Scams Polar CMC Inc and Escrow Stream?

your_money__scam_alert.Par.93724.Image.0.0.1Overnight, it seems like California escrow companies are trying to introduce a new service and pass on the huge costs to their buyers.  On the last two transactions I have done they have added in fees for Polar CMC Inc ($195) and Escrow Stream ($60).

They’re adding to their escrow instructions:

Buyer and Seller agree to release information and expedite the handling of documentation on REO lender owned real property for which Buyer agrees to pay $195.00 to Polar CMC, Inc. and $60 to Escrow Stream, LLC for their services.

It sounds like escrow companies are adding another pass through fee that helps them take advantage of the consumer.

They also added another page to the escrow package.

Due to this transaction being a bank owned property, there are outside investors that have to have certain reporting requirements met.

In the event these transactions do not close on time, buyers and their agents are penalized.  In order to help facilitate the timely close of these transactions and to ensure that the buyers and agents will not have excessive delays, which will cause them to be penalized, a 3rd party closing management company, Polar CMC Inc. has been contracted for these REO files.

Polar CMC Inc. provides support to close these transactions through Escrow Stream, which is closing/task management software where information is input and updated throughout the day and then generates reports which are used to allow the banks’ investors access to make decisions on credits to the buyer, approval on repairs, extensions of closing date and many other issues that may benefit the buyer.  Due to this benefit to the buyer, Polar CMC Inc. charges $195.00 per file and Escrow Stream charges $60 per file, which will be charged to the buyer at the close of escrow.

I love how they sign me up and charge me for things that “help me.”

Now not only do escrow companies have a minimum fee of way higher then my average escrow cost, but they are adding a bunch of additional junk fees.

So far I have refused to pay on both escrows and received credits for these fees.  I really hope this doesn’t take off.  But I would imagine many consumers just thing this is standard practice and pay these.

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4 Responses to “ Scams Polar CMC Inc and Escrow Stream? ”

  1. Matt says:

    As if the banks junk fees weren’t enough… now the closing attorneys and title companys are getting into the act. My favorite is the discharge tracking fee. What the heck is this?? I hand deliver every discharge from my private investors and they still want to charge me to “track” them….
    .-= Matt´s last blog ..Plumtree Rd – Finished and Staged =-.

  2. Mad says:

    Steve, I saw this on my escrow closing statement too. I called my agent and she had never heard of it before. What should I do?

  3. Donna says:

    I can see how you would feel like you had been charged fees that were unjustified. Unfortunately the process of escrow closing can be a complicated process and all does not run as smoothly or as timely as it should. The fees you claim were simply pass through fees or charges just to take advantage of the consumer are in reality charges paid to a service that protects the buyer from incurring what can amount to very costly per diem penalties. Polar CMC Inc provides their services to close contracts 5-10 days faster than on average and works with all parties involved; including escrow sellers, asset managers,real estate agents,closers and lenders to make sure there are no contract carry-overs and other unforseen delays that would end with the buyer paying the penalties. I understand your frustration with added fees, but in this case Polar CMC Inc is definitely on the buyers side.

  4. Steve says:

    Donna – I appreciate your desire to PROTECT ME for a profit. The problem is, I DID NOT hire your company, I don’t even know what your company does and I am being forced to pay your fees. You cordinate things with escrow, sellers, asset managers, and lenders.

    The real estate agent I used had never heard of your company, so obviously he didn’t get any value, I paid cash for the house so there was no lender.

    My guess is you provide some kind of reporting for asset managers/banks and have sold some banks because your service is “FREE” to them (because they charge me). Both times I have closed and charged this fee I have requested we not use you or pay for your service. If you really are helping me so much, wouldn’t I have the right to refuse the service since it’s apparently for my benefit and paid for by me.
    .-= Steve´s last blog ..Know your Competition – Real Estate Investing =-.

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