Title Company Not Settling

**REbuyersgroup** · 07-19-2008, 10:13 AM

What do you do when a title company records a Deed in the new buyers name, collects the funds from the lender, and never pays off any of the settlement liens and fees.

Unfortunately the buyers and Title are in CA, Seller in FL.

Here are the basics.
Title company received all seller documents, including estoppels from lienholders and executed warranty deed.

Title company from what I am told received all funds from the lender to close the files.

Title company recorded the deeds for the buyers last week, but has not settled the files to the seller. Whenever we ask for funds, we get more excuses and requests for additional paperwork already provided.

It appears the title company is stalling, but not sure why. Title company is making up excuses they do not have clear title, yet all lien holders have provided estoppels and seller says the title company has everything.

The deeds were recorded for over 1 week now and no sign of anyone getting any money.

Total value of the property about $8 million.

**jamesww** · 07-19-2008, 01:31 PM

Is this a small independent title company? Because it sounds to me like you have a case where the firm is hurting as far as cash flow and is on the brink of going under.

If this is not the case then I have no idea what is going on with the title company. They should not have recorded the deed until all parties where paid up.

This is the stragest situation I have ever heard of. Threaten to report them to your states real estate commision and the BBB. See if this makes them act or at least explain themselves. Wild!

**Greg** · 07-20-2008, 04:08 AM

I hope the seller has a good real estate lawyer working on this by now. I smell a scam brewing.

**REbuyersgroup** · 07-20-2008, 08:46 AM

If I were a betting man, I would say the ponzi scheme is headed for a huge fall.
I agree with JamesWW, it looks like the title company is floating the books with other sales until more closings come in to pay off previous ones. Since this was a large transaction, it appears the title company is behind.

They come up with all kinds of excuses why they have not funded, and say that they do not have clear title from their underwriter, and need to verify existing lien releases have been recorded. The liens have been recorded and available for public view.

The seller actually has about $500,000 in deposits, the Doc stamps have been paid to record the deeds.

Here is what I think will happen:
Title company will have enough money to pay the #1 lienholder on the property, and then explode, leaving everyone else holding the bag.