Title Company made mistakes on HUD?

Question

Hello, I closed on a property today and looked at the HUD thinking I was over charged, but she seemed sure it was the assessments from counties etc that made it seem that way.   Well, I called the county and she made mistakes on the HUD with the county.  What can I do at this point?  If she doesn't pay up, what can I do?  Thanks.

Steve Babiak · Answer

Make sure you understand how they pro-rated all charges BEFORE you sign the HUD1 ...

J Scott · Answer

It may be too late now that there have been two closings, but if the closing attorney has any integrity (and assuming the original contract is clear), he should make it right by either collecting the funds from the original seller or cutting you a check directly.

In fact, I'm sitting here with my closing attorney right now (a good friend of mine), and I just confirmed that that's what he'd do (get the money from the original seller or cut a check out of his own account).

Bill Gulley · Answer

The attorney who closed it may well be the title insurance agent. Go to the office and tell them you want to file a claim. If they refuse, contact the Department of Insurance for your state and file a complaint. Title companies will find any excuse to cover their agents, so it may take awhile.

How much money are we talking about here anyway?

If you have both HUD statements and get a receipt/statement from the assessor, you can show the error. You might consider small claims court as well, probably be quicker.

J Scott · Answer

The seller has no responsibility to return your calls.  The closing attorney, on the other hand, does.

Tell them you will be filing a title insurance claim for the cost of the taxes...I have a feeling once they know they'll have to get their insurance company involved, they'll talk to you...

Greg P. · Answer

Update.  Both the seller and closing agent who are "great" friends are not deciding to return my calls or emails.  Do I threaten them with a court order?

Greg P. · Answer

Thank you.

Jackie Patterson · Answer

It's not unusual to have mistakes on the HUD.  You really need to understand it, and review it everytime, and be sure it meets all the terms on the Buy-Sell.  I routinely have to send a HUD back for a correction before I approve it for a closing.  We do closings all over the country with many different title companies, and it doesn't seem to matter which title company you use.

Greg P. · Answer

Hello J, the assessments were suppose to be paid by the seller (wholesaler) who sold it to me.  Then when I sold it to my end buyer, it was paid by me because the title company made some excuses.  So I ended up paying even though the wholesaler was suppose to take care of it.  Btw, the wholesaler and title agent are "good friends."  Thanks.

J Scott · Answer

Wait a sec...

It sounds like when you purchased the property, there were assessments that were owed that weren't paid by either you (the buyer) or the seller.  Is that correct?

If that's correct, then the closer made a mistake, as ultimately that assessment will cloud title.  So, either the closing attorney should fix the mistake or run the risk of a title insurance claim.

I could be wrong, but that's how I would look at it...

Greg P. · Answer

Yes, that is basically what happened but it wasn't with the taxes, it was with the back assessments on the property since it was a foreclosure.  How did it end up in small claims?
thank you.

Title Company made mistakes on HUD?

Most Popular Reply