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
1 Answer from Attorneys
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.