Talk Irvine

General => Economy & Finance => Topic started by: DBtoOC on June 29, 2020, 07:43:36 AM

Title: Question for Mortgage Experts out there
Post by: DBtoOC on June 29, 2020, 07:43:36 AM
I recently closed my refi w/, but I have a question about getting reimbursed for cash for closing.  (FYI - the crappy escrow company has been non-responsive thus far). 

My loan closed on 6/18.  I prepaid the interest on my new loan from 6/18 to 7/1, BUT I also had to pay the full month's interest to the old lender as part of the estimated payoff of that loan.  Typically, who reimburses me for the double-interest from 6/18 to 7/1? 

I called my old lender and they claim that the escrow company only paid off the loan for the applicable interest thru 6/18.  Thus, according to this statement, shouldn't the escrow company reimburse me back the difference?  Their reimbursement check was WELL short of that. 
Title: Re: Question for Mortgage Experts out there
Post by: daedalus on June 29, 2020, 08:57:51 AM
This is too funny.  I just started a different thread asking for help from the mortgage experts for my issue with a refi from  Looks like I'll maybe have another issue when I get my check from escrow.  I'll post a full-detail review of them when this all settles.

Sorry I can't help, hope you get it sorted out.  Maybe post it over in the mortgage/re forum.
Title: Re: Question for Mortgage Experts out there
Post by: Soylent Green Is People on June 29, 2020, 09:58:08 AM
Given the volume Owning is working through as well as their preferred 3rd party settlement groups, you'll need to do all of the legwork yourself. Don't expect them to do anything as they are trying to take sips from a fire hose right now. After having my own personal refinances completed I would often see small checks float in several months after COE. Your situation is not unusual, but it does require some direct follow up if you fear losing a relatively small amount of cash. It's not that one doesn't care, it's that some are patient and prefer waiting. Things do eventually work themselves out.

Here goes:

Step 1. Always get it in writing and not a phone discussion. Ask for an e-mail stated when the payoff was processed (key word), how much the Bank received, and what it was for.

Step 2. Compare with the closing statement Escrow provided.

Step 3. If there is a difference, ask to speak to someone with authority about the discrepancy. You'll have the figures from your lender and what the funds were for. You have Escrow's data which can be adjusted and fees refunded to you if deserved.

Payoff demands will say (in summary) "The balance is $100,000 as of 7/4/2020 inclusive of interest due from 6/1/2020 to 7/4/2020, and $36.88 per day will be charged thereafter" Most escrows will sent $100,036.88 even if you fund on 7/2/2020 and record on 7/3/2020. If the payoff is wired on 7/3/2020 the day of recording but processed - again key word - on 7/5/2020, you do not have any money due back to you.

Escrow may show the closing date of 7/3 (7/2 funding, 7/3 recording) but the lender processed the payoff on 7/5.

It's difficult to track exact pre-paid interest numbers, but with the letter/e-mail from your previous loan servicer in hand it may clear up most of the issues at present.

My .02c
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