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Irwin Law
Irwin Law, Lawyer
Category: Real Estate Law
Satisfied Customers: 6854
Experience:  Lawyer- Broker 30+years - foreclosure, short sale, liens, title attorney.
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I just closed a reverse mortgage loan with Pacifico

Customer Question

I just closed a reverse mortgage loan with Pacifico Mortgage's Henerson Nevada's office. It took them 3 days, after the right of recession had expired, to fund the loan. The mortgage co put me in touch with the title com who funded the loan. The title officer said that the demand from the existing mortgage holder was $775.00 less than the actual payoff. The title co then added the $775.00 to the cash out amount and Pacifico Mortgage wants me to pay them that amount as an over-advance. The appraisal value didn't change, the maximum load advance did not change, only the mortgage payoff. I believe I am entitled to the extra $750,00 not the mortgage co. Am I right? Phil Palermo (*****@******.***)(###) ###-####
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Irwin Law replied 1 year ago.

Yes. You are right. As long as it doesn't overdraw your total authorized loan. It will go on your account as an advance on the total loan.

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Customer: replied 1 year ago.
The lender claims that "no matter what the payoff was on my existing loan, my cash out amount is restricted to a maximum amount of $13,900.00 per HECM (reverse mortgage limits" Any overages in the payoff goes back to the lender and the like amount goes into "Unavailable principal limit"
Expert:  Irwin Law replied 1 year ago.
Phil. If the $775 overdrew your maximum allowable amount for the cash, then it goes back to the lender. That provision would be written into the terms of the loan would be in the Mortgage itself. Whether you can draw it back out later as an advance, I can't say without reviewing your documents.
Expert:  Irwin Law replied 1 year ago.
HELLO AGAIN. I hope that my Answer has been helpful. If you need more information, please send me a Reply. If not, I hope that you will enter a positive rating for my Answer so that I can receive credit for assisting you. Thanks again for using JUST ANSWER.

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