Miriam Odegard, Real Estate Broker Serving Greater Indianapolis (United Real Estate Indianapolis )

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Rainmaker
1,412,784
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Pre-payment penalty?  Screw-up on the lender's side?  Screw-up on escrow's (or closing company/lawyer/etc.)'s side?

Jan 21, 2022 08:20 AM
Rainmaker
1,318,392
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

No, I've had Payoff Demands end up higher a week before escrow because of forbearance penalties a seller "forgot to mention". Hmmm, that seems like a huge error on the part of the bank/lien holder or the escrow company. 

Jan 21, 2022 07:00 AM
Rainer
8,743
Ted Spradlin
First Capital Trust Deeds dba First Capital Funding, Inc - Bend, OR
MLO 214130, NMLS 1165726, CaDRE 01460170, 01947341

That's odd.
What was the date of the payoff from the morning?
Had it expired and they were in a per diem situation?
Or, was it a private loan (hard money) where default interest had kicked in at 18-24%? 
I've definitely seen situations where the payoff is higher due to default interest or other charges that hadn't been initially accounted for like when we've had 1 loan encumbering 18 properties where the servicer needed to file reconveyances on all 18 properties. Recording fees start to add up. 

Jan 21, 2022 08:08 AM
Rainmaker
4,330,219
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Nope... this is a new one on me. 

Jan 21, 2022 07:41 AM
Rainmaker
1,748,138
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Never seen it happen but evidently it can. We are an attorney state so I bet there would be alot of screaming going on. Someone forgot something for sure.

Jan 21, 2022 09:47 AM
Rainmaker
572,794
Jason E. Gordon
AmeriFirst Financial Inc, San Diego, CA - San Diego, CA
Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE

While it is fairly common for Payoff Demands to come in higher than the mortgage balance shown on the credit report and/or mortgage statement, it seems quite bizarre to have such a disparity between Payoff Demands received on the same day.  Any idea what the $5000 difference was attributed to (on the itemized Demand)?

Jan 21, 2022 09:40 AM
Ambassador
3,118,712
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I have not. That would be a nice surprise for a client. 

Jan 21, 2022 09:36 AM
Ambassador
4,681,711
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

No, not at the last minute. Big goof on someone's part.

Jan 21, 2022 09:32 AM
Rainmaker
2,668,483
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I understand how it could happen but it should not happen is the end result

Jan 21, 2022 08:36 AM
Rainmaker
783,870
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

I've had clients think their balance was their payoff and it wasn't.

Jan 21, 2022 01:54 PM
Rainer
341,875
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Show me both and I can explain. Forbearance plan? Missed January payment and big late fee added? Forced place hazard insurance? Did the seller wait until the last day to provide Statement of Information and title found something? Payoffs have an expiration date.  Yes it could happen that the payoff ordered expired and recent fees added, it is rare that a payoff dated from 1/21 in the morning would be different 1/21 afternoon.  Is title able to ACH the funds on 1/21 or is the money going to the servicer 1/26. Payoff Demands are regulated.

Jan 21, 2022 12:26 PM
Rainmaker
551,617
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

That is very strange.  I have never had that happen to me. Sounds like someone made a gross error?

Jan 21, 2022 11:23 AM
Rainmaker
935,215
Peter Mohylsky. BRIX REALTY
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY -DESTIN

Nope, hopefully there will be no more surprises

Jan 21, 2022 10:38 AM
Ambassador
3,350,271
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

That seems very odd to have one amount given in the am and then BAM .... 5K higher higher at closing. Someone made a mistake.

Jan 21, 2022 09:59 AM
Rainmaker
1,021,591
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

No, have not had this happen! Not a pleasant surprise

Jan 21, 2022 09:49 AM
Rainmaker
6,850,568
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I do not recall this happening. 

Jan 21, 2022 08:13 AM
Rainmaker
5,157,779
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Was it a payoff amount or the balance given to the client?    If their payments are that high, that could be the difference.   Plus our title companies add another day or two, just in case the wire doesn't hit.  Cannot transfer property with any outstanding debts.

Jan 21, 2022 06:51 AM
Rainmaker
975,916
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Our title/escrow companies collect some what more on payoffs the needed just in case the quoted amount is incorrectly too low. Once escrow closes, and the new deed is recorded it can be hard to collect on a shortage and the title/escrow company does not want to be left holding the bag. The lender will keep the amount needed for the payoff and return the rest with the final paperwork to the seller.

Yet...$5,000 does seem like a large discrepancy. A full explanation is needed

Jan 21, 2022 02:16 PM
Rainmaker
675,630
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Yes, I once had a lien show up at closing.  The homeowners expected it and paid it.  I was clueless for some reason.  Something slipped through the cracks and I'm not sure how it happened.

Jan 21, 2022 12:19 PM
Ambassador
996,270
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MT, NC, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Yes, the payoff provided to customers are often inaccurate and either don't reflect accurate per diem interest, or recording fees, or something else missing.  Sometimes there are additional line items not present on the consumer copy, as well.  

Jan 21, 2022 11:43 AM
Ambassador
3,059,458
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Nope, never had it be off more than by a couple of days interest added.  I did recently have to explain it "goes up for 30 days" then down upon every payment to a seller who didn't understand that interest is paid in arrears each month.  But once I explained and showed them on paper how it works they understood 

Jan 21, 2022 02:35 PM
Ambassador
2,715,974
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

From what I understand, three people may have been involved:

1. Who's on first.

2. What's on second.

3. I Don't Know is on third.

Jan 21, 2022 02:11 PM
Ambassador
5,605,280
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Ocwen?

 

Jan 21, 2022 01:26 PM
Ambassador
4,417,454
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Good Evening! Yes, it happens all of the time. The payoff the attorney is given is always higher than what the seller gets from the bank. This is because interest for 3-7 days is typically added to the balance and sometimes the sellers have not made their last payment. It will all balance-out after Closing.

Just let your sellers know that if they over-pay the balance at Closing, the bank/credit union will refund the over-paid balance within about 3-4 weeks.

Jan 22, 2022 09:39 PM
Rainmaker
4,410,381
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Time for a one on one conversation with someone in charge. Luckily never happened to me

Jan 22, 2022 04:50 AM
Rainmaker
506,771
Matt Brady
Finance Of America - Del Mar, CA
One of San Diego's Best Lenders

The payoff demand based on the closing date from the lienholder is all that matters. The client may have asked the bank for a balance, not a payoff. Every mortgage is 30 days in arrears plus any per diem. An estimated closing statement usually prevents any last-minute surprises.

Jan 25, 2022 08:42 PM