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.
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"
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.