Legal Question in Consumer Law in Massachusetts

Mortgage Refinance & Attorney Charge

I applied for a mortgage refinance for $260K. I was approved and signed the Good Faith Estimate, which provided my Estimated Settlement Charges at $3617.01, my Pre-paid Interest at $1,202.01 and my other Estimated Settlement Charges at $2415.00. At the time I requested my refinance the bank provided a payoff of my existing mortgage at $241,860.63 and a HELOC of $9,743.32, which totals $251,603.95. Since my total refinance was $260,000.00 and my total payoff was $251,603.95, I would have had $8,396.05 to pay my Settlement Costs and have some cash left over. On the day of the closing I received a call from the closing attorneys office stating that I need to bring a check to the closing for $5,029.00, which I did not have and was never informed by the bank or attorneys office previously that I needed to bring any money, since I had thought I was going to receive money back. Mind you during the entire process I was informed by the VP of the bank that I would be receiving a credit back at close. I did not end up closing on this refinance, due to the expense. I then receive a--name removed--from the attorney�s office today for a total of $916.50. I feel the bank was negligent and should pay this amount. Can I fight this?


Asked on 3/02/07, 9:34 pm

1 Answer from Attorneys
henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

Mortgage Refinance & Attorney Charges

Apparently there was a major lapse in the communication. You should have not only had a description of the costs, but when the attorney called you the day before the refinancing, he should have offered a breakdown of the costs that led to the increase.

This observation is not meant to say if the amount sought was correct or incorrect.

As to the request for money, you need to know if there is a contractual basis to this demand.

Read more
Answered on 3/03/07, 8:51 am


Related Questions & Answers

More Consumer Law questions and answers in Massachusetts