Home Buying in Sacramento>Question Details

amy.all4boyz, Home Buyer in 95661

How much can a creditor legally charge for an escrow demand fee? We are being charged $300.00 and feel like thats highway robbery . (Banks charge $60)

Asked by amy.all4boyz, 95661 Mon Dec 2, 2013

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That's a question I'd first ask my escrow officer as they most likely deal with what is the 'standard' request by a lienholder. I was thinking it was about $150. Then I might ask an attorney. (prepaid legal services comes to mind for this...) Based on your response back below, it sounds like they have you over a barrel. Maybe before paying them anything, it should have been clearly defined what your original payment was to be applied to.

If they have a judgment, most can collect the amount of the judgment and 10%/year of interest payment. They can't just charge anything they want but it may need to be settled in court. An escrow officer can only execute agreed directions from parties, they don't make legal decisions.

And your comment that maybe you shouldn't have paid old debt...if they received a judgment and placed a lien on your property, it would have needed to be paid sooner or later....that's just the way it works. But they can't just arbitrarily blackmail you for more than the judgment declares. Good luck.
0 votes Thank Flag Link Mon Dec 2, 2013
I hope someone answers your question clearly and definitively. I would be interested in the answer.
I hope Adrian is wrong about the idea it could be unlimited. Your question was clear enough to me that this is not the new lender demanding the fee, but an older existing lienholder. Am I right?

$300 sounds like just enough to be usurious without being quite enough to tempt you to spend the money on a lawyer to fight the baeiostaeiords. No its not a mis-spelling, just remove all the vowels except "a"
0 votes Thank Flag Link Mon Dec 2, 2013
lol..thanks, Yea we Are talking about an old judgement from a nasty nasty creditor to whom I mistakingly tried paying AFTER statue of Limitations in California and once he got that first payment he sued me. I paid him $2400 and they were abusive, threatening and changed my interest to suit them . My original judgement was 3159 and they just kept taking my money and increasing what I owed...so here I am 5 yrs later, after paying $2400 they want another 4900 to get this satisfied. They are adding 500 in fees...on top of 1400 of interest. Tried to do the right thing and got screwed! Dont pay OLD debts people...just Dont. :(
Flag Mon Dec 2, 2013
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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Hey Amy: Are you talking about a beneficiary demand -- a demand prepared by a lender and sent to escrow detailing all of the fees and charges the lender expects to receive in order to payoff the loan? I agree that $300 sounds like highway robbery. Maybe you could ask the Consumer Financial Protection Bureau about this?
0 votes Thank Flag Link Mon Dec 2, 2013
Hello Amy,

The escrow demand fee is not a standard fee that all lenders are required to charge the buyer. Some Mortgage Lenders add this fee and some do not. A lender would normally give you a Good Faith Estimate and you can review it in the beginning and question the fees prior to committing yourself with that lender.

John Lanting
eTernity Realty
http://www.JohnLantingHomes.com
(916) 798-3225
0 votes Thank Flag Link Mon Dec 2, 2013
i think they can charge whatever they charge; is this a hard or private money company? -adrian
0 votes Thank Flag Link Mon Dec 2, 2013
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