Financing in Tampa>Question Details

kobiecook, Home Buyer in Arlington, MA

How can I compel a mortgage person to pay a per diem if he agreed?

Asked by kobiecook, Arlington, MA Wed Dec 19, 2012

If a Mortgage person agreed to pay a per diem amount while waiting to close but it took longer because he dropped the ball, how can I ensure he will provide a check for us to give the sellers at closing

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Kobiecook, unless this agreement was in writing, slim to none. It has to be submitted to the closing agent and placed on the HUD. The HUD has to be approved by the lender to close.

Proving poor performance is challenging. There may be other extenuating circumstances that caused the delay and not the mortgage broker. Typically, the lender's underwriting and processing procedures move at a specific pace. If you lost a lock due to any delays, you can ask for an extension.

Best regards,

Lynn Brock
Brock Realty Inc.

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0 votes Thank Flag Link Sat Jan 5, 2013
Oh and your mortgage person can give a credit on your closing statement... that's the easiest way to handle this. If your lender refuses, you could mention that can close the mortage in 10 days and you may even end up getting a better interest rate and lower fees--even after deducting the Per Diem expense!
0 votes Thank Flag Link Wed Dec 19, 2012
Ask your Realtor to ensure that the per diem amount is on your Settlement Statement (HUD-1). It may have to show POC (Paid Outside of Closing). Tell your Mortgage person to bring their checkbook!
0 votes Thank Flag Link Wed Dec 19, 2012
I recommend that your Realtor, the buyer's Mortgage broker, and the Title/Closing agent all work with you and your Buyer to resolve your question.
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0 votes Thank Flag Link Wed Dec 19, 2012
You can try refusing to close until he does. I am not sure how effective that will be, after all you have a good faith deposit, etc, at stake here, but during a refinance I did that and it worked. I know it's apples and oranges because of the deposit but I would try talking to that person's superior and letting them know that I will be broadcasting my dissatisfaction far and wide, etc. May or may not work but it's certainly worth a try.

If that doesn't work, definitely seek legal advice and, perhaps, call your State Department of Banking to see if they have any suggestions.
0 votes Thank Flag Link Wed Dec 19, 2012
Did you have the lender put it in writing? If not you will have to hope they are willing to do the "right thing" and honor your agreement. As without it in writing there is really nothing you can do. It is your word against theirs... One thing I have learned in this business, is make sure you get everything in writing.

Good Luck!
0 votes Thank Flag Link Wed Dec 19, 2012
Did you get this agreement in writing? If you did, then you should have legal recourse if he/she doesn't pay for the fees incurred...

I'm guessing however that this is what happened: You mentioned the fact that you would be charged a per diem penalty if you didn't close on time to your mortgage rep, per your contract. He/she probably re-assured you by saying "Don't worry - it's gonna close.........if it doesn't, I'll pay the fees". Unfortunately, I have heard this kind of talk time and time again from fast talking mortgage brokers. It's sometimes their way of keeping people pacified so they don't "jump ship" before they can push the loan through underwriting.

I would speak to an attorney and explain the situation. Like anything, if you didn't get this agreement in writing - it's just two people "talking" to each other...
0 votes Thank Flag Link Wed Dec 19, 2012
Unless it's in writing it will be difficult to enforce. Instead of writing a check to you at or after closing see if he's able to reduce his origination fee by that amount.
0 votes Thank Flag Link Wed Dec 19, 2012
Do you have the agreement in writing?
Now, you can pay an attorney to get the agreement enforced or your attorney can show you the escape clause.
0 votes Thank Flag Link Wed Dec 19, 2012
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