What are garbage fees?
According to Investopedia: "Garbage Fees are unnecessary fees tacked onto mortgage closing costs by lenders to pad the lender's profit.." After escrow closes, your real estate agent is delivered a copy of the final settlement (or closing) statement. I recently closed escrow on one of my listings and was provided with my client/seller’s copy of their statement. Their lender charged:
Statement fee: $30 (this is to tell them how much they owe)
Reconveyance fee: $54. (Cost of removing the lien from title)
Fax fee: $10
Termination fee: $500 – WOW!
In addition to the interest the bank earned, the initial upfront fees and points, the bank collected another $594 just to be paid off!
Posted by Phyllis Harb at 6/28/2010 4:28 AM 
Categories: A Seller's Perspective
Tags: los angeles real estate garbage fees
Categories: A Seller's Perspective
Tags: los angeles real estate garbage fees
Banks and lenders are going to be forced to tack on more and more fees that we are not used to now that the government is imposing all of these new regulations on them - I have no doubt that it will get much much worse.
At this point do we even know that these costs are "padding" lenders profits or simply the necessary steps to take them from the red to the black?
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From what I read the executives are getting bonuses.
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