Hi everyone, A little bit of background information. Put an offer in and had it accepted back in June. Closing was set for August 3rd. Seller was asking $398k. Seller accepted $395k and max contribution of 3% of seller paid closing and prepaids. Everything seems to be going well, get locked in a 30 year 5% down conventional mortgage at 2.99%. Today, 4 days before closing, my real estate agent asked me to call him. He told me he just heard from the title company’s attorney. Apparently just today, they found that the seller would be 26k short of payoff from their bank for the mortgage after 3% prepaid closings etc and real estate commissions. On Monday, July 27, we received and email from the title company “ I am happy to advise that we have satisfied all requirements on our Title Commitment. I will now be transferring your file to our closing department.” now all of a sudden they are finding out the payoff would be 26k more than what the seller would be netting after all expenses?? Do we have any recourse here? The title company attorney said that we could take 2% closing and prepaids and reduced commissions from both agents to get closer, but the seller would still be about 11k short of the payoff. Is it not the title company’s job to have found out the payoff weeks ago? The other option the title company attorney suggested was that the house could maybe be approved as a short sale- but then again there is no guarantee for this! The house has a deed in lieu of foreclosure if that changes anything. Thanks in advanced for any help you can offer!
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source https://www.reddit.com/r/RealEstate/comments/i0zb44/need_some_advice_on_payoff_amount_issue/
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