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Posted: 10/11/2007 10:06:19 AM EST
[Last Edit: 10/11/2007 10:14:12 AM EST by VoodooChile]
When I originally bought my first house a few years back I used an 80/20 loan with the "20" being an ARM..after a few years of rising payments (206 just for interest) I decided to refinance the "20" with a fixed rate. I bought a lower rate and I was told the payment on my "20" should drop to 182 for interest and principal..They were going to send a notary out tonight to handle the paperwork but 3 hours before closing the Countrywide guy calls and says the estimate on the payoff on the old loan was low by $700...It'll only add $6 to my payment but does that sort of thing happen normally? The "20" was only $22,000 to begin with.
Link Posted: 10/11/2007 10:09:00 AM EST
Sounds right. The payoffs they use during the process are close. It's not until they contact the current lender for today's payoff that they get the exact amount. I would say it's right on.
Link Posted: 10/11/2007 10:10:20 AM EST
[Last Edit: 10/11/2007 10:11:22 AM EST by VarmintKilla]
Yup, normal part of the process. My last closing was delayed by two days due to underwriter and other involved parties, BS.

ETA: We were actually at our closing two days in a row for several hours each day trying to get it done and it was all stuff out of our control.....extremely frustrating.
Link Posted: 10/11/2007 10:11:13 AM EST
your payoff is what it is....
Link Posted: 10/11/2007 10:13:32 AM EST

Originally Posted By NoVaGator:
your payoff is what it is....


Yeah, I was wondering if they underestimated it to make it more attractive..I'm just amazed they could miss by $700 on a $22,000 loan in this day and age
Link Posted: 10/11/2007 10:17:04 AM EST

Originally Posted By VoodooChile:

Originally Posted By NoVaGator:
your payoff is what it is....


Yeah, I was wondering if they underestimated it to make it more attractive..I'm just amazed they could miss by $700 on a $22,000 loan in this day and age



you should have received a HUD1 with all of the details before today
Link Posted: 10/11/2007 10:22:46 AM EST
Your ok.

They can only estimate them based off your credit report initially. I usually add a payment on that for an estimate.
Link Posted: 10/11/2007 10:24:32 AM EST
I received a packet last week that had the:

Lock In agreement

Loan Application

Truth In Lending

Good Faith estimate

Everything else got faxed to the Notary because they were running behind
Link Posted: 10/11/2007 10:26:52 AM EST

Originally Posted By Storm_Tracker:
Your ok.

They can only estimate them based off your credit report initially. I usually add a payment on that for an estimate.


I'm still way better off but when somebody calls at the last minute and says "Oh by the way..we'll need you to pay an extra $700" my WTF detector starts pinging
Link Posted: 10/11/2007 10:33:02 AM EST
The good faith estimate would include your payoff.

You should see that number on your statement each month, right?

Link Posted: 10/11/2007 10:33:54 AM EST
Tell them that you'll pay only of they get a different spokesman that doesn't sound like he's got a loogie in his mouth.
Link Posted: 10/11/2007 10:34:38 AM EST
Link Posted: 10/11/2007 10:35:05 AM EST

Originally Posted By VoodooChile:

Originally Posted By Storm_Tracker:
Your ok.

They can only estimate them based off your credit report initially. I usually add a payment on that for an estimate.


I'm still way better off but when somebody calls at the last minute and says "Oh by the way..we'll need you to pay an extra $700" my WTF detector starts pinging


Your current lender probably took their sweet ass time getting them the payoff. 3 hours before closing tells me it probably was discovered after the fact of your docs were all put together for closing. There are alot fo figures and accounting that go into figuring out all closing costs etc.. If your only off by 700$ that isnt bad really.
Link Posted: 10/11/2007 10:37:44 AM EST
Whatever is on the HUD1 statement is what goes.
Link Posted: 10/11/2007 10:40:54 AM EST
[Last Edit: 10/11/2007 10:41:38 AM EST by t-money]
They forgot to get an updated payoff. They probably didn't realize the payoff's "good through" date had already passed until they had already sent out the loan package.
Link Posted: 10/11/2007 10:43:04 AM EST
last time I sold a home, at closing the attorney thought I didn't owe anything on the mortage for that house, I owed $25K or so, had to inform him of that fact. Gave him the exact payoff amount to boot
Link Posted: 10/11/2007 10:44:55 AM EST
[Last Edit: 10/11/2007 10:46:05 AM EST by CWO]

Originally Posted By VoodooChile:
When I originally bought my first house a few years back I used an 80/20 loan with the "20" being an ARM..after a few years of rising payments (206 just for interest) I decided to refinance the "20" with a fixed rate. I bought a lower rate and I was told the payment on my "20" should drop to 182 for interest and principal..They were going to send a notary out tonight to handle the paperwork but 3 hours before closing the Countrywide guy calls and says the estimate on the payoff on the old loan was low by $700...It'll only add $6 to my payment but does that sort of thing happen normally? The "20" was only $22,000 to begin with.


Unfortunately a pretty normal "bait and switch" for firms with ethics issues or slopping accounting. Normal timing too - right when you are approaching the closing table. Pick a better lender. PM me if you want a recommendation.
Link Posted: 10/11/2007 10:45:05 AM EST

Originally Posted By NoVaGator:
The good faith estimate would include your payoff.




The figures on the good faith was what I understood the deal to be...now they added $700 to all that
Link Posted: 10/11/2007 10:45:23 AM EST
Like my Dad use to tell me...

"I've never seen a mistake at closing that didn't cost me money."

Same rule applies when buying a new car.
Link Posted: 10/11/2007 10:51:59 AM EST

Originally Posted By VoodooChile:

Originally Posted By NoVaGator:
The good faith estimate would include your payoff.




The figures on the good faith was what I understood the deal to be...now they added $700 to all that

Its an estimate.....

Pretty normal though for the payoffs to be different.

I might use the payoff on your credit report or from your last statement, however The lien holder may have fees such as a $500 fee for closing within 3 years which is normal on most HELOC 2nds... They also want to be paid for everyday they have a lien so your payoff today is different than yesterday or tomorrow.
Link Posted: 10/11/2007 1:17:29 PM EST
Go to the fannie mae web site, the final HUD 1 should only vary from the good faith by 10% (I think). Ask for documentation as to where this was found and remember it was only an estimate.
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