Am I liable for a mistake by the title co after closing?
The title company realized after the closing was completed that the loan payoff amount was wrong on the closing statement and now they are trying to sue me for the difference even though the closing statement has been signed and completed. by laleader1055 from Texas City, Texas. Jun 5th 2021
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Unfortunately, you will be financially responsible for the shortage, and failure to pay could result in you being sued. Every title company I have ever worked with has a provision in their engagement agreement that indemnifies them from these kinds of mistakes. Historically, the courts have ruled that if a mistake of this nature is made (the amount collected from the parties in the transaction is insufficient to satisfy "IN FULL" the debts of the liens or loans that are required to be paid off, they have the right to collect the funds from party that actually owes the debt, which sounds like that would be you. If the amount is under $5,000, try and work it out before the lawsuit proceeds. If the amount is more than that, or if thy have actually served you with papers, I would advise seeking legal counsel. Sorry. Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.Licensed in AZ, CA, GA, IL, OR & WA... In fact, NEXA is licensed in all states except MA and NY so give us a call. ~ www.ApplyYes.com 480-889-9000.
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Mistakes happen. You specifically signed paperwork at closing that said you agree to deal with any errors and issues like this. So sorry, you'll have to pony up the money. I lend in MN WI IA SD ND. Find me at JoeMetzler.com - NMLS 274132 Cambria Mortgage
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