Our closing attorney didn’t payoff the FHA loan as required by Payoff Statement.

Additional Information:

The closing attorney for the sale of my home in Wellesley 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 is 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 could file a complaint against the attorney in small claims court (I assume your damages are less than the $7,000 limit for small claims cases).   If the payoff statement made it clear that the funds had to be certified,  you likely have a viable claim against the closing attorney.  Alternatively,  you could hire an attorney on an hourly basis to make a demand of the closing attorney’s malpractice insurer. 

Attorney Alan Fanger is a Massachusetts real estate litigation lawyer and professional malpractice attorney. He serves the entire Greater Boston and Boston metrowest region including Norfolk County, Suffolk County, Middlesex County and the communities of Arlington, Boston, Braintree, Brookline, Cambridge, Canton, Concord, Dedham, Dover, Framingham, Lexington, Milton, Natick, Needham, Newton, Norwood, Quincy, Sherborn, Sudbury, Waltham, Wayland, Wellesley, and Weston, Massachusetts.

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