Wednesday, February 20, 2008

query by e-mail: title company stole the money and my debts aren't paid!

Hello Diane, I was so glad to find your blog!!!! Oh my goodness I am having some problems.I could use some advise.I thank you in advance for taking the time for all us real estate idiots.Ok here it is my Title company dissolved and never paid my closing settlements ever from the closing settlement(credit cards,medical bills and insurances)One was an insurance to cover my mortgage in case of injury or illness etc.It is now almost 2 yrs later and my credit is destroyed form this.The title companies owners are now in big trouble for embezzling closing settlements owed to third parties as I have described above.The medical bills i mentioned were negotiated prices that were supposed to be paid 2 years ago so now they are back to the old prices and everything is in collections.Mortgage company knew about this because when I went to refinance they denied me because the settlements had not been paid .Mean while my credit rating is in the toilet and in june when I tried to activate my insurance because I was attacked and was injured I was then informed by my mortgage company that the insurance included in the settlement payment was also never paid.Now I contacted the Title insurance company and they are not responding so well we both agree settlement was never paid but the long lasting effects of this will last along time if they do not cover the insurance issue.Hope I am not to confusing.Please any advice would help I am looking for an attorney but until then tick tock my credit rating drops to 396 AHHHHHHHHHHHH I don't even have any credit cards HELP Please thanks

To which I responded:

I can't give legal advice, T, so don't take this as that kind of advice. OK?
I suggest doing all communications with the big title company via certified mail.
You should also contact your state Attorney General. They normally have a consumer department to assist resolving problems with a business.
If you haven't already done so, contact the state insurance department and perhaps the state mortgage banking department.
The HUD-1 form you have should list the debts you paid. Contact the credit bureau and submit this information and request that they put a statement on your record.
You may also want to contact your local legal services office for assistance if you can't afford to hire an attorney. Good luck!

1 comment:

Anonymous said...

I’ll preface my comments by saying that they are based only on the available information that makes it appear that this person waited in the neighborhood of two years before pursuing this problem.

While I feel for this person's situation I can't help and think that there was a lack of personal responsibility here as well as a complete failure by the title agency/company. A title agency or company acting as the settlement agent is responsible for disbursing/distributing funds from a loan in exact accordance with the instructions from the lender. They also have a responsibility to properly maintain their escrow accounts and follow-up on outstanding checks to ensure they clear in a timely manner. That said though, with these debts being so important to the borrower why didn't he or she check in the weeks following the closing to ensure these debts were paid; had the payment of these debts been followed up on immediately he/she would have known within weeks that these debts had not been paid. Doing some follow-up seems to have been especially critically since the payoff amount of at least one of the debts was a negotiated amount that I’m sure had an expiration date. Another option could have been to insist that the creditor checks not relate to title (i.e. have no bearing on the title policy issued) be forwarded to him or her so they could personally send them to the creditors. Unfortunately in today's world no assumptions can be made and we must take responsibility to ensure tasks have been completed to our satisfaction.

All of that said, I agree with Ms. Cipa that this person should contact their state's Attorney General office and would add that it may also be worth while the contact their state's Department of Insurance who likely will also have a consumer complaint division. Good luck in getting your problem resolved.