$2500 Title company closing error, They are asking for more $

[Steve Sayler]

The Title company's closing HUD-1 documents had an error. The closing documents were all signed, last week. Now, they say that they made an error. They are asking me for $2500 more. Apparently line 802/803 (origination fee) was not included in the closing.

I did the closing remotely last week (I live in another state). Before the closing, I talked to the title company owner/closer via phone, where we went over each line of the HUD-1 form, a few days before the documents were signed.

I never saw the lender's HUD-1 form until today. The lender emailed me the HUD-1 form that they sent to the title company. Apparently the origination fee was not entered into the closing documents correctly.

The complication is that the purchase was part of my ROTH IRA. Which means that now I have to make an additional request to the Self-Directed IRA custodian, which in turn, needs to submit a wire transfer for my checkbook LLC account, to send more funds to the title company.

Is this common?   What are my options at this point? 

[Wayne Brooks]

This was a fee you owed, and knew about/agreed to at some point. You signed documents at closing agreeing to fix these kinds of errors.