5,258,966
That shouldn't happen with the Federal guidelines where a Closing Disclosure has to be presented 3 days prior to Closing. I'd hire an attorney for the buyer but, I would think this would fall on the lender.
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Melissa Jackson REALTOR
Azle, TX
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Sandy Padula & Norm Pa...
, CA
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Dorie Dillard Austin TX
Austin, TX
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Kathleen Daniels, Prob...
San Jose, CA
-
Susan Haughton
Alexandria, VA
-
Lyn Sims
Schaumburg, IL
-
Dan Capra
Lowell, MA
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Doug Dawes
Topsfield, MA
-
Dave Halpern
Louisville, KY
-
Richard Bazinet /MBA, ...
Scottsdale, AZ
-
Michael Jacobs
Pasadena, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
Kasey & John Boles
Boise, ID
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Joseph Domino 480-390-...
Scottsdale, AZ
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Francine Viola
Olympia, WA
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Candice A. Donofrio
Fort Mohave, AZ
716,789
Let me see... that does not sound right. Underwriter and the broker knew about the change? That is simply not possible. Something is fishy with your question. The lender does not even do the recording...
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Debe Maxwell, CRS
Charlotte, NC
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Pete Xavier
Pacific Palisades, CA
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Candice A. Donofrio
Fort Mohave, AZ
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Kasey & John Boles
Boise, ID
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Lyn Sims
Schaumburg, IL
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Tony and Suzanne Marri...
Scottsdale, AZ
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Doug Dawes
Topsfield, MA
5,583,328
this is another reason every client we have has their own legal representation at closing.... if the recording had not taken place, why did the buyer have the keys and permission to occupy????????????
attorney is needed....
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Debe Maxwell, CRS
Charlotte, NC
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Lyn Sims
Schaumburg, IL
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Doug Dawes
Topsfield, MA
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Nina Hollander, Broker
Charlotte, NC
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Kasey & John Boles
Boise, ID
-
Joseph Domino 480-390-...
Scottsdale, AZ
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Candice A. Donofrio
Fort Mohave, AZ
-
Heather Zollinger
St. George, UT
544,014
What about the three day closing disclosure period? Was the CD issued? Are the changes within the allowed variance?
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Lyn Sims
Schaumburg, IL
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Brenda Mayette
Glenville, NY
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Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
-
Kasey & John Boles
Boise, ID
-
Debe Maxwell, CRS
Charlotte, NC
-
Heather Zollinger
St. George, UT
5,117,178
This doesn't sound "kosher" to me. Buyer has the legal right to see a closing disclosure three business days prior to closing to address these kinds of issues. Sounds like the buyer needs an attorney. Not sure how the broker knew of this change before the buyer.
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Debe Maxwell, CRS
Charlotte, NC
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Kasey & John Boles
Boise, ID
-
Teri Pacitto
Westlake Village, CA
-
Lyn Sims
Schaumburg, IL
-
Anthony Acosta - ALLAT...
Atlanta, GA
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Doug Dawes
Topsfield, MA
4,584,596
Based on the information you have provided there's more than a few missing pieces in this scenario.
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Greg Large
Grove City, OH
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Kasey & John Boles
Boise, ID
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Doug Dawes
Topsfield, MA
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Nina Hollander, Broker
Charlotte, NC
-
Margaret Rome Baltimor...
Pikesville, MD
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Debe Maxwell, CRS
Charlotte, NC
2,684,769
What was on the CD?
Who gave them the keys before closing?
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Kasey & John Boles
Boise, ID
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Brenda Mayette
Glenville, NY
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Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
809,258
What Jeff Dowler said. I don't understand how they got keys and moved in if it wasn't truly closed. Also, the closing disclosure issue, etc. How did they sign docs and not know about the change including the $2500 owed? That would be on the CD & settlement statement. I am a little confused at the details. -Kasey
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Teri Pacitto
Westlake Village, CA
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Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
5,063,430
I would think this is on the lender, and an attorny might be needed. As Debe Maxwell, CRS points out I wonder hiw this could happen when a closing disclosure is required 3 days before closing that lays out all the fees, etc. And there should be no keys exchanged until the transaction is recorded to be safe.
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Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
-
Kasey & John Boles
Boise, ID
3,071,589
Richard Bazinet /MBA, CRS, ABR nailed this one!
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Debe Maxwell, CRS
Charlotte, NC
-
Pete Xavier
Pacific Palisades, CA
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Richard Bazinet /MBA, ...
Scottsdale, AZ
3,168,284
this didn't happen. At least not recently.
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Debe Maxwell, CRS
Charlotte, NC
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Kasey & John Boles
Boise, ID
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Doug Dawes
Topsfield, MA
353,865
Sounds like the broker's problem. Shady I'd threaten to report them to your state licensing bureau, and threaten them with a small claims action if they don't honor whatever paperwork the buyer already signed. If they already have the keys I guess they get to move in and let the lender or seller evict them. What a mess...
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Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
6,426,149
I am sure there will be a judge who will know the answer to this one.
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Doug Dawes
Topsfield, MA
-
Bob Crane
Stevens Point, WI
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Debe Maxwell, CRS
Charlotte, NC
3,988,013
I don't know how that can happen with the 3 days disclosure rule and TRID. It sounds like a RESPA violation.
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Brenda Mayette
Glenville, NY
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Doug Dawes
Topsfield, MA
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Debe Maxwell, CRS
Charlotte, NC
1,057,664
What a great question. And what a terrible situation. The underwriter and the broker both knew that an additional $2,500 was going to be required of the buyer and the broker gave the buyer keys? Holy moly. We don't release keys until the property records. Whoever handed over those keys to that buyer should be in a world of hurtin' right about now.
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Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
5,773,367
You need an attorney. In my world, both the underwriter and the broker are responsible. A
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Brenda Mayette
Glenville, NY
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Debe Maxwell, CRS
Charlotte, NC
-
Heather Zollinger
St. George, UT
7,871,821
That is a matter between the borrower and the mortgage lender.
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Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Heather Zollinger
St. George, UT
1,078,451
It depends if the loan is a "qualified mortgage". If it's covered under recent regulations, it's just about impossible for this to happen with disclosure requirements.
Material changes like an increase to rate require re-disclosure to the buyer, they need to acknowledge a new loan estimate was received before the closing disclosure would be sent - both LE and CD would have the increased rate on there.
You'd have to have an incredibly sloppy lender, mortgage broker, and title company handling the transaction for something like this to occur. Or else the lender is simply out of compliance re: disclosures, and it'd be cheaper for them to eat the $2500 than it would be for a regulator to find out that they chased the buyer down for it.
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Debe Maxwell, CRS
Charlotte, NC
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Kasey & John Boles
Boise, ID
55,673
Lender cannot change the rate without sending notice to borrower. Something is missing here! If the borrower was "floating" the rate, then the change could have been made. No lender can change the rate after the mortgage closed...I never in my 48 years heard of this. Like I said,there is something not quite accurate.
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Debe Maxwell, CRS
Charlotte, NC
-
Kasey & John Boles
Boise, ID
2,222,281
Thank you Debe Maxwell, CRS
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Debe Maxwell, CRS
Charlotte, NC
-
Anthony Acosta - ALLAT...
Atlanta, GA
1,209,450
This does not sound right. Who was the loan agency? Who is responsible for the closing ?
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Debe Maxwell, CRS
Charlotte, NC
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Doug Dawes
Topsfield, MA
5,246,557
Lender has a problem and without previous disclosure cannot change fees charged as disclosed with initial application. Buyer needs an attorney and seller should already have his money per your facts!
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Debe Maxwell, CRS
Charlotte, NC
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Lyn Sims
Schaumburg, IL
1,525,616
I agree with Dave Halpern on this one.
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Doug Dawes
Topsfield, MA
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Debe Maxwell, CRS
Charlotte, NC
206,670
Question what does the Note your client signed say? Just curious if she signed a note then that is her rate I would think. For sure a legal question.
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Doug Dawes
Topsfield, MA
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Heather Zollinger
St. George, UT
4,434,177
Legal question.
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Doug Dawes
Topsfield, MA
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Heather Zollinger
St. George, UT
321,564
Sounds like someone didn't do their job. I don't see how the rate could change after the CD was delievered. If this happened I'm sure there is a case that a judge would be hearing.
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Debe Maxwell, CRS
Charlotte, NC
1,728,867
5,035,139
I'm wth Debe Maxwell, CRS on this one!!
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Debe Maxwell, CRS
Charlotte, NC
648,525
Do not see a circumstance where your scenario could actually take place here, Lender does not record the deed here. From your description, the transaction was completed with the wire transfer and signatures.
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Debe Maxwell, CRS
Charlotte, NC
420,003
Sounds like transaction did not close and buyer should not have moved in. "changed rate last minute" either the rate lock expired, or something buyer gave upfront changed such as loan to value, property not single family is PUD, FICO went down or some change of circumstance caused by Buyer. When rate changed lender had to resend a closing disclosure and buyer was forced to wait the holding period. Why did listing agent or buyer's agent let buyer believe the deal recorded? Legal isn't best bet here- is arbitration in contract? Every day the buyer is in house without closed loan costs everyone. Underwriters DO NOT talk to brokers facts are not straight
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Debe Maxwell, CRS
Charlotte, NC
1,712,876
In 27 years that has never happened to me.
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Debe Maxwell, CRS
Charlotte, NC
352,976
Why in the world would a buyer be given keys and allowed to move in to a property that they do not own? I had to look where you are located and not sure of your rules there, but in CA the buyer would not receive access to the home until there is Confirmation of Recording. From your post there was no recording and therefore appears that the buyer did not own what they moved into. Shame on whoever allowed that to happen.
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Debe Maxwell, CRS
Charlotte, NC
637,484
In California at least, money is not paid out from escrow to anyone until deed is recorded so no one is moving anywhere. There are other safeguards. The buyers agent isn't even part of the loan process. Yep, this sounds bogus to me.
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Debe Maxwell, CRS
Charlotte, NC
1,507,073
I'm with Debe Maxwell, CRS on this one. New laws should prevent last minute lender shenanigans like this. I'd say hire a lawyer.
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Debe Maxwell, CRS
Charlotte, NC
3,350,764
I am with Debe Maxwell, CRS - consult with an attorney ... my money is on the lender eats it.
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Debe Maxwell, CRS
Charlotte, NC
357,907
This sounds like something fishy going on, or a communication breakdown somewhere. Buyer needs to get a lawyer.
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Debe Maxwell, CRS
Charlotte, NC
2,190,182
This is an unlikely scenario. If this did, in fact, happen it is time for legal counsel... and you (as an agent) would have NO involvement in its resolution.
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Debe Maxwell, CRS
Charlotte, NC
902,538
Sounds fishy; there should've been appropriate disclosure before closing.
-
Debe Maxwell, CRS
Charlotte, NC
599,734
The settlement statement must be presented 72 hours prior to closing. I think the buyer has a solid case.
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Debe Maxwell, CRS
Charlotte, NC
4,800,132
It may very well be the closing agent who is responsible for this one.
-
Debe Maxwell, CRS
Charlotte, NC
1,027,602
Debe Maxwell, CRS has the right answer - this actually should not be happening with the 3 day closing disclosure requirement. If the lender wants more money, they need to pony up.
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Debe Maxwell, CRS
Charlotte, NC
4,907,547
Did your instructor make up the wacky scenario? Don't see this happening in the real world.
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Debe Maxwell, CRS
Charlotte, NC
1,847,891
There is no way this could happen with TRID & all the other guidelines. In 'the old days' the LO's company would eat any problems & possibly not be able to sell the loan.
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Debe Maxwell, CRS
Charlotte, NC
3,416,038
WIth the 3 day federal mandated review period, the buyer would see the HUD and know before closing day. The lender would have violated federal law. As a buyer i review the HUD with my buyer when we receive it so no surprises on closing day
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Debe Maxwell, CRS
Charlotte, NC
1,202,697
Certainly, a lawyer is called for in this situation. Odd though as the Federal Guidelines are very clear about the closing document being provided 3 days prior
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Debe Maxwell, CRS
Charlotte, NC
3,627,272
It's on the lender. Like the others indicated an attorney is in order
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Doug Dawes
Topsfield, MA
3,986,308
With the Federal guidlines as they are the HUD should have been updated and approved by the buyer
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Lyn Sims
Schaumburg, IL
2,071,025
I don't think it will be proper - % of interest would be discussed before and HUD to be given a few days prior the closing. Something is not right.
1,598,452
4,968,101
5,879,816
That situation won't happen with the new TRID rules, no changes day of closing.
1,625,353
I would be suggesting my principal against allowing the buyer to receive keys and move in before closing confirmed exactly for such reasons.
4,319,873
Heather Zollinger - should not have happened at all - buyers are supposed to review the docs 3 days prior to closing.
1,242,204
Heather Zollinger
It used to be realtors do loans(no license was required) and sale. They ofen get blamed.
It will not be that much but I will not want to get involved and get blamed.
921,504
First, if the story is true, the name of all parties involved on the financial side should be listed. The assurance of expose is what keeps people and companies behaving well. However, TOO BIG TO FAIL is to big govern.
Absence of identify suggests the story is not true or no longer true.
The buyers real estate agent will be able to bring a qualified attorney into the picture. IF it's Wells Fargo or Chase, a legal office with deeper pockets may be needed.
2,785,606
If its a substantiated expense as in bonafide, the one charged is responsible. Three things: Everything in Real Estate is negotiable & Calculate the costs to collect or dispute. Finally, spreading the blame (?) can ease it a bit for all
1,466,257
Heather Zollinger If all documents were signed and the property closed, the lender is probably responsible. The lender has nothing to do with recording the deed. Time to consult a real estate attorney.