Legal Question in Real Estate Law in Nevada
Payoff of current mortgage through title company
I sold my home in June of last year and escrow was through First American Title. I have since received a letter from Chase that my loan was not paid in full and I still owe $1800.00 and they are going to send me to collections. I informed Chase to call the title company as it is their responsibility to insure that the payoff is correct, etc. First American title said they will not take responsibility for the short payoff. Is it not ultimately escrow's responsiblity to insure the payoff is good through the funding date? What can I do?
1 Answer from Attorneys
Re: Payoff of current mortgage through title company
Even if the title agent or escrow agent made an error at closing, you still owe the lender whatever the loan amount was as of the date most of it was paid off at closing, plus applicable interest accruing on the unpaid amount. The title agent's error does not somehow forgive the loan/credit extended to you by the bank. However, if the bank gave the title agent the wrong payoff amount in writing, then you might be able to at least get rid of any interest on the unpaid balance and just settle with the lender by paying the principal amount that remained unpaid. This will require negotiation with your lender's representative and proof that the pay amount provided by the lender was wrong when provided. Of course, the foregoing are just general ideas. Without knowing all of the facts, without reviewing all pertinent documents and without first establishing an attorney-client relationship by way of a written engagement agreement, I cannot give you any advice that you may rely upon. Good luck.