Legal Question in Real Estate Law in California

claim submitted to escrow

We received pre-approval on a loan from a mortgage company, but decided to go with another lender. This company is ot submitting a demand to escrow for processing costs, but they did not process the loan. Can we regect this claim or do we have any other legal recourse?

Raul


Asked on 5/23/01, 4:16 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: claim submitted to escrow

Without seeing everything you've signed in connection with the loans and the escrow, I can't answer your question with total certainty. In general however a home-puchase escrow in not a bill collection free-for-all. The escrow holder cannot pay out any money to anyone except according to signed instrctions from the parties (short of possibly a court order).

I think you should have a discussion with an officer at the escrow company to get an answer. Also I should note that local practices differ, and if you are in southern California things are done a little differently than here in Sonoma County, but this attempt to collect through escrow looks improper anywhere to me based on the information in your question.

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Answered on 6/25/01, 6:22 pm


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