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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 23398
Experience:  9+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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Home Loan Closuring Disclosure is showing that we owe $2300

Customer Question

Home Loan Closuring Disclosure is showing that we owe $2300 more in Closing Costs than Estimate showed. What can I do?
Back in November of 2015 we got a good-faith estimate of $16,600 in Closing Costs with $10,709 in seller credits from Lennar, the builder. Our total estimated closing costs out of pocket were $6428.
Today, one week before closing here in July 2016, we got our Closing Disclosure, and there are some significant changes. It's showing a total Closing Costs of $24,795 with $16,000 in seller credits, the max credit from builder. But our closing costs out of pocket is now $8795.
That's a difference of $2300 in additional closing costs for us! One week before closing!
We compared the two and here are the major line item differences:
Under "G. Initial Escrow Payment at Closing":
- Property tax in Escrow for 11 months at $540 = $5947 (was 3 months = $1622 on estimate)
Under "Other Costs - E. Taxes and Other Government Fees"
- City/County Tax Stamps = $821 (not on estimate)
- Document Stamps on Deed = $3028 (not on estimate)
- State or Mtg Registration Tax = $1438 (not on estimate)
What are my options??? The LENDER screwed up on the estimate and now WE have to pay? Sounds like a scam. What should I say to our loan officer?
Even though Lennar (the builder) is showing as the one who is paying the transfer taxes under "Other Costs - E." with their $16,000 credit, shouldn't those fees not count against my total closing costs because they are a Zero Tolerance fee with the TILA-RESPA and WERE NOT on my estimate?
Submitted: 3 months ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 3 months ago.

Good morning. I certainly understand the situation and your concern. Doc stamps and Taxes need to be paid and these are common with every closing. These should have been on the estimate, to give you an idea but these are something which need to be paid and can not be avoided. As you stated above, what you were provide previously was just an estimate. These numbers change all the time and your broker/lender should have at least added these in, even if it was just a rough estimate, based upon the purchase price. In addition, some lender require more then 3 months escrow, so the fact that they collected 11 months is common also. I myself just bought a home in Florida and these items were 100% on there. It is not a scam, since these have to be paid. At this point, you have a right to question the loan officer and ask him/her why these were omitted, since the doc stamps and taxes are based off purchase price ( which they know) and the escrow is a stipulation of the bank, which they should have also known if they are doing mortgages/loans.

Expert:  RealEstateAnswer replied 3 months ago.

I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!

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