Is it a Federal Law that a lender hold sellers check for 5 days after the closing on the sale of a home?

Question

This lender made a mistake on the closing papers. New documents needed to be signed and I was told that I was going to have to wait another 5 days for my check. I am now going on 10 days. I can't believe this is a federal law. Oh, the change amounted to changes on 2 pages (changing February to January) but they said all the documents had to be redone. So their mistake has cost me money (but I bet they are making interest money on mine) HELP!

Answer 1

Don,t let them do that to you and don,t pay more money to them

Answer 2

you answered your own question when you stated the documents needed to be redrawn. the changes you are speaking of in most cases are small in nature. the months just like the dates of closing and rescission are critical. they must be redone as this is a larger scale issue with the banking industry. it should have only taken a couple extra days to resolve the errors and resign. i would call the title company and inquire that the corrected paperwork was issued, and the buyer initialed and signed them. there are some errors on certain pages that would require you to resign. i would say it was not in the sales package but in the mortgage papers. the title company cuts the check you won't get it from the lender directly. call them, and don't be shy. they will tell you why the hold up. after signings sometime there is an additional hold as the buyer and title office need to provide more proof of something, and it can be silly small stuff, it has to be provided all the same. hope it helps.

Answer 3

We received our check the same day the sale closed, and it was from an out of state buyer so the $$$$$ was wired to to the title company which paid us our money. The title company paid out the money to all the parties involved (us, the sellers and the mortgage companies involved). I remember when we refinanced our house, there was a change to one of the pages but we signed and faxed the page that had to be changed and the turn around was less than 24 hours. Sounds as if they're screwing with you.

Answer 4

It sounds like the closing is not final. This is their loophole for holding your money. Of course they are making money on your money.

There are other parties involved, get them involved and tell them you are pulling out of the deal...they will be on their backs, too, to get this resolved. Pretty sloppy work for your lender.

Answer 5

no I dont think they can, when you are buying something from someone, they can charge you like $100 per diem charge...and I dont think this is Law...it may be the Lenders policy but I have never heard of it.