Mortgages Made Simple with Rick Gundzik

Sunday, April 3, 2005
Garbage Fees - Part 2
Garbage fees are unnecessary fees charged by companies in a loan transaction. While Garbage fees typically are attributed to mortgage companies; Escrow, Title and Real Estate companies sometimes charge them too.

Escrow companies charge Loan-tie-in fees, audit fees, email document fees or document preparation fees. These fees are in addition to their escrow/settlement fee and are essentially garbage fees. I personally think printing a set of loan documents isn't labor intensive enough to warrant a fee.

Title companies are heavily regulated so you will seldom see anything out of the ordinary. They typically will charge a Title policy, endorsement, sub-escrow fee and/or wire fees. These are NOT garbage fees.

Real Estate companies sometimes charge Transaction coordinator or marketing fees. With the commission they receive, you should see no additional fees from your real estate company.

Keep in mind, buying a home is expensive so one or two fees may not be a big deal to your real estate agent. But if you're not careful, you could lose several hundred dollars in garbage fees.

If you see any of these fees on your estimated closing statement, contact your agent and tell him/her you would like them waived. If you are unsure, feel free to contact us.
posted by Pac Res @ 4:32 PM  
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