Legal Question in Real Estate Law in California

Re: FHA Streamline- Escrow seems questionable

I can't really answer your question without more information, but it may be helpful to you just to think about my questions and their answers:

(1) What do you mean by 'money I've already given them?" Do you mean prior loan payments, or do you mean money you deposited into escrow? Prior loan payments would not be reflected in refinance escrow documentation; only the new balance due resulting from your payments would show. If, on the other hand, you made money deposits into an escrow, they certainly should show.

(2) Who exactly is asking for more money? Is it the new lender, the escrow company, a loan broker, the former lender, or who? Such requests made after close of escrow and made by telephone rather than in writing are somewhat suspicious, although there may be a perfectly legitimate explanation.

(3) What kind of entity acted as the escrow holder here? Mainstream escrow and title companies are usually well-equipped and well-staffed to provide their customers with explanations of the process and the charges. They are also pretty trustworthy and legitimate, because they have licenses and reputations to protect. However, sometimes escrows are handled by, for example, individual attorneys or brokers, and the quality of those services is variable.

(4) Perhaps you are confusing the parties. Be sure to distinguish the escrow company and services from the lender, and billing related to the escrow from billing related to the new loan obligation.

(5) Finally, if you can't get a satisfactory answer, see a real-estate lawyer. There is too much at stake to take a chance......not only money and your home, but also your peace of mind.

Re: FHA Streamline- Escrow seems questionable

In thinking about my earlier reply, I thought I should add a clarification.

I practice law in Northern California. Escrow practices are somewhat different in Southern California. As I recall, in Southern California loan companies often handle escrow duties as well. This practice is very uncommon up here.

The upshot is that if your property is in the Southland your escrow may very possibly have been handled by your lender or your loan broker.