By Lisa A. Tyler
National Escrow Administrator
As everyone in our industry knows, there are many moving parts in order to close a real estate transaction. But most people do not know all the work that is involved when a fraud or forgery is discovered in a transaction. This is a true story about some of the work that was done to unwind a transaction.
It started off with a call from a bank that was escalated to Lisa Tyler, National Escrow Administrator. Find out what led the bank to believe the funds were credited to a fraudster's account in "I cannot make this stuff up!"
There are certain requirements the settlement agent works on to clear the items listed on the requirements page of the title report: Loan payoffs, homeowner's associations, assessments, etc. Other requirements, however, such as bankruptcies, divorces, probate proceedings and other clouds on the title, are the responsibility of the principals to resolve. The principals must also take proper steps to remove any disapproved exceptions.
The settlement agent, however, should coordinate with the principals to make sure that what they are doing will not cause a defect or cloud upon the title to the property, complicate or delay the closing and is acceptable for title insurance purposes. Read "ANGELO" to discover how a cloud on title becomes an expensive lien to clear.
To wrap up the series on the value of title insurance, we end with a story about a single mother who was able to keep her home after a property tax increase. Read "UNEXPECTED tax lien" to realize the true value of obtaining a title insurance policy.