Uptown Not Immune To Horrendous Closing Costs
From experience, I can say closing costs can take the dream out of home ownership. Cheryl and I actually had an attorney who warned us about the vast majority we would have to pay when buying our Harlem pad, but it still really hurt. (At one point, and I am not making this up, I asked the bank rep "So basically, you're going to stick a vacuum hose in my ass and suck my money out?" He replied "Yes.")
We can't imagine what it would be like to be blind-sided by closing costs, but from reading comments on UPTOWNflavor from those who purchased at The Langston, we get the basic idea: "End of the day closing cots were $2500 higher than the estimates in the offering plan + bank. Oh and then there was the 500 moving deposit, they forgot to mention that this the, I dunno, 6 months I've been dealing with this!"
It's not just closings at The Langston that have irked people. Transatlantic Zeppelin describes his ordeal when closing at a different development, where the seller's attorney was "the bitchiest woman I've met since I was touring the former Soviet Union."
The last character in all this was a title insurance woman, who was at least semi-professional and had her stuff mostly in order, though she turned up 15 minutes late. The shocking thing is that I'm expected to tip her $50 to $75, which is perhaps the most absurd tip request I've heard since I was in India six years ago. Here I'm paying $8600 to the title company (Judicial Title), who pays out less than 1% of premiums in claims, and I'm supposed to tip their rep? Get friggin' bent. I tip taxi drivers, hair dressers, doormen, porters, waiters, barmaids, cocktail servers, bouncers, maitre d's, superintendents, and baristas, all of whom have reasonably hard customer service jobs. Still, I don't tip the shoe salesman at Bergdorf who gets a nice commission off my Ferragamos, and I don't tip people to whom I pay their firm $8600 and only hire them because I have to. What ever happened to just doing your job?
Cheryl and I do have this advice for anyone who is going thru or has recently gone thru a closing: if the sponsor's attorney is Andrew S. Hodes of 80 Cuttermill Road in Great Neck, check to make sure you get your full interest back on any money you put down to hold the place. Mr. Hodes mistakenly moved the decimal when calculating interest for people who bought in our building, and gave everyone in our development chump change on thier money, until a member of the board pointed out it should have been hundreds of dollars back for each purchaser. Oops. Check to make sure he does not make the same clerical error in your case.
Comments
I might try reporting the tip request. I have never heard of such a thing ... well, here in CA at least, and they say were strange.
As to the rest of your complaint. I have little sympathy ... It is just the cost of getting a house. You make the choice to pay it ... No one tells ya ya have to buy ... free yourself from the idea that you are a victim. You made a choice to purchase, this is one of the cost, now move on.
Posted by: TY | July 20, 2007 08:55 PM
OH TY, that is just ridiculous. No one is saying closing costs are unreasonable, everyone has to pay them. This article is about the money they EXTORT from you because they have you over the emotional barrel. I walked out of my closing because of a situation similar to the one outlined in the article. The bank attorney came after us, literally running down the hall - proving (on a small scale) that these fees are just shake downs and not legitimate.
Posted by: Anonymous | July 20, 2007 11:21 PM
OH TY, that is just ridiculous. No one is saying closing costs are unreasonable, everyone has to pay them. This article is about the money they EXTORT from you because they have you over the emotional barrel. I walked out of my closing because of a situation similar to the one outlined in the article. The bank attorney came after us, literally running down the hall - proving (on a small scale) that these fees are just shake downs and not legitimate.
Posted by: Anonymous | July 20, 2007 11:22 PM
Tipping is customary. Your ignorance of the full range of closing costs merely reveals your naivetee. Grow up.
Posted by: Anonymous | July 21, 2007 08:27 AM
$75 for the tip for the title person??? Mine was $200. This was the # my lawyer said it would be. He said bring a blank check and dont make it out because often they send a different person. Also she was 15 minutes late but got it done. So she made $200 from each side and she does 4 a day. Not bad!
Posted by: mediaguy74![[TypeKey Profile Page]](http://www.harlemfur.com/nav-commenters.gif)
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July 21, 2007 10:04 AM
I closed just a couple of days ago on my south Harlem condo and we never heard of such a thing. Sounds pretty shady to me.
Posted by: Anonymous | July 22, 2007 02:10 AM
There are so many variables that affect the final closing costs. It could change if you close in the beginning of the month or at the end of the month. It could change when at the time of closing, RE Taxes may have been paid by the seller. Your short term interest on your loan changes depending on which day you close in the month. These may appear as higher closing costs but are items you would have paid regardless. Its all about timing when you close.
Though your closing costs appear $2500 higher than the estimates, how do you know your estimates wasn't quoted $2500 lower?
Most of your gripes are typical of those who don't understand the process and made even worse by the fact you hired an attorney that may not have fully explained everything to you.
Tipping is customary on all NYS closings. You would know that if this wasn't your first closing. And if you purchased real estate before, then tipping is a non issue.
Posted by: Anonymous | July 22, 2007 10:43 PM
Anon 11:22 - you're compeltely off. Unless you're from an entirely different part of the country where it is standard. In NYC, tipping is not customary. From the arrogance of your post I presume you're on the acceptance end of such a shake down.
Posted by: A NYC RE lawyer | July 22, 2007 10:47 PM
Maybe the IRS should be alerted to this ridiculous tipping scam. Many service people have at least a portion of their tips reported.
Posted by: anonymous | July 23, 2007 11:01 AM
Maybe the IRS should be alerted to this ridiculous tipping scam. Many service people have at least a portion of their tips reported.
Posted by: anonymous | July 23, 2007 11:02 AM