 2009 The same thing happened here, except we were supposed to get money BACK at closing (we owned the land) and we ended up having to pay $1500.:glare: It delayed the closing for a few days! Quote Link to comment Share on other sites More sharing options...
KidsHappen Posted September 19, 2009 Share Posted September 19, 2009 That sounds fishy to me as well. You should have exact numbers before you walk in to closing. A last minute change of $6000 can't be explained by the fluctuations you see because of interest to the closing day, unless of course you are talking about a couple millions dollar loan. Does she have her own agent? If so the agent should be able to get her some answers. If not well then you need a real estate lawyer to look the paperwork over. Quote Link to comment Share on other sites More sharing options...
Karenathome Posted September 21, 2009 Author Share Posted September 21, 2009 Thanks for the suggestions! Wondering what tomorrow will bring... Quote Link to comment Share on other sites More sharing options...
dancer67 Posted September 21, 2009 Share Posted September 21, 2009 The bank has to give you a Settlement Statement. This way you know this is what you need to bring to the table. Now, keep in mind that the day of the closing things can change. Many banks will do a second credit report to make sure you haven't run up a big bunch of bills prior to closing, the will also do a second title search in case a long lost relative, or a credit card company does not place a lien on the property, and you do not even know about it. Sometimes water bills, tax bills, oil left in the tank has not been calculated in until the last minute. Many times your rate lock can expire. There are many, many things that can change even minutes prior to close. A settlement statement is an "estimate" of what you have to bring, or take home from the closing of the property. If there is any discrepency in that number, the bank obviously has to prove to you why, and how to clear the matter. As a realtor myself, we do not have any control over what the banks do. The only thing we can control is our commission, and there have benn a few times I had to give up part of mine to get a deal to close. Quote Link to comment Share on other sites More sharing options...
Harriet Vane Posted September 21, 2009 Share Posted September 21, 2009 Thanks for the suggestions! Wondering what tomorrow will bring... What happened?:lurk5: Quote Link to comment Share on other sites More sharing options...
littlebug42 Posted September 21, 2009 Share Posted September 21, 2009 When we bought our house, plans had been made to close near the end of May. Some "snafu" came up and they wanted to push our closing to the beginning of June which upped our costs due at closing. I went crazy and we moved our closing date but for the originally agreed upon closing costs. We were in a position to easily walk away from the deal and they knew it though. Quote Link to comment Share on other sites More sharing options...
StephanieZ Posted September 21, 2009 Share Posted September 21, 2009 I've learned to insist on three things prior to closing: 1) a "good faith estimate" (written of course) before I commit to a particular bank. I make sure they know I am comparing lenders and terms and ask for them to put their best (already given verbally or informally via email) offer into a GFE. This is pretty binding and prevents them from later on adding a bunch of fees "Oh, that's standard!" (NOT!) 2) a "commitment letter" once the bank tells me I am generally approved for said loan and before scheduling the closing. . . (This is a relatively binding commitment on the part of the lender, much more so than an "oh yes, you are approved statement. . ." This letter prevents them -- in general -- from changing their terms later and/or denying you the loan you thought you were getting at the last minute (and thereby holding you up for a worse loan/higher fees/etc). 3) the closing documents, including the "settlement statement" via fax or email 24 hours before closing time. I make it clear that my attorney and I will review these to ensure they agree with GFE & commitment letter. (This gives you time to go over them to catch their VERY common errors, compare them to the original terms estimates, etc. I find errors 90 % of the time -- usually on the order of 1-3k errors _NEVER ONCE IN MY FAVOR_ on a 200+/-k loan) When done ahead of time like this, I have been 100% successful getting the errors fixed. At the closing table, it is much harder. 4) At the closing table. . . I review the (typically just recently revised to correct the errors in #3) statements AGAIN. Take your time. Be ready to walk away until they "fix" the documents. I have had to come back the next day sometimes. I make these expectations clear well ahead of time. No reputable lender, title co, or atty will resist or refuse. If they do, it's a huge red flag and I would run to another lender. If I don't get my paperwork I walk. If I don't get it in time, closing will have to be rescheduled. It is what it is. I say it all with a smile and it works like a charm. Quote Link to comment Share on other sites More sharing options...
Dirtroad Posted September 21, 2009 Share Posted September 21, 2009 Walk away & find another bank. Quote Link to comment Share on other sites More sharing options...
unsinkable Posted September 21, 2009 Share Posted September 21, 2009 This happened to us 13 years ago when we bought our first house. I blew a gasket in the bank and the loan officer was looking at my husband with a "calm your wife down" kind of look. I demanded she show me the numbers and stood over her shoulder as she added everything up. While we stood there, the numbers came up exactly as we had been told before. Isn't that odd :glare:. I'm picturing that sweet little bird in your avatar like a bird from the Hitchcokc movie. :lol: Quote Link to comment Share on other sites More sharing options...
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