Client of mine (I'm his investment manager) is selling his home this week. Was notified late last week that servicing was being transferred to a new group. New services says they can't process a payoff statement for 13 days as loan is still being "boarded over". Title co is going to estimate the payoff and hold funds in escrow. I'm guessing he'll get dinged for his regularly scheduled mortgage payment in the interim

How common is this and is it usually pretty easy to get everything straightened out, excess payment refunded, etc...?

He will not need to make a payment until the last day of the month to avoid a credit ding. Maybe a late fee though. Make the June payment. Avoid the stress. If the title company hold the money and only sends when they get the payoff they will refund so should not be a problem.

Your payment is for the previous earned interest for the lender.the one issue is if he makes a payment and not recorded and deducted from the payment he will have work with the new servicer. That could be a pain but better then a ding to credit

Had to check the language but it was what I figured.

Federal Law. Under 15 U.S.C. 1639g, "A creditor or servicer of a home loan shall send an accurate payoff balance within a reasonable time, but in no case more than 7 business days, after the receipt of a written request for such balance from or on behalf of the borrower." The aggrieved borrower under 15 U.S.C. 1639g can get damages under 15 U.S.C. 1640(a)(1)(3), but not (a)(4). So, actual damages plus statutory damages in the range, and attorney's fees and court costs, but not "an amount equal to the sum of all finance charges and fees paid by the consumer."

Off hand the only damages would be an increased per diem interest accrued to the loan payoff. Sounds like 6-8 days. Not a lot of money but depending on loan size could be a nice dinner

I was more figuring he could site law to get them to get it to him in 7 days or less.

It wouldn't hurt but there is only so much they can do until it's gets processed into the system. They probably working on hundreds if not thousands of loans.

Very large loan so it's a decent chunk of change. Sounds like he's just got to wait it out though!

Thanks