Hey!

Okay, an REO is closing. The seller (a big bank) was represented by a well-known "servicer" who contracted with us to list/sell their client's property. I'm not mentioning any names here...

The seller agreed to pay for a portion of inspection costs with the buyer picking up the balance. Good so far.

HUD1 statement comes in and I'm being charged with the seller's inspection cost. I'm told that the seller (not the company I contracted with to list/sell the property) should reimburse me BECAUSE the seller won't permit this inspection cost to appear on the HUD1.

So, I say "no way". Not a party to the contract. No agreement with the actual seller. No agreement with the seller's rep to pay seller's escrow expenses. No real way for me to get reimbursed. I tell title to obey the contract terms.

Anyone else had this happen during COE?

never, you did the right thing.

Get these things a fair amount. I just battled with Fannie Mae and won. Closing was delayed for a couple weeks. Eventually they agreed to everypoint buyer's side raised. Stand your ground.

We have to pay seller inspection costs up-front so often, and then get reimbursed later. FNMA being the worst they wont let anything on the HUD. Did the AM approve the amounts charged outside of the HUD?

What goes on or does not go on the HUD isn't my problem or responsibility. If the seller doesn't want a charge to appear on the HUD, they shouldn't agree to pay for it in the contract.

This is a state-mandated seller-pay inspection cert and one that agents aren't allowed to pay for because of possible charges of influence. If the certification is not obtained, the property cannot be sold. It's that critical. If the seller had told me I had to pay for this type of certification as an up front advance for them, I wouldn't have done it. There was no way of having this certification outside the contract. It's in a state-mandated addendum to the contract. It also was written into the bank's addendum.

good move. the escrow company has a legal duty to carry out the terms of the contract as it stands. the inspection fee had nothing to do with you.