Good afternoon!

We had a customer that filed for bankruptcy as they were trying to sell their home. They incurred legal fees that we added to their loan. Eventually the house did sell and the customer paid off the loan. However, now we have a bill from the attorney that shows the actual total owed is $500 more than what they verbally told us. The customer had $600 left in escrow that we need to give back. Are we allowed to pay that $500 still owed to the attorney from the escrow balance? Or do we have to give the customer the money, then ask them for the balance? (All attorney fees were incurred by the bank as we attempted to foreclose on the property only to have the customer file for bankruptcy and then sell the property semi-quickly.)

Thank you!
Monica

All attorney fees were incurred by the bank as we attempted to foreclose on the property.

Sounds like bank error, customer collects $500. - just like in monopoly.

It is not their fault that you gave them a payoff and did not include all of your fees. If the attorney misquoted you, then I would be hesitant to pay them. Or if you do, just make sure you never use them again.

Darn. I thought that was the case. I was just hoping it wasn't. Bummer.

Thank you for confirming.