bank refinancing

[elizabeth joy]

Is My Bank Legally Liable For A Payoff Check To A Creditor That Was Supposed To Be Paid When I Refinanced My Home But Was Not Paid. The Creditor Is Now Sueing Me. The Payoff Amount Has Now Accrued Interest And Penalties For Non Payment That The Bank Doesn't Want To Pay. I Don't Think I Should Pay It. I Signed A Contract With Them When I Refinanced. The Agreement Was That The Bank Would Pay This Creditor. For Whatever Reason The Check Never Got To Them. I See It As The Banks Problem. Am I Wrong?

[debtcollector`]

Fix your caps problem and post back -- someone will actually read it.

DC

[dmiller12]

It depends entirely on whether the payoff funds were shown on the HUD-1 Settlement statement or not. If not and instead you received these funds at closing, then you are repsonsible.

If your HUD-1 Settlement statement shows these funds being collected at closing, then you need to contact the title company or attorney that handled the closing and ask them to place a stop payment on the check and issue a new one - that is if the check isn't simply sitting in the file. If indeed it is the title companies fault, then demand they pay all penalties.

If this was a home equity loan or line, all of the above applies accept that the bank may have handled the closing so contact them.

This should be an easy fix. Review the closing statement/HUD-1 thoroughly to account for these funds.