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Closing Attorney Made Error

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What is the name of your state? South Carolina

I closed on a Home Equity Loan in late June, 2002. After I applied for the loan I contacted a local attoney to handle the closing. The attorney contacted the lender to get a loan amount. The lender gave the attorney an amount (estimate), as the appraisal was not yet completed. The attorney says the lender also required them to fax a Title Insurance Committment before the lender would release a loan package to the attorney. As the attorney has to enter an amount to prepare a Committment, they used the estimate provided by the lender.

When the package arrived the loan amout was $3,000 LESS than the estimate (the appraisal came in lower) and the attorney says the lender did not alert them to the change. The attorney prepared the closing documents based on the higher amount. We closed, waited for the recission period to end and I picked up my check from the attorney.

The attorney called my wife about two weeks ago and said I should come by their office ASAP and sign revised papers and bring them a check for $3,000. I used that monet to pay heavy medical bills for my wife so I don't have it. I tried to work with the lender to increase my loan by another $3,000 but they refuse.

Both the lender and attorney talk like it's not their fault and I'm left holding the bag!!! I have nothing but questions -

- Am I liable for the error? I always pay my bills and have no problem repaying the money over the term of the equity line. But I CANNOT pay it in a shorter term.

- Who does the attorney represent in this transaction? I paid him for the closing. I thought I was paying him to avoid errors like this.

- Any suggestion for a plan of action? I was planning on meeting him later today.

Any advice is appreciated!


Senior Member
The lender or attorney overpaid you so negotiate a payment plan to pay back the money.
If you hired the attorney as your personal attorney that is your attorney. If you hired the attorney as a closing attorney, then he/she is a disinterested third party closing facilitator.

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