Sunday, July 08, 2012

What do you do when you find errors after closing?

Hello Diane,
I bought a house in Florida 5 years ago. I recently discovered that my HUD is incorrect. I do fault myself for not paying more attention even though I was being rushed through the process by the title company on the day of closing.
It has become apparent that my purchase payment is $7,000 more than my purchase contract and the property address is also incorrect. The address and parcel ID on the Warranty Deed is also incorrect although the legal description is correct. What can I do about this now?
I thank you in advance for your time and look forward to your reply.

Hi, M:

I would write a letter to the company who handled the transaction with a copy going to your mortgage lender and real estate agent, if applicable.  Ask for an explanation of the $7000 purchase payment discrepancy.  There may have been a misunderstanding which their explanation will resolve.  If, however, they cannot explain it and you believe there was an error or some kind of fraud, you should follow with another letter which would be a formal demand for correction.  I always believe a demand letter should be sent via certified mail.  This shows you are serious.  If you aren't satisfied, you could hire an attorney to assist or perhaps talk with the Florida attorney general's office.  They should have some formal mechanism for handling consumer complaints.  It works like the Better Business Bureau but has teeth.

As for the deed, I would request that whoever insured your purchase transaction - the title company - create a corrective deed.  In my opinion it could be a deed from you to you simply to correct the parcel ID and address.  Since the legal description is correct, I don't see any reason they would have to go back to the seller.

You can handle both of these problems in the same letters, however, be sure to keep it easily understood that there are two issues and that you want them both resolved.

Good luck and I hope this helped.  ;)


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