Legal Question in Real Estate Law in California
I'm currently in a sixty day escrow. It is scheduled to close on October 12, 2009. I'm in the process of buying a condo in La Habra, Ca. I'm locked in a FHA fixed 30 year loan at a 5.375 interest rate.
After being unable to come into contact with Rosie my loan officer from Bank of America, I've been communicating with Mary the loan processor who's handling my loan.
Mary has communicated to me that the escrow company has not been responsive in a timely manner when being asked to send or provide information that is needed to close the loan. In this case the HOA certification form. The HOA certification form was sent from the escrow company to the HOA company last week. Today that same form was delivered from the HOA company to Mary the loan processor.
The CC&R was delivered to me in late August.
Mary explained that if escrow closes fifteen days late then I will have to pay one half of a percentage point which would come out to $260.25. If it closes thirty days late I will have to pay double $520.50. Mary said that if it was the mortgage companies' fault that the loan process is moving slowly then the additional percentage point fees would be waived, but added that if was the escrow companies' fault then I would have to pay the additional fees.
If I felt I was done wrong in this real estate transaction who can I complain to.
Thank you
1 Answer from Attorneys
Immediately contact as high an official in the escrow company as you can to complain and demand that they give you an expalanation as to why the delay has occurred, they put top priority on getting escrow closed by 10/12, and that if they were at fault for the delay they owe you the additional charges you will hve to pay. They may very well tell you that it was actually the bank that caused the delay; if theey say so, tell them since you are the innocent party and have no access to the information as to what actually occurred, if you have to pay addlitional charges you willsue in Small Claims court them and any others who mightt have any fault. You will also report this mattter to the Department of Real Estate whlich regulates escrow companies. But do not expect much co-operation from any of them. Threaten that you will call/e-mail several times a day to see what is occuring so that their title agent will have much less time to do anything but resolve your problem.
Read through your loan documents and any escrow papers to see whether what you have been told is true or not. Contact the HOA first to see what they can tell you about when the documents were requested, etc.
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