Is it acceptable (probably not great business) for a client's HELOC closing costs to increase by about $300 after signing the closing docs and having them notarized and sent them back. They are now asking her to sign closing docs agreeing to the increase in costs ... and are using the "error and omissions/compliance agreement" to counter her argument.

Thoughts?

Ever heard of "bait and switch"?? I would look to see who's fault this was. If it wasn't the customers, I wouldn't be going to them for the money. Look to your closing instructions (as I take this was closed outside of the bank). If the closing agent messed-up, your closing agreement should make them liable. If the bank messed up - chalk it up to an operations loss and review your control proceedures.

RANT WARNING

By the way, I love those errors and omission statements that I have to sign. I would really like to see one of those enforced in a court of law when it came to a sitation like this. Talk about a reason to invoke a delayed right of rescission.

What ever happened to the sign an agreement and be bound by what you sign? The customer isn't allowed such a luxury

My response would be "see you in court." And I think I would win. You cannot use the errors and omissions agreement to change the cost of the loan that way. Randy's comments are well taken.