Title/ Escrow Company Error

[Trauma Nurse]

What is the name of your state? *Nevada*

My wife and I refinanced our home late last year. A prepayment penalty was expected and accounted for in the loan. The old lender sent a demand letter to the escrow company for the prepayment penalty, which it paid a week prior to closing.

At close of escrow we were assured all debt was paid, including the prepayment penalty. Checks were distributed to us for other debts which we mailed to the debtors. We used the left over monies to fund various projects around the house.

A week or so later we received a phone call from the escrow company demanding repayment of ~$6000.00. They stated we had been "unjustly enriched" and would refer the debt to a collection agency if not paid immediately.

That amount was not available to us and to this date we have been unable to come up with $6000 to satisfy the debt. We have been forced to perform another refinance to obtain the funds. We have asked that the title and escrow fees be refunded as the error, we believe, lays solely on their end. They removed $700 and advised us that no more would be removed.

The prepayment demand letter as well as the signed documents were sent to us by the escrow company. The wording in the contract indicates that if any funds were required after the close of escrow, we would be required to pay the full amount.

I am uncertain if we should contact a lawyer to explain how we are responsible for a huge oversight on the part of the escrow company.

Any help is greatly appreciated.

[MortgageGuru]

Contact the loan officer that handled your loan and get him to send you a copy of the payoff letter that was sent from your previous mortgage company. I have NEVER seen a title company pay ANY amount to anyone in advance of closing. Investigate your refinance and justify EVERY PENNY accounted for on the settlement statement. Get the lender to send you copies of all invoices as well.

[Trauma Nurse]

Well I am looking at the settlement statement and the records of transactions from the previous lender. The final settlement statement indicates an amount larger than the amount received at the previous lender (the lower amount + the alleged pre-payment added up penalty seems to have brought the balance to zero)

Example:
Settlement statement Payoff to lender (payoff from lender 267k) 270k
Actual payment received at lender (credited remaining balance) 262k
Amount of prepayment penalty (sent separately) 6k

Who would be the best person to review this, an attorney or accountant?