Attleboro Abstract

To whom it may concern- We have received a complaint for the above. For *** – ***, Philadelphia, PA *** Complaint – Billing or Collection Issues Customers Statement brief description – Customer states that they went to close on a home and was told about judgments and escrow at the last minute. That they were not told of the liens. Stated that they expected Attleboro to hunt down the satisfactions. That the customer found a couple satisfactions and sent them and got a release of partial of the escrow. After that he says that 1 of 2 satisfactions were accepted, and after recording another portion of the escrow would be released. Says that he reached out to Attleboro several times to inquire about the release of money. Complaint Background – Real Estate Purchase Date – 12/19/2019 Talked to Company 01/28/2020 Disputed Amount $4566.00 Desired outcome/Settlement: To receive the remaining escorw, and interest on the original amount. Response to Complaint – Title was ordered for the purchase on 12/10/2019 as a rush request for 3 properties. Our office ordered all 3 searches from a search vendor and tax certifications etc that are ***d for settlement. We requested the agreement of sale again on 12/18/2019 which was requested beforehand verbally over the phone. On 12/18/2019 search was returned and judgments were listed on it. We typed and sent the title commitment that listed the judgments to complainant on 12/18/2019 and asked for him to advise of the judgments and the 2 mortgages that were showing open. The loan on the property was a hard money loan that did not *** the 3 day disclosure rule on disclosing fees. The client was informed that since we had not received a response to the question for the judgments and mortgages that we needed to hold money in escrow in order to keep his intended closing date. The complainant complied and signed an Escrow letter with the terms of the escrow listed, and acknowledged that he was willing to hold items in escrow until the satisfactions were produced to clear them. On January 28, 2020 our office received a phone call from the complainant asking for a status update to the escrow held. He was then asked to please send his questions in writing to the email so that when the closer who conducted his closing returned from her vacation that she may get it and look into his concerns. His email was responded to on 01/30/2020 stating that the closer would look into and see how we could help him get the satisfactions that were ***d to clear the judgments and release the escrow. On March 4, 2020 a copy of some of the satisfactions were found by the complainant. Three of the Satisfactions were signed and dated January 27, 2020 – allowing us to release that escrow (it would not have shown the satisfaction on our search which was conducted a full month before that ***d the escrow). One satisfaction was found dated March 4, 2016 (our searcher must have missed it, but if a response was given to our initial request of advising on judgments, we could have had the searcher check again before settlement). On March 5th a partial escrow release was signed by the complainant, his escrow was released by Fedex on March 6th after his signed release was received. On March 5th to help facilitate the receipt of the releases, we ordered two title curative searches at the cost of $250 each, that are to help find mortgage satisfactions that the complainant was unable to obtain. On March 10th a copy of another 2 satisfactions for judgments were produced by the complainant – these satisfactions were dated for March 10th, 2020 (also after our search was conducted so it would not have shown up for closing forcing us to hold that in escrow). On March 12th a second escrow release was prepared and sent to be signed (also stating that partial of the escrow was being released and the other part was still being held). Released by Fedex on March 13th after signed release was received. On March 20th we received a copy of one of the other judgments was received, and needed recording. We are still waiting for that to be recorded with the City of Philadelphia – monies cannot be released until the actual document is recorded as it could get rejected by the county and not be satisfied. On March 24th there is an email from the complainant with no reply to him, as we are still waiting on the information for the last of the liens to be able to release them. There is a second follow up email on April 13th, that we have not responded yet to either. The Philadelphia Judgment system, is backlogged currently with the current events of state wide shut down, which is possible in the delay of the information being recorded and returned to us. This started around March 20th for the court houses. The release tracking has not been returned for the 2 mortgages that we requested it for as of this date either. The escrow agreement that he signed at settlement stated That the escrow would be held in the amount the 13,513.86 and would be released after the conditions of a paid in full letter or invoices for the following: 2 – Mortgages 1 with an assignment, and 6 judgments. The terms of the escrow letter need to be met in order for us to release the funds. The escrow releases that were signed state: 1. That in accordance with the escrow agreement that 4 judgments escrow would be released in the amount of $5021.00. The balance of 8492.86 remains in escrow until the proof of satisfaction or payment of the remaining 2 judgments and 2 mortgages is produced. 2. That in accordance with the escrow agreement that the remaining 2 judgments are released in the amount of $3926.86. The balance of 4566.00 remains in escrow until the proof of satisfaction or payment of the remaining 2 mortgages is produced. The satisfaction is being followed up on to see why it has not been recorded yet in the recorder of deeds office. (Our office was put on a work from home order per the governor’s rule, so I will need to go to the office to pull recording records to check the status). Our office is following the Escrow agreement, and Escrow releases that the complainant signed. It was also explained to the complainant that these items may take a long time to clean up, as with our experience with Philadelphia has been that they are slow to record satisfactions. The complainant signed the form without refusal or notice that he was unhappy with such. Our search was performed correctly, the satisfactions that were filed, were filed after closing – with no proof provided before closing that they were in process of being satisfied. In order to close the escrow needed to be held until the items were cleared, so that if funds were due for clearing them that they were available. As for the 2 mortgages that are still open and *** satisfactions, as stated previously we had to order a “Title Curvative” for each from *** (which is a company that specifically handles this) the cost of that is $250.00 per item, this is the only way at this time to try to obtain the satisfactions as the mortgage holders are no longer in business and/or may have been assumed by other companies over the years, it has happened that these companies sent the original satisfactions to the borrower’s and relied on them to file the appropriate paperwork with the county recorder, had this been done when these loans were paid off, we wouldn’t have had to hold money in escrow or if the borrower could have provided proof that they were paid the same would apply. We are following title insurance guidelines to make sure the liens are removed are clear title is provided to the lender (so they can be in first lien position) and the owner. *** stated in phone call that the property has since been sold and therefore we should release the money without the satisfaction, we explained to him that it doesn’t work that way, if we don’t clear the liens they will remain a cloud on title and could cause future legal issues.