Escrow Nightmare... Luckily I'm an Experience REALTOR(R)

By
Real Estate Broker/Owner with 1st Prime Realty CA BRE LIC 01456248

***********************************DISCLAIMER***************************************************** This information is for Educational Purposes Only.  The Scenario is True, However the name(s) being used are not of my Client(s).  Also we respect the Rights of any Institution Outsourcing their Call Center(s).

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I recently closed an Escrow that had many challenges.  It was an Inherited Property, and all Estate Planning Procedures were in-tack.  I was the Listing Agent on this Property.  I Price the Home at Market Value, and received Multiple Offers.  We selected one that was appealing to my Client.  As a Listing Agent, I always keep an Open Line of Communication with the Lender.  The Real Estate Agent was Representing their Client, as the Agent and Loan Specialist.  Our Loan Contingency Period  had arrive, and didn't receive a Full Lender Approval.  There were some outstanding items, which prevented this Home Buyer to move forward.

I Canceled this Escrow, now the Home is Active.  Multiple Offers came in, and I asked more Questions than usual in regards of the Loan Approval.  We have a Solid Home Buyer.  We opened Escrow.  Everything was going smoothly.  Here is were things get confusing.

The Lender my Client's deceased parent used in acquiring the Home is defunct.  All their Loans were obtained by another Loan Company.  In this transition, some of the Paperwork was not provided.  The most important item this Loan Company didn't receive, are the document regarding my Client being the Successor of their Parent(s) Estate.  Now we are approaching Closing, and there seems to be a delay.  The Escrow Company can't get the Payoff, due to the New Loan Company saying the Property is in Notice of Default.

My Question was, Notice of Default?  According to the Title Report, also the Tax Records there is no filing of a Notice of Default.  The Escrow Officer says it was sent to an Attorney's Office.  I ask for the Phone Number to the Attorney's Office.  After waiting, and put on Hold I had a Live Person on the Phone.  I ask was this an Attorney's Office, they replied No.  They gave me their Business name Located in Atlanta.  I asked the Representative where are they?  They told me the Country their in.  Also became rude when I asked to email them my Clients Documents.  My Client tried to call the Lender, and the "Attorney's" Office.  No luck, they became rude and quickly hung up the phone.  Both Companies are using a P.O Box or a Virtual Address to appear to have a U.S Office.

Fortunately I was able to tap into my Experience as a Short Sale Agent when the Market Crashed.  The Deal Closed, and the experience I gained will help me Educate others.  If you are in Escrow be sure your Lender is the same.  If they Sold your Account to another entity, be sure to have an Authorization to Communicate in place.  Include your Attorney's Information, REALTOR's information etc.

 

Thank You for Reading

 

Don Alexander REALTOR(R)

1st Prime Realty

619-581-4255

CA DRE LIC 01456248

www.1stPrimeRealty.com 

Posted by

Don Alexander REALTOR/Broker

1st Prime Realty

619-581-4255

D.R.E Lic.#01456248

Comments (5)

Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I always know that when I think I have seen everything, something else will come along to surprise me, haha.

Nov 03, 2019 06:29 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Don - experience matters.  So does knowledge.  And that combination of the two can be quite effective.  Congratulations on your recent sale.  

Nov 03, 2019 07:03 AM
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

Thank goodness you were experienced in handling the matter.  Congrats on the closing.

Dec 19, 2019 08:26 PM