mortgage company won't refund overpayment

[nulyte]

What is the name of your state? Delaware

Help. We recently re-financed our home loan. Our original loan was with Wells Fargo. We were given a pay-off figure and our broker sent Wells Fargo extra money. We have a copy of the pay-off check. Wells Fargo also charged us for our 2006 county taxes in the pay-off but didn't pay our taxes. We have proof from our county. Now when I call for the refund they state the pay-off was paid exactly as printed. I have shown them proof that they were paid $124 more. I have also requested the tax money back. They then stated that they reviewed our payment history and forgot to charge us some late fees. Isn't the wriiten pay-off a legal binding agreement? Can they really go back now and say we owe them more? We made settlement in August.
Any advice is appreciated.

[alent1234]

ask to see proof of the late fees, what were they for? did you stop paying the mortgage during the refi process?

[danno6925]

The tax monies are to be held in a seperate escrow account and are not to be used by the lemder for ANY other purpose. If WF wanted to collect a late fee, they should hae added it to the payoff. Contact them and demand to know why they have illegally mishandled your funds. This shocks me a little, since I deal with their corp. on a regular basis, and they've always been rather fast about resolving these types of issues. Is it possible you really were late? Either way, they shouldn't have applied your escrow monies to the payoff no matter what. They have a fiduciary responsibility to disburse your funds properly from that account. Funds from that account are to either be disbursed to pay taxes, or refunded to you within 45 days of settlement.

Have an attorney draft a demand letter for you to be sent certified RRR requesting the cash or concrete evidence you did not pay on time, when you didn't pay on time, how many times you didn't pay on time and the fee for each infraction. You will want to have your own proof (bank statements, cancelled checks, etc.) that you did not pay late at any time during the mortgage period. If they state you paid late when you didn't, have the attorney who drafts the leter sue them.

[Rhubarb297]

Originally Posted by danno6925

The tax monies are to be held in a seperate escrow account and are not to be used by the lemder for ANY other purpose. If WF wanted to collect a late fee, they should hae added it to the payoff. Contact them and demand to know why they have illegally mishandled your funds. This shocks me a little, since I deal with their corp. on a regular basis, and they've always been rather fast about resolving these types of issues. Is it possible you really were late? Either way, they shouldn't have applied your escrow monies to the payoff no matter what. They have a fiduciary responsibility to disburse your funds properly from that account. Funds from that account are to either be disbursed to pay taxes, or refunded to you within 45 days of settlement.

Have an attorney draft a demand letter for you to be sent certified RRR requesting the cash or concrete evidence you did not pay on time, when you didn't pay on time, how many times you didn't pay on time and the fee for each infraction. You will want to have your own proof (bank statements, cancelled checks, etc.) that you did not pay late at any time during the mortgage period. If they state you paid late when you didn't, have the attorney who drafts the leter sue them.

Good advice though my dealings with Wells Fargo have not at all been positive. I think they are one of the worst lenders to deal with.

The person should be told to contact his title insurance company. The title insurance company ensures the new lender is in the first lien position. So if WF is saying the payoff is insufficient and won't release the lien, then the title company will go after them.