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We bought out first home in TX 2 years ago, we are now selling it. We had a realtor, trusting everything she did.
In the 2 years we have refinanced and going over our Settlement Statement, we noticed the 2 personal checks we wrote were added into our mtg loan.
(1) Deposit Earnest Money “To Seller’s Lawyer” $500.00
(2) Deposit Option Fee "To Seller’s---------------$ 25.00
Is there any way we can get the $525 back, since it was added into our mgt loan, which it should have been deducted?
THANKS
Are you sure these amounts were added in to the total? Were they appended with the notation POC?
We have a VA loan
Sales Price:--------------$76500.00
Settlement to Borrower–$ 5365.27
Borrower Must Pay------$ 81865.27
Borrower Paid E.Money------$ 500.00
Borrower Paid Option Fee----$ 25.00
Amount of New Loan----- $ 78795.00
County Taxes----------------------$ 1043.76
Borrower Must Pay----------$ 80363.76
Subtract
$$81865.27
–$$80363.76
$$1501.51 Paid Closing Cost
–$500.00 paid before closing
-----$25.00 paid before closing
$$976.51 Should have Paid Closing Cost
We are now selling this house, by ourselves and we went to the title co. We were told any Earnest Money, will be subtracted from their closing cost.
If closing cost is $1500 and they paid $500, they owe $1000/Not $2000.00
You have already gotten credit for the $525 that you paid.
81865.27 Borrower must pay
-78795.00 Amount of new loan
-----------
3070.27 Amount due at closing
- 1043.76 Property taxes paid by seller
- 525.00 Escroll and option fee
------------
1501.51 Due from buyer at closing
HTH,
Wilson
They subtracted the 2 “borrower must pay” to get my closing cost. As I stated.
$$81865.27
$$80363.76
$$1501.51 Paid Closing Cost
They did not subtact “Borrower Must Pay from New Loan Amount”
The way you did it, is possibly the way they did estimate my C.C, but showed it a different way on paper, that’s where the confusion is.
What I wrote is the way it’s on paper, that’s the way I see it. If they did it that way, then it should have been on paper that way.
Thank you for helping out, I do see what your talking about. I know R.E. is a tricky business and if you don’t know what’s going on you can get screwed. I’m learning what I can, so I know what not to do next time.
I believe that your confusion comes from the order that the items are listed on the form. You need to look at this form from the perspective of the title company. They are a disinterested third party that must account for every cent that they are trusted with and give an accounting of those funds. The page would be like a balance sheet in accounting. The top and the bottom must be equal. The top portion is fairly self explanatory. It consists of the sales amount and the closing costs to come up with an amount that are coming in to the transaction. The second portion is the outgoing portion. It consists of all of the monies paid to make the transaction balance. The first two (option fee and escroll) are paid by the buyer, the third is paid by the mortgage company/bank (mortgage), and the fourth is paid by the seller (prorated portion of the taxes). The last amount to make the top and bottom balance is the amount paid out of pocket at closing by the buyer. If you add the total of the top and add all of the amounts on the bottom, you will find that the amounts are equal.
I hope that I explained that to where you can understand it and didn’t just muddy the water further. I started to present a scenario and explain each step, but I decided that it would just confuse the issue worse.
HTH,
Wilson