Title Company Procedures - Posted by Nota Bene
Posted by Nota Bene on March 31, 2006 at 15:27:11:
Is it normal for a title company to disclose the buyers closing instructions to the seller of a note? I should mention, that this is a full disclosure state.
I went through a long drawn out process of buying a note, using an institutional investors funds, who then immediately purchased the note from me. Essentially a simultaneous closing note flip.
The title company took my investors closing instructions which included their contact info., and sent them to the note seller.
Most of the reason I didn’t have the note seller simply sell the note to my investor, was to avoid disclosing my investor. I had the purchase contract in my name, etc.
And now, the title company has gone and nullified all the work I did by disclosing my investor. I could of saved myself 5 weeks of aggravation in dealing with this title company and note seller if I had simply put my investor in direct contact and sat back, let them deal with all the hassles and gotten paid the same.
Again, the primary reason I didn’t do that, was to keep my investor’s details confidential, which is what I thought one of the purposes of closing through escrow was. No?
Is this title company crazy? Or is this normal for a full disclosure state? If it’s not normal, do I have any recourse? Why should it be the note seller’s business who I’m getting my funds from?
Any professional opinions or advice?