Mortgage co. payoff file delay

CoopSeller · #1 10-09-2005, 06:53 PM

New York.

We are trying to close on the sale of our coop and the mortgage company has not yet sent the payoff file to their attorney - everything else is in place and we fear that our buyer's mortgage commitment will expire. How long does the mortgage company have before they are required to send the file to their attorney?

HomeGuru · #2 10-09-2005, 10:29 PM

Quote:

Originally Posted by CoopSeller

New York.

We are trying to close on the sale of our coop and the mortgage company has not yet sent the payoff file to their attorney - everything else is in place and we fear that our buyer's mortgage commitment will expire. How long does the mortgage company have before they are required to send the file to their attorney?

**A: there is no set date.

CoopSeller · #3 10-10-2005, 07:13 AM

Does this mean there is no legal recourse if we lose our buyers when their loan commitment expires? A mortgage company can simply not supply needed documents to close and have no responsiblity?

JETX · #4 10-10-2005, 08:05 AM

Quote:

Originally Posted by CoopSeller

Does this mean there is no legal recourse if we lose our buyers when their loan commitment expires? A mortgage company can simply not supply needed documents to close and have no responsiblity?

Can't say that there is NO liability... cause in some extreme cases there could be.... but very unlikely in THIS case.
What did they say was the delay?? This is a fairly easy process.

CoopSeller · #5 10-10-2005, 08:18 AM

They offer no explanation other than"the file has not yet been sent". It is impossible to get anyone who will take any responsibility at the bank (Chase). We have never been late paying our mortgage.

JETX · #6 10-10-2005, 08:31 AM

Quote:

Originally Posted by CoopSeller

They offer no explanation other than"the file has not yet been sent". It is impossible to get anyone who will take any responsibility at the bank (Chase). We have never been late paying our mortgage.

Then simply run an amortization table for your loan.... and then ask the title company to escrow sufficient funds to cover any 'over/under'.

CoopSeller · #7 10-10-2005, 09:07 AM

But don't we need their attorney at our closing to file the ucc termination and such?

nextwife · #8 10-10-2005, 09:34 AM

In our market, the title company gets the USS terminations and other recordings.

Obtaining timely payoffs has become a significant problem with some out of state lenders. I have even encountered some mortgage servicers that have no menas of accessing a human being to discuss an expedited payoff, the ONLY option is to press a given extenmsion in their "menu" and then punch in the loean number and the fax to which it should be sent at the prompts.

Some charge a large fee to fax, rather than snail mail, their payoffs. Some add an extra fee if a payoff faster than two week turnaround is needed (and in our market, because we table fund, it is almost always needed within a few days). Oddly, the LOCAL lenders are always very good about prompt turnaround on payoffs.

No, there is little you can do about not getting a payoff. As stated, you can allow the title company to hold excess funds until the final payoff arrives.

seniorjudge · #9 10-10-2005, 09:50 AM

Quote:

Originally Posted by CoopSeller

New York.

We are trying to close on the sale of our coop and the mortgage company has not yet sent the payoff file to their attorney - everything else is in place and we fear that our buyer's mortgage commitment will expire. How long does the mortgage company have before they are required to send the file to their attorney?

Have you ever been late with your payments?

Even one?

If so, the file gets sent somewhere else and then you are fighting a bureuacracy.

Well, you're fighting one anyway; these lenders are slow even when you do have a perfect payment record!

CoopSeller · #10 10-10-2005, 10:15 AM

O.K., so if I understand this correctly, the closing can occur as long as we have the title company hold the funds. And it sounds as if you are saying that the mortgage company's attorney does not need to be present for this to occur.

Will this free us to go on to our next closing, which is the purchase of our house?

And, no we have never been late with a single payment.

Thanks so much for all your replies!

Samm1970 · #11 10-10-2005, 12:48 PM

It's really up to the title company whether they'll close without a payoff statement.

Bring your most recent statement and a copy of your note to the title company and explain what's happening. They may be willing to close the loan with some money in escrow. It might be a pretty big amount though. It's their responsibility to make sure the mortgage is paid and clear title is granted.

Might even want to bring a copy of the canceled mortgage check for your last payment in case they have any question about whether the last payment was made.

seniorjudge · #12 10-10-2005, 02:14 PM

Quote:

Originally Posted by Samm1970

...It's really up to the title company whether they'll close without a payoff statement....

True; closing without a payoff statement is a sure way to get the insurance regulators jumping on you.