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In this case this scenario involves both our Lender, XXXX XXXX which we filed a complaint about separately and this complaint involves the other party, the closing agent on our mortgage Lawyers Title of Cincinnati Inc.
The lender failed to make a good faith disclosure of the real estate taxes which would be part of our financial obligations in purchasing the property and repaying the loan. Properly create a new escrow account by failing to estimate disbursement amounts using reasonable judgment based on information reasonably available or known to it. The amount of real estate taxes which we, as purchasers and borrowers, would be obligated to pay upon closing was a readily known amount. The tax could have been easily determined at the time of the initial loan disclosure and certainly by the time of closing/settlement by a simple check of the public record by the settlement agent or the lender. The amount is determined by multiplying the sale price of the home ( which was known by Lender ) by the applicable tax rate, which is public record. Under Kentucky law and based upon information readily available in the public records of XXXX County, Kentucky, the real estate taxes which should have been disclosed to us totaled {$8500.00}, but the settlement agent and the lender reported the taxes as only {$4100.00}. They simply stated the taxes paid by the PRIOR owner, which under Kentucky tax law is not a justifiable, reasonable, or good faith statement of the taxes which we would be paying or in compliance with federal regulations [ Regulation X 1024.17 ( 7 ) and Regulation Z 1026.39 ( g ) ( 3 ) ] The Lender and the settlement agents negligence or failure to comply with federal regulations resulted in a drastic shortage in the escrow account and has caused us a great deal of financial hardship. Had we been informed by the initial disclosure of what the taxes would be and therefore the escrow amount, we could have shopped around more and perhaps found a lender with a lower rate or lower closing costs.
The closing agent ( Lawyers Title of Cincinnati Inc. ) failed to accurately disclose the taxes that you would be paying and which would be used to calculate your escrow account
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