Am I responsible for a clerical error on escrow company’s part after my refinance has funded?

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Am I responsible for a clerical error on escrow company’s part after my refinance has funded?

I just refinanced my home. The loan has closed and was funded. The escrow company is now asking for another $500 due to a clerical error on their part; they say the payoff amount for my original mortgage is short by this amount. I see no discrepancy between the HUD1 I signed and the payoff demand from the original mortgagor. Now, they are trying to send me a new HUD1 to sign. Am I responsible to pay these additional funds?

Asked on November 24, 2011 under Real Estate Law, Maryland

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If escrow has closed on the refinance of your loan and there was a disclosed mistake by the escrow company that came to your attention after close of escrow with respect to the $500 amount that you have mentioned in your question, you have no obligation to sign another HUD 1 statement nor to make any additional payment of money out of your own pocket

The purpose of escrow is to make sure that the numbers balance on your refinance and all parties to the escrow get what they are entitled to. When escrow makes a mistake, escow has to pay for it out of its own monies.


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