Home Buying in 92802>Question Details

Julia, Home Buyer in 92802

mortgage cancellation

Asked by Julia, 92802 Mon Sep 20, 2010

I have waited to get a short-sale-condo approval letter from seller's banks for almost an year now, but I reached the point where I think it's not worth waiting anymore. so I decided to cancel all the process including home mortgage. when I talked to my broker, she said I should pay for third party fees to exit the process.

Those fees are; Appraisal, credit report, VVOE, doc draw fee (power of attorney fee?)-my husband was out of town), HOA certification.

I did not get any GFE to begin with, and I never informed that I would be charged on these fees on cancellation of mortgage at the beginning. And I've got a not- final- HUD-1 recently.

I read some articles that mortgage company asks for appraisal fee and credit report fee. But am I responsible for the rest of them? like VVOE, or power of attorney doc draw fees? is this normal?

Help the community by answering this question:


Hi Julia,

As Thom said.....it depends on what you've agreed to pay. First, I can't see why you would have an appraisal fee since it makes no sense to do an appraisal unless you have short sale approval. The value of a home can vary widely over time and certainly an appraisal done a year ago is no longer valid.

If you've opened escrow, then you can see clearly on the escrow instructions what you've agreed to pay. these fees are normally incurred after you have approval.

If your agent has a Broker....speak to them and see what you can work out.

1 vote Thank Flag Link Sun Sep 26, 2010
Julia, I think your agent is saying that to keep you in the process. I find it hard to believe that escrow has been opened if you do not have short sale approval. Call your agents broker of record or manager and talk with them. If you need help, I know a friend who is a Real Estate Attorney in Orange, CA and will offer you a free consultation.

All the best!

Ryan Smith
0 votes Thank Flag Link Sat Nov 6, 2010
I agree with Karen and Thom - check to see if there was an escrow opened, and inquire as to why an appraisal was ordered on a short sale.
0 votes Thank Flag Link Thu Sep 30, 2010
Julia -

Unless you have agreed in advance - in writing - to pay these fees, you should not pay anything.

Best of luck,

Thom Colby
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END Transactions in our Brokerage. There is NO benefit to the Seller or Buyer and only benefits the Agent. Also, NEVER use your RE Agent / Broker as your Lender or vice versa. Also, be careful when using Real Estate Broker-owned Escrow and Title Companies - they can be loads of trouble.
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0 votes Thank Flag Link Sun Sep 26, 2010
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