Legal Questions & Answers

The Closing Attorney For The Sale Of Our Dedham Home Didn’t Payoff FHA Loan Properly.

Additional Information:

The closing attorney for the sale of my home in Dedham, MA was aware of the necessity to payoff my FHA loan at a certain time to avoid additional fees. The payoff was rejected by my lender because it wasn’t a “certified check, cashier’s check, or bank wire”, as required by the lender’s Payoff Statement. After being contacted by the lender, he then sent a certified check which was received after the deadline and I was charged additional interest and fees. He admitted to ignoring the lender’s requirements, but refuses to reimburse me because he was not responsible for the payoff of my loan. What can I do?


You may have a cause of action against the closing attorney since he assumed the responsibility regarding the payoff of the FHA loan, including timeliness of correct payment. Having assumed the responsibility for payment of the payoff, he is now liable for any late fees or penalties that have resulted from his negligence or oversight. You should make a formal demand upon him for reimbursement. If he fails to pay, you have a good cause of action against him and could seek multiple damages in court plus attorney fees and costs.

Dedham Closing Attorney Alan Segal provides legal representation for all real estate transactions and serves individuals and business in Dedham, MA and the surrounding Greater Boston region including: Newton, Needham, Westwood, Dover, Natick, Wellesley and Weston.