Posted on: 17th Mar, 2009 04:02 pm
Hi,
Basically the bank tried to 'skim' my escrow at closing (by treating some of the impounds as closing costs... probably illegal, but that's another story).
I exercised my right to cancel within 3 days. I also got FedEx to turn around the cashier's check before it got to the title company. So no-one has any of my money other than the up-front application and credit check fees.
Is anyone likely to come after me claiming that I "owe" something? Or does the federal law regarding the right of rescission prevent that?
I already know to 'see a lawyer', but my question here is of a more general nature - whether such cancellations are typically just written off as the cost of business, or whether everyone tries to chase down their costs.
Thanks!
Basically the bank tried to 'skim' my escrow at closing (by treating some of the impounds as closing costs... probably illegal, but that's another story).
I exercised my right to cancel within 3 days. I also got FedEx to turn around the cashier's check before it got to the title company. So no-one has any of my money other than the up-front application and credit check fees.
Is anyone likely to come after me claiming that I "owe" something? Or does the federal law regarding the right of rescission prevent that?
I already know to 'see a lawyer', but my question here is of a more general nature - whether such cancellations are typically just written off as the cost of business, or whether everyone tries to chase down their costs.
Thanks!
the right of rescission cancels everything that has taken place, and also allows you to be refunded whatever sums you've already paid out.
nobody is coming after you for anything; that's not legal. and you really don't need a lawyer as long as the lender complies with the law.
nobody is coming after you for anything; that's not legal. and you really don't need a lawyer as long as the lender complies with the law.
Hi tetech,
I agree with George. Once you cancel the loan within the 3 day rescission period, the lenders will not be able to come after you or sue you for any amount. If your lender does so, it will be considered as illegal.
Thanks
I agree with George. Once you cancel the loan within the 3 day rescission period, the lenders will not be able to come after you or sue you for any amount. If your lender does so, it will be considered as illegal.
Thanks
Hi George & James,
I appreciate your replies very much; thank you!
To expand the scope of my question a little, would the law also cover parties the lender contracted with?
For example, at closing, I was to pay $200 as my "share" of the legal fees. Could the lender's law firm try to get the $200, even though the lender cannot?
Thanks again!
I appreciate your replies very much; thank you!
To expand the scope of my question a little, would the law also cover parties the lender contracted with?
For example, at closing, I was to pay $200 as my "share" of the legal fees. Could the lender's law firm try to get the $200, even though the lender cannot?
Thanks again!
when the contract is called off then i won't find any thing as lawyer's fee to be so much crucial (that too opposite party's lawyers fee).
so i recommande you to not worry about the lawyers fees as it is supposed to be paid by lender not by you. :wink:
so i recommande you to not worry about the lawyers fees as it is supposed to be paid by lender not by you. :wink:
according to the law itself: "If the consumer rescinds the transaction, the
creditor must refund all amounts paid by the consumer (even
amounts disbursed to third parties) and terminate its security
interest in the consumer's home."
i assure one and all that i wouldn't be quoting this if it were not in the truth in lending act itself.
so...you should get back all monies paid out already - the lender may not hold any funds back.
manoj...where did you get the idea that the lender pays the attorney? that's never been the case - it is a third-party fee and paid by borrowers, unless a lender decides to provide "free" service as an incentive to the borrower.
creditor must refund all amounts paid by the consumer (even
amounts disbursed to third parties) and terminate its security
interest in the consumer's home."
i assure one and all that i wouldn't be quoting this if it were not in the truth in lending act itself.
so...you should get back all monies paid out already - the lender may not hold any funds back.
manoj...where did you get the idea that the lender pays the attorney? that's never been the case - it is a third-party fee and paid by borrowers, unless a lender decides to provide "free" service as an incentive to the borrower.
Thanks, George.
it's a pleasure to help.
and to elaborate, because i just thought of it...
wouldn't it be nice if more people came to recognize what a blessing it is to be a blessing to others? even if there is no monetary compensation, the wealth we experience in simply giving of ourselves is beyond measure. it's almost impossible to describe the elation i get when i know that someone has benefited from something i've done or said or even left alone.
wouldn't it be nice if more people came to recognize what a blessing it is to be a blessing to others? even if there is no monetary compensation, the wealth we experience in simply giving of ourselves is beyond measure. it's almost impossible to describe the elation i get when i know that someone has benefited from something i've done or said or even left alone.
Tetech,
Also, in the future, VERY few lenders/brokers will ask for an upfront "application and credit fee" this is the cost of doing business. If your loan closes with me, then great, those fees are covered, but I will cover that cost on my own until then. If you loan doesn't close, well yes, that sucks, b/c I just paid those fees, but I am not going to come after you to get them.
Also, why are you dealing with a lawyer in a refi?
Also, you stated that they may have "hidden" their fees in the impounds. Please know that as a broker, we have NO idea how the lender will calculate your impounds. Generically I ALWAYS put 3 months, but when we get final loan docs in, the lender may want 9 months. This isn't a fee EVER that the broker is paid. This is strictly put away in an escrow account.
Hope this helps!
Also, in the future, VERY few lenders/brokers will ask for an upfront "application and credit fee" this is the cost of doing business. If your loan closes with me, then great, those fees are covered, but I will cover that cost on my own until then. If you loan doesn't close, well yes, that sucks, b/c I just paid those fees, but I am not going to come after you to get them.
Also, why are you dealing with a lawyer in a refi?
Also, you stated that they may have "hidden" their fees in the impounds. Please know that as a broker, we have NO idea how the lender will calculate your impounds. Generically I ALWAYS put 3 months, but when we get final loan docs in, the lender may want 9 months. This isn't a fee EVER that the broker is paid. This is strictly put away in an escrow account.
Hope this helps!