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re: Home Mortage Closing Costs: Bait & Switch, Is It Legal?
Posted on 2/25/15 at 8:23 am to LSU1018
Posted on 2/25/15 at 8:23 am to LSU1018
The attorney told me the "doc prep fee" was added due to the increased risk on the company since I declined the owners insurance. I responded by telling him that the premium/policy was mispriced because I should not be forced to pay for "supplemental insurance" in the name of a doc prep fee. Looks like they tacked on a fee because they lost out on some commission. This is the main reason I ask. It seems as though the fee was arbitrary and they charged me because they could.
2
Posted on 2/25/15 at 10:02 am to nhassl1
Easy - Should have told them up front that you didn't want title insurance.
Posted on 2/25/15 at 10:33 am to nhassl1
I'm going through the closing process, and here is how it was explained to me.
The work to be done is basically the same whether you buy lender only or whether you buy lender and owner. The additional cost for an owner policy is minimal - as there really isn't any additional work to be done.
The comment about "additional risk" does not make sense.
What I don't understand is why they don't just list the cost of the lender policy with all costs, and then put a very small cost on the owner policy - since in reality, that's what it is.
I don't think this is a bait and switch. Your GFE isn't a menu of items to choose from... it's a list of costs for a particular situation. Your situation changed.
The work to be done is basically the same whether you buy lender only or whether you buy lender and owner. The additional cost for an owner policy is minimal - as there really isn't any additional work to be done.
The comment about "additional risk" does not make sense.
What I don't understand is why they don't just list the cost of the lender policy with all costs, and then put a very small cost on the owner policy - since in reality, that's what it is.
I don't think this is a bait and switch. Your GFE isn't a menu of items to choose from... it's a list of costs for a particular situation. Your situation changed.
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