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Arrears found way after closing...

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J

jfkfc

Guest
What is the name of your state? New Jersey

I closed about 3 weeks ago, and just found out that one of my accounts (not sure which one yet, second mortgage or home equity loan, something that was paid off of the top from the sale of the house), returned the check because it was not enough. It seems that my lawyer was contacted by the buyer's lawyer in a dither because of said check being returned due to arrears improperly calculated. The buyer's lawyer literally waited until the last minute to get all of the numbers together, and everything seemed to be a hassle. We disclosed all, provided account numbers and phone numbers so payoff amounts could be obtained. All of a sudden, we get a call from out of nowhere telling us we have to cough up another $2900 (estimated)?

I would guess I have little recourse but to pay the owed amount, but I always appreciate free advice, to see if I have an option or two. Should my lawyer have done more to prevent this?

Thanks in advance, and like always, any help/advice is greatly appreciated.
 


HomeGuru

Senior Member
jfkfc said:
What is the name of your state? New Jersey

I closed about 3 weeks ago, and just found out that one of my accounts (not sure which one yet, second mortgage or home equity loan, something that was paid off of the top from the sale of the house), returned the check because it was not enough. It seems that my lawyer was contacted by the buyer's lawyer in a dither because of said check being returned due to arrears improperly calculated. The buyer's lawyer literally waited until the last minute to get all of the numbers together, and everything seemed to be a hassle. We disclosed all, provided account numbers and phone numbers so payoff amounts could be obtained. All of a sudden, we get a call from out of nowhere telling us we have to cough up another $2900 (estimated)?

I would guess I have little recourse but to pay the owed amount, but I always appreciate free advice, to see if I have an option or two. Should my lawyer have done more to prevent this?

Thanks in advance, and like always, any help/advice is greatly appreciated.

**A: I have no opinion since I do not have all the facts.
And neither do you.
 
J

jfkfc

Guest
Let me see if I can provide you with more info (now that I have more myself):

In regards to my primary mortgage, the check paid to the mortgage company was returned. They are claiming that foreclosure proceedings started the day (or the day before) of our closing, and an additional $2900 is being sought. Admittedly, my wife and I were pretty well behind on the mortgage (reason for selling), and we kept the company in the loop (providing them with our attorney's name for information about the closing/sale of the property, updating them with our rescheduled closing date). I am told that the mortgage company had sent an estopple letter with the required payoff amount (the amount of the check sent to the mortgage company) as of the closing date. My attorney is advising me that my options are to pay them the money and take them to small claims or to just not pay, which would involve the buyer who might sue me in turn. I dread paying this money for the fear of seeing this sum for the last time, but the thought of involving the buyer in any way sits quite wrong with me.

I hope I have provided you with enough relevant information to help you help me. Again, your replies are appreciated.
 
W

WCC

Guest
your lender provided an estoppel with a good thru date, correct? the check was received by the lender before the expiration of the estopple letter, correct? if so, pay the $$ but get copies of estoppel and any other pertinent docs and have an attorney prepare a letter on your behalf if you complied with their written payoff instructions and if that doesn't work, SUE EM'!! good luck...
 
J

jfkfc

Guest
Thanks for the note. I have a copy of the letter, and buyer's lawyer got them to lower the amount by almost $1500. We are paying the 15, and are then going to sue (provided lawyer's bill doesn't exceed).

Thanks again, much appreciated
 

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