Title Company Added $2000 Fee To Closing

[David Smith]

I'm very new to this game and recently got a great price approved for purchasing a short sale. The bank approved $500 in payments to the title company but the title company has added a $2000 "service fee" that they say I have to pay.

Now, $2000 isn't worth losing this house over, but $2000 is still a lot of money. Does this smell fishy to all of you? I never signed anything saying I would pay $2000. This is an all cash deal FYI.

Thanks for any insights.

[J Scott]

As the buyer, depending on what state your in (perhaps any state), you have the right to select your title/closing company, not the seller. If the Listing Agent is trying to force you to use a specific title company, that's a violation of RESPA rules, and you should refuse.

At very, very least, show up to the closing and tell the title company you refuse to close until the fee is removed. Then let the title company and the seller decide if they want to lose the deal over this.