Posted by kello on August 13, 2003 at 14:36:38:
maybe atleast the BBB. Isn’t what they did a bit underhanded?
help…please - Posted by kello
Posted by kello on August 13, 2003 at 13:55:35:
I signed closing papers on my house yesterday, under the impression I would be paid today. That is what I was told by the title company. Now they say they don’t have 100% of the funds and it might be a few days to get them all. Is this common? The buyers were trying to get us to hold a check for 5K and we said no. We are then told a few days later by the title company that we going to close. So we did. What now? Isn’t that some kind of fraud, having you sign papers to sell your home then they don’t have the money after you sign? HELP!!!
Re: help…please - Posted by Chireen
Posted by Chireen on August 22, 2003 at 04:00:54:
Closing and funding are two different steps. Just because a property closes doesn’t mean it funds, or that it funds immediately. Sounds to me like the buyer was having trouble coming up with their money for closing, which delayed funding by several days.
I’ve had this happen from all sides. I’ve had closings where the seller actually had to come to closing with money and it took several extra days for him to come up with it. Buyers were furious.
The Title Company should have had better communication with you and let you know details about the funding situation. The reason for you to close (with or without the funding) is if YOU don’t close in accordance with your sales contract, you have defaulted on the sales contract and the Buyer can cancel and get their earnest money deposit back.
I’ve also had closings that didn’t fund for several days because the Title company wasn’t bright enough to fax the Lender all the documents on the prior to funding list. And then I’ve had one closing that closed and didn’t fund because of fraud on the Seller’s part and we had to go back in and undo the transfer of deed, etc.
It isn’t fraud to have you sign papers on your house and not have the money to fund. 90% of the closings that take place the Title Co. doesn’t yet have the funds from the Lender (or Seller or Buyer). And even if the Lender’s funds are there the Title Co. cannot gain access to those funds until all of the Lenders prior to funding conditions are met and they receive a funding # from the Lender.
And if the Buyer doesn’t bring in the funds they are supposed to bring in, the Title Co. can’t force them to. They are a “meadiator” (of sorts) only. All they can do is what they are supposed to do, which is get everyone to sign the documents they have been provided by the Attorneys and the Lenders, and collect and distribute money when all the money for the funding has been received, and provide Title Insurance.
If it helps, the Title Co. is typically regulated by a State Agency, you might be able to complain there. However, if you’ve already signed, closed, and have received your funds and deposited your funds in your account then you have accepted the terms of the closing and funding, even if it was delayed.
Also, if it helps, it’s been my experience that about 50% of closings (and fundings) don’t occur at their scheduled time, they are delayed anywhere from half a day to many days. Coordinating a closing is like trying to herd cats. And life is full of delays. If the end result is you got all your money, then it was a good closing.
Hope that helps.
Chireen
Re: help…please - Posted by Joe
Posted by Joe on August 13, 2003 at 14:04:58:
This sounds like the buyers worked out something on the side with the title company. When you sell your home, you should receive a certified check from the title company that day. If it’s closed and you don’t have a check yet, you may want to contact your attorney.
Re: help…please - Posted by kello
Posted by kello on August 13, 2003 at 14:28:57:
I’m sure they did, they do lots of business together. Anyway the title company just called and said they now have the funding, after we called the buyer and threatened to end the deal. Do we have any recourse anyway against the liar at the title company.