moeronn

Has anyone in CA (re)financed a property with an impound account and then canceled that account after the loan funded?

I am supposed to close on a load in the next few days and they called me to tell me that there was a problem with the paperwork and I need to either setup an escrow/impound account or pay additional closing costs and resign the loan docs. Both of these options seem like BS to me. However, I heard it may be possible to setup the account now then cancel it later. I thought I read in my docs that this is allowed, but I don't have the docs in front of me to verify.

So, has anyone done this successfully?

To satisfy the Lawyers on AZ:
Note: I am not asking for legal advice and will not hold anyone liable for the statments made relating to this topic.

3.0_Bullet

i do not know if there are any restrictions. hmm, i think you should refer to your loan office to break it down for you. simple as that...

moeronn

This may be a moot point, as they told me they will go through with the loan as stated in the loan docs.

BigPimp

They are feeding you bullshit. In cali, there should be no cost for the waiver of escrow accounts. New law that took effect this year.

I presume this is a mortgage broker, if so, tell then to go fly a kite. You can always walk away from the deal and get all your money back.

moeronn

I know that they are required to pay you 2% interest on the escrow account, but had no idea they aren't allowed to charge to waive the escrow account. It seems tyipical that most places charge 0.25% to waive the escrow.

I just got notice that the loan funded, so that's all good.

The loan terms were actually really good, so it was hard to just walk away.
Cash-out refi
30 yr fixed
5.875%
no points
no fees

It's tough to beat that. The only reason there were no costs is because I had financed through them before.