Changing closing $ after signing

What is the name of your state? California

Wife and I are buying a townhouse. On 4/14/04 we went to the estcrow co. office and signed the last of the paper work to close estcrow. We were told by the escrow agent that from that point forward the only changes that could be made would be for grammer and such. We were then instructed to bring in a cashiers check for 3K to finish paying closing cost.

Two days later (the day I was going to take in the check), I recieve a call stating that they (escrow co.) had made a mistake on the closing cost estimates and that they wanted an addition 5k on top of the 3K that I was supposed to bring in.

They explained that when they wrote the closing est. that they has written it for 230K where as the sale price is 235K and that I needed to pay the 5K difference.

Q: can they do this, even after everything has been signed?
Q:Am I truly expected to pay for the mistake of the escrow co?

At this point I've refused to resign any amended docs.
Thanks

[JETX]

"can they do this, even after everything has been signed?"
*** Yes. If you read the documents you signed, you agreed to allow them to amend as needed to correct errors.

"Am I truly expected to pay for the mistake of the escrow co?"
*** Yes. Besides, this is also YOUR error. I presume you read the documents before you signed them, correct?? Why didn't YOU say something when you saw the sales price was sales price was $5k too low?? Did you really think that you were going to get a 'freebie'??

"At this point I've refused to resign any amended docs."
*** Okay. And since the escrow office will refuse to pay for the error, you need to contact the seller and negotiate a termination of your existing contract. Of course, the seller will claim breach and keep your earnest money. Then, you can start looking for another property to purchase.
Or, they (either the seller or the escrow company) may just make up the shortage to get the deal done, then file a lawsuit against you to recover their $5000 lost due to your refusal to sign.

Thanks for your response,

I did read the doc. but didn't notice the price, since 1. This is my first time dealing with real estate and 2. I did not notice that the price was 5K lower, because I was busy reviewing corrections from a previous mistake that they had made.

We have never contested the selling price and are still willing to pay the full amount. My loan is for the full amount of the loan, so the sellers will still get their price. So in other words I was not expecting a discount on the price. I just don't expect to be told at the last minute that they admitted to it being their mistake but that I need to make up for it.

The est. says that it's subject to change until the time of final computation of the closing escrow statement. We were led to believe that when we signed all the docs and told to bring in the 3K that, that was the final computation and that funds could not change. This was told to us more than once, by the agent who is also the notary.

So, if I'm understanding your response (thanks again) unless the seller is willing to terminate or the escrow co. is willing to correct their admitted error I'm stuck with the deal, correct?

[HomeGuru]

If the HUD-1 as amended is correct, then pay the $5K.

[JETX]

"So, if I'm understanding your response (thanks again) unless the seller is willing to terminate or the escrow co. is willing to correct their admitted error I'm stuck with the deal, correct?"
*** You got it.

Ok, Thanks

[HomeGuru]

Can you tell us what's the difference between a liittlefatguy and a bigfatguy?

I could but it's probably not a big difference.

Acutally, that nick was given to me some time ago when I topped 200lbs and only stand 5'7" (presently down to 170lbs). The nick has just stuck, while the weight hasn't.

[JETX]

One's Japanese, ones Samoan.

[HomeGuru]

Good one.

[JETX]

[HomeGuru]

Originally posted by littlefatguy
I could but it's probably not a big difference.

Acutally, that nick was given to me some time ago when I topped 200lbs and only stand 5'7" (presently down to 170lbs). The nick has just stuck, while the weight hasn't.

**A: very commendable.