Legal Question in Real Estate Law in Illinois

We recently had a seller closing where we were told at the closing we needed an additional 19,000 to complete the closing because there was an 18,000 NO interest baring loan set up by the fha that was not disclosed by the mortgage company at the time payoff amount was requested 2 months prior. what can we do and who is responsible for this error?

Asked on 8/05/17, 2:01 pm

1 Answer from Attorneys

This is very confusing. What do you mean a "seller closing"? Was this a refi? If so your lender should have ordered a title commitment that should have shown any mortgages of record. If there was another mortgage, that would be a title insurance company error. However in refi's borrowers generally do not get their own title insurance, only the lenders do, so they're protected, and I find this to be a mistake. But you may need to see an attorney who can set this straight.

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Answered on 8/06/17, 11:34 am

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