Payoff Request

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
rich126
Posts: 2157
Joined: Thu Mar 01, 2018 4:56 pm

Payoff Request

Post by rich126 »

My settlement is Thursday but the title company can't get my credit union to respond to a payoff request. I sent in an email tonight about the issue and will try to call tomorrow. Seems like it should not be my issue. I provided all my info to the title company weeks ago.

What happens if they don't provide the information?

Is it really the seller's responsibility?

The title company has been a pain to deal with. Every email screams URGENT!!!!!!!!!! Literally from day 1. Unfortunately I had no say in it.

I only owe about $11,000 on the house.
macheta
Posts: 210
Joined: Sat Nov 29, 2014 12:06 am

Re: Payoff Request

Post by macheta »

Call every day at lunch.
Goal33
Posts: 1517
Joined: Sun Apr 12, 2015 12:30 pm

Re: Payoff Request

Post by Goal33 »

I'm sure the agents will pressure the title company to figure it out soon.
User avatar
Watty
Posts: 20951
Joined: Wed Oct 10, 2007 3:55 pm

Re: Payoff Request

Post by Watty »

The credit union was likely closed on Monday for Columbus day which could explain part of the delay.
Goal33 wrote: Wed Oct 14, 2020 12:03 am I'm sure the agents will pressure the title company to figure it out soon.
+1 if there are real estate agents involved they should be keeping on top of it because they will not get paid it the sale does not go through.
rich126 wrote: Tue Oct 13, 2020 11:56 pm I only owe about $11,000 on the house.
If this is for a home equity line of credit then they may be waiting until the last minute to make sure you did not take any more cash out at the last minute.
Topic Author
rich126
Posts: 2157
Joined: Thu Mar 01, 2018 4:56 pm

Re: Payoff Request

Post by rich126 »

Watty wrote: Wed Oct 14, 2020 12:12 am The credit union was likely closed on Monday for Columbus day which could explain part of the delay.
Goal33 wrote: Wed Oct 14, 2020 12:03 am I'm sure the agents will pressure the title company to figure it out soon.
+1 if there are real estate agents involved they should be keeping on top of it because they will not get paid it the sale does not go through.
rich126 wrote: Tue Oct 13, 2020 11:56 pm I only owe about $11,000 on the house.
If this is for a home equity line of credit then they may be waiting until the last minute to make sure you did not take any more cash out at the last minute.
No home equity loan. It was a standard 10 yr loan. Thanks.
Topic Author
rich126
Posts: 2157
Joined: Thu Mar 01, 2018 4:56 pm

Re: Payoff Request

Post by rich126 »

Amazing what gets done when you:

1. Tell the parties that you will not sign any documents if a solution is not found.
2. Tell the parties that further communications will have to go through your attorney.

I know an attorney back east who is blunt and I told him what was going on and he told me a few things and said, if necessary, get him in a conference call. I know many hear are always trying to save money on insurance and penny pinch but when it comes to stuff it is better to have the proper insurance and legal representatives. It will cost some money but they usually prevent the big disaster down the road.

I almost got an attorney to represent me from the beginning because I dread dealing with people on this stuff and I probably should have.

I'm not litigious and have only sued one person because it was a contractor who took my check and kept making excuses until it was obvious he wasn't coming back. He was so bad he had let his business license expired prior to the contract we signed so he was personally liable which made things easier. And so bad that when we went to court they hired an attorney but didn't show up so they had no case and it was quickly ruled in my favor.

Anyhow, for now, this has been resolved. Unfortunately the seller doesn't have a lot of say in the selection of the title company once the offer was accept. I do recall asking my agent about them and he gave a "they are ok" comment.

If I had to do anything different in my case, I would have paid off the loan prior to listing it since it was only $11,500. Once the selling process started I was afraid to do that since I figured it might screw up the process.

Thank and have a good day.
Goal33
Posts: 1517
Joined: Sun Apr 12, 2015 12:30 pm

Re: Payoff Request

Post by Goal33 »

rich126 wrote: Wed Oct 14, 2020 11:24 am If I had to do anything different in my case, I would have paid off the loan prior to listing it since it was only $11,500. Once the selling process started I was afraid to do that since I figured it might screw up the process.
You would have had the same problem if you couldn't get your credit union to give you a payoff statement...
User avatar
8foot7
Posts: 2395
Joined: Mon Jan 05, 2015 7:29 pm

Re: Payoff Request

Post by 8foot7 »

Goal33 wrote: Wed Oct 14, 2020 2:01 pm
rich126 wrote: Wed Oct 14, 2020 11:24 am If I had to do anything different in my case, I would have paid off the loan prior to listing it since it was only $11,500. Once the selling process started I was afraid to do that since I figured it might screw up the process.
You would have had the same problem if you couldn't get your credit union to give you a payoff statement...
Could have paid $12k and gotten a refund. Although then they'd have had to release the lien...so yeah, not great.
arsenalfan
Posts: 956
Joined: Mon Dec 09, 2013 12:26 am

Re: Payoff Request

Post by arsenalfan »

Can someone explain why settlement sounds like everything happens in the last 24 hours prior to it?

From an end-user perspective, cases like this are so frustrating. And having gone through multiple purchases, there's lots of last-minute issues that crop up like this.

Like the larger residential real estate industry, it seems there is ample room for improvement/"disruption".

Or, I guess if you like to procrastinate, this could be your profession?
User avatar
8foot7
Posts: 2395
Joined: Mon Jan 05, 2015 7:29 pm

Re: Payoff Request

Post by 8foot7 »

I think there is always going to be some level of static with so many different entities involved

* title company
* buyer
* seller
* seller's lender, if any
* buyer's lender, if any
* Realtor, if any
* HOA, if any

At some point there has to be a deadline where everyone puts their cash grab number in. The lender can't do it until underwriting gives the all clear, the title company can't do it until it knows a payoff and the realtor cut, the buyer doesn't get a number to bring to closing until all of this is in, the tax office has to be clear in their assessments and record, the HOA has to give their cert if any, etc. So no one really knows anything exact until those numbers come in.

It's probably always going to be a mess, though if more of the players had a bit of tolerance about a day's interest or fees here or there, especially if they'd be willing to get credit after settlement, it could probably be smoother.
User avatar
LadyGeek
Site Admin
Posts: 67335
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Payoff Request

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) forum (payoff).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
User avatar
FelixTheCat
Posts: 1915
Joined: Sat Sep 24, 2011 12:39 am

Re: Payoff Request

Post by FelixTheCat »

Call the bank directly and ask for a payoff amount. It should take them two minutes.
Felix is a wonderful, wonderful cat.
Topic Author
rich126
Posts: 2157
Joined: Thu Mar 01, 2018 4:56 pm

Re: Payoff Request

Post by rich126 »

arsenalfan wrote: Wed Oct 14, 2020 2:33 pm Can someone explain why settlement sounds like everything happens in the last 24 hours prior to it?

From an end-user perspective, cases like this are so frustrating. And having gone through multiple purchases, there's lots of last-minute issues that crop up like this.

Like the larger residential real estate industry, it seems there is ample room for improvement/"disruption".

Or, I guess if you like to procrastinate, this could be your profession?
I partially agree with that comment. I guess once they realized commissions will be lost, the urgency goes up. I believe the owner or someone high up in the title company got involved once my email came in regarding I wouldn't sign documents and all further communications would have to be done via an attorney.

And while tons of people will say it is a waste of money, I think having an attorney is important because no one else there cares about your interests/costs/etc. They simply want the deal done to get their commissions/fees. Most of my moves have been corporate ones where the issues are less.

Even today while signing the documents (via a mobile notary) I refused to sign one and called the title company. The lady wasn't happy because I went over her head yesterday but the document had incorrect numbers (some kind of Closing Disclosure) so I would only sign if I hand corrected the numbers. She kept telling me it wasn't important. Well if it wasn't important, why was I required to sign it?

I'd never do another real estate transaction w/o an attorney.
User avatar
Watty
Posts: 20951
Joined: Wed Oct 10, 2007 3:55 pm

Re: Payoff Request

Post by Watty »

arsenalfan wrote: Wed Oct 14, 2020 2:33 pm Can someone explain why settlement sounds like everything happens in the last 24 hours prior to it?

From an end-user perspective, cases like this are so frustrating. And having gone through multiple purchases, there's lots of last-minute issues that crop up like this.

Like the larger residential real estate industry, it seems there is ample room for improvement/"disruption".

Or, I guess if you like to procrastinate, this could be your profession?
There are two issues going on right now;

1) Companies are slammed with so many people doing refinances right now because rates are so low. There are also lots of home sales that are getting financing.

2) Lots of people are working from home which likely includes the people you needed to get the loan paperwork in order.

With these you can likely expect some bumps in the process and some things to be put off until the last minute.
Post Reply