Overnight, 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.