The answers below are very complete...but I'm sad that your agent hasn't helped you with this. Shoot...you should have these questions answered by them.
I'm going to add my professional opinion again, as I did in your other post - your loan officer at Wells Fargo (or whomever Wells Fargo delegates such tasks to) should have picked up the telephone the minute the seller identified the title company.
I'm betting that title company was identified in the purchase contract you signed and your loan officer and his or her processor had all the information they needed at that point to refine your estimated closing costs. Yes, they appear to be within the law but what good was that for you?
When we get a contract we pick up the phone and call the title company - even when said company is picked by the seller. We get ALL the fees in about a 5 minute conversation with the Escrow Officer....even on CA transactions when we're sitting all the way up her in WA.
I'm going to save your post though, because this was a revelation. Apparently Wells Fargo follows the letter of the law while at the same time leaving their first time home buyer out in the cold with a $3,000 shortage on the day of closing.
All this is very maddening but I really don't think you have any recourse - at least given the scenario as you describe it. Neither the impound account items nor the seller chosen title company costs are required to be accurate under the new GFE laws. There should be a tolerance level but somebody (probably the banks) convinced the regulators that this was all too confusing for their poor loan officers and we needed to allow them to get this part wrong.
It was suggested you hire an attorney. The previous post said your unexpected costs were between $1,500 and $3,000 and I'd doubt you'd get any help for that amount.
Sign your docs, be happy with your new home, and put all this behind you. Just make sure you tell all your friends to use a mortgage professional like Gregorio instead of a big bank loan officer when they get their loans. The only way you can get back at the bank is to spread the word.
If you don't believe a loan officer is qualified to answer a question on what happens at closing, I feel very sorry for you. No one has answered anything that would even be close to practicing law without a license. If as an agent, you cannot answers a consumers questions about the very contract that you work with every day, I find that extremely sad. I am an expert at what I do or I would not do it. I know the GFE inside and out and am certainly qualified to answer any questions about it. If you are not, then no one is asking you to answer, but I certainly don't require any cautions from you should I chose to do so.
2) You are not necessarily agreeing wit the HUD because at this point it's still "estimated". Escrow can still make changes to the HUD before funding. What you will receive still says "Estimated".
3) You are expected to have your funds to close at signing.
4) You should not be charged a notary fee if you sign at escrow.
You may have to chalk this one up to working with a loan officer that has little knowledge of escrow. There really is no excuse for not getting the figures correct. Any loan officer that regularly closes transactions in California can estimate escrow fees within a 10% tolerance... more like 2 - 5% actually. sorry you had a bad experience.
A few things :
If you are buying an REO , good for you, all things being equal , you got a deal !
The main thing is the rate and the fees ( the note rate MUST be correct , the fees can be adjusted out in the next few days by contacting your Loan Officer, a rate change would take a doc redraw )
You pay on/from the recording date.
Notary fees @ 100 at Escrow & @ 120 mobile , so...you pay that in escrow.
Regards , your source for all Real Estate Financing,
If the notary is coming to your home make sure your loan officer or agent is there. there will be a pile of paperwork about 1 1/2 inch thick. You need to check to see that your interest rate is as promised in your loan lock sheet. That you have the correct loan amount, and that you are paying close ot what you thought you would be paying. Ioana I did not see your earlier posts, it sounds like you are paying as much as $3000 higher than you were originally quoated. To me that does seem to be a little bit more than off the mark. I do use a large bank for loans and have always found them to be quite close in their estimates; even Wells Fargo! I think you are the exception, rather than the rule. I believe you should sit down with your agent and their broker or manager and ask them to explain what happened. If your good faith is that far off, did it include all costs? Your agent should be able to explain it all to you. Or are you possibly paying some of the costs normally associated with the seller? If so that should have been in your contract.
I think you should send a letter to your agent's broker (e-mail) and tell them that you are closing but do not agree with the HUD. Your agent should have told you who was paying for what and given you and estimate of your closing costs. If they left something out, they should own up to it and do the right thing.
You may very well have a penalty for not closing on time, but closing does not mean you cannot sue for damages and over charges. Sounds like your overage is well within small claims limits; what did the attorney you spoke with say about that?
I am with Michael, I think you should enjoy youur home, but I would not ignore the $3000. Talk to the broker and see what they can do to help you.
Prudential CA Realty
The last part of my message was to go to the employing broker, if the agent won't/can't handle it adequately for you.
I now add that you would be much better off seeing a lawyer, than getting random, unknown licensees involved on your behalf.
Likewise for them, because answering your questions may very well cross the line into practicing law for the answering licensees, something they are neither qualified nor allowed to do.
See a lawyer and have HIM/HER contact your broker, and see if things improve.
You truly are going about this all wrong, to your own detriment, and to the detriment of the people trying to help you, in my personal opinion.
I am dropping off the conversation, but I think you need to get the broker or a lawyer involved, or both.
Good luck with this, and my apologies for you not receiving the support you feel you need from a fellow licensee.
Terry: you are right, I am still working with my agent and she is trying, but it's obvious at this poit that her interest is just to close it so she gets paid, so I am trying to find out as much as possible too.
She just emailed the lender saying that the new escrow and title charges were not disclosed by the seller when they chose the title company at any time. As per our purchase agreement on page 2 I am reading nowat Line C: Escrow and Title at (1): Escrow shall be Seller, Choice. Then on page 5 where it says 14: Time Periods; Removal of Contingencies, etc.....at :A. Seller has 7 days after acceptance....to deliver to buyer disclosures and information.....for which Seller is responsible under paragraphs 4, 6A, etc. And then Buyer may give Seller Notice to Perform (C.A.R. Form NSP) if not.
So we might have something here. It does not say I have only so many days to send a Notice to Perform. They had to disclose their chosen escrow and title fees and they did not....
Am I right or not?
You desperately need an agent to represent you!
I understood from an earlier message that you DO have an agent.
Well, if that agent is not counseling you adequately, you need to talk to his boss, the employing/managing BROKER.
It is absurd for you to be asking guidance in the first and largest transaction of your life from random strangers (licensed or not) who know little of your transaction
You are due guidance from your agent or the employing broker.
I think if you told him/her that you have been getting all of your guidance from posting questions to unknown licensees on Trulia, you might get the attention you deserve (and which is owed you by your agent).