All Forum Posts by: Phillip M.

Jerry, thanks for the info, and putting the situation into a Florida context.

I have already posted what it says in the contract: "seller will pay for owners policy and charges". I have not seen a complete fee sheet from the title company since their fee is being paid by Freddie. They are simply notifying me very close to closing that they will be charging me $250, as well as the doc stamp and recording fees. For closing cost estimate, my agent referenced another Freddie contract that did not have this fee. I don't know if it was the same title company.

Scott, I have learned a great deal from reading your posts and blogs. You clearly know the business. I guess we just disagree on what should be spelled out in a real estate transaction.
I never agreed to hire their attorney. I agreed to let the bank pay for the attorney and other title costs, in execution of a title transfer that benefits both parties.
My realtor provided the list but the fee was a surprise to her as well.

Okay, I appreciate the feedback.
As per BP, this was a cash offer, no contingencies. I did ask the realtor to provide a list of closing costs right after I sent in a !0% EMD. I was not expecting closing to be free. I have been through this several times before. The big item on the list was the FL doc stamp (0.7%). I checked the contract and it was clearly stated that the buyer has to pay that. No problem. Everything else on the list was minor.
The FL contract and Freddie addendums leave no stone unturned. I can't see where I am responsible for a fee from a servicer that is working for someone else, unless I agreed to it verbally or in writing. What else does the title company do beside provide the title and policy? Why isn't "customary" buyers fees spelled out in the state contract or the addendums?

I guess I really am complaining that a business can charge undefined customary fees at the last minute in a transaction and no one says anything.

I don't think I am being naive or ignorant. The contract that the seller signed simply states that the seller "will pay for owners policy and charges". It doesn't matter how they slice and dice that up. I sent an email to my agent stating if I have to pay it, I will file complaints with the RE commission, state attorney general, better business bureau, etc. This is last minute extortion and I don't like being played.

The instructions from the title company just simply state: "the buyer is hereby notified that certain fees will be charged by New House Title, LLC, as part of the closing process".

Can they really force me to pay this since it is not in the contract? I thought I was going save some money with Freddies free policy.

I finally (long story) have a signed contract with Freddie Mac on a REO foreclosure in Florida. The contract states that "seller will designate closing agent and pay for owners policy and charges". I received the closing package today from Freddie's title company and it states that the title company will be charging me a "settlement closing fee" of $250.
Can they do this? I complained to my agent but have not heard back yet.

I think it is discrimination. They are discriminating based on home ownership status. Some banks and sellers discriminate based on credit score, income, occupation, earnest money, marital status, even friendship. I think those are all are legal. But some types of discrimination are easier to accept than others. My wife and I lost an offer on our first house because we were not married at the time. We were not happy and felt disrespected. Life is not fair, and more so it seems in real estate transactions.

Thanks for the info. I had not read about the 203k program. It could simply be that one of the short sale buyers had enough lead time to get the money together.
On the other hand, it's annoying to think that someone gets to the front of the line by being dishonest, and every body involved looks the other way.

Great site, learned a lot by lurking here. I finally have a good question. I have been watching REOs in FL for the last 2 years. One short sale property that I have been watching finally was foreclosed by Freddie Mac last month. I was never able to see it because it was always (several times) under contract when I was in town. It was recently listed "As Is" at a good price and went under contract to an owner occupant in the first 15 days. I do not qualify because it would be a second home or rental for me. Realtors all have said it needs a lot of work.

How can the owner occupant realistically obtain financing on a home like this? The house is listed at 129K, and I can't believe anyone but an investor or home owner would have that much cash. Will Freddie provide them financing on a fixer?