Am I getting ripped off on escrow fees?

[James Qiu]

I just got approval for a short sale that I'm trying to buy in Temecula CA. The total purchase is only $150K but the escrow company wants both the seller (bank) and me to pay about $1000 each. The bank had only approved $750, so I need to pay $1250 ($250 to cover for the bank's side). I've bought many short sales in the last year or two, and normally paid around $600 to 700 each time. Am I getting ripped off? If so, can I have the file transferred to a different escrow co. by law? I'll try to negotiate but if I fail, what else can I do without walking away from the deal all together?

[Will Barnard]

What does your purchase contract state? If each party was to pay their own escrow, then you are not responsible for paying the difference of the $250 that the bank will not pay.

Secondly, all things are negotiable. I just recently had an estimated close statement show $150 to record a grant deed! I looked at my other recent transactions and they showed that this charge was more thna 3 times the regular amount. I went back to escrow and stated it was an abnormal high fee and I would not pay that much, and they lowered it. I have also negotiated escrow fee charges down on many, many occassions.

Your negotiation skills do not end at acquisition of contracts, they go beyond that, so use them!