Legal Question in Real Estate Law in Pennsylvania
Loan closing surprise
At closing, the settlement sheet included a collection CC debt to be paid off per lender's requirements. On 2 prior good faith estimates from the mortgage company, neither stipulated this to be paid. It was listed as a debt and used in debt/income ratio, but was not checked off as to be paid as some other items were ie. mortgage, lien etc.
It was never mentioned as even being a possibility.
Then, at closing-some 6 weeks after initial application, I caught it as listed to be paid from proceeds. Again, this rather significant item was never mentioned to be paid prior. As a result, it prevented me from closing due to the amount of $9200.
Any recourse? We are now forced to sell the home as a baby is due in Feb and we were already down to the wire to do a remodel. So we are left with trying to find a larger home in time.
2 Answers from Attorneys
Re: Loan closing surprise
i am going to assume that you knew of the debt. it sounds to me that this is actually a judgment against you, but i cant tell from the info provided. a judgment acts as a lien against your real property, so you cannot sell your home without taking care of this. this payoff likely was a requirement of the title insurance company used by the buyer. any title insurance company would require this. assuming that you knew of the debt/judgment, i dont see the surprise and i dont see any recourse. pay this off or settle it before you attempt to obtain another loan.
Re: Loan closing surprise
was this a refi closing?
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