Classic Settlements

September 12, 2014Dear [redacted] ***: We are in receipt of your letter of September 4, 2014, along with the attached complaint, and greatly appreciate the opportunity to respond to the allegations made thereinImmediately upon receipt of your letter, I pulled and reviewed our file for the real estate transaction in question, and discussed the circumstances surrounding the processing, closing and disbursement of the Settlement with the Processor and Closer who worked on this matterAfter gathering all of the information from the parties involved, I would like to address allegations of the complaint.First, please note that Classic Settlements is a well-established business, having conducted over 40,real estate closings since 1994, all over the State of Maryland and the District of Columbia, We understand the processes and procedures necessary to complete real estate settlements and the recording of documents related theretoLooking at this specific transaction, it appears that we gathered all of the necessary and relevant information required to transfer the property, including a title search, homeowners association details, as well as repeated communications with the buyers’ lender, among other thingsWe had everything we needed in order to close as scheduled on Monday, July 28, at 10am on the Eastern Shore - except that the buyer's lender was not ready at the appointed date and timeOur Closer reached out to the parties and agents the Friday afternoon before the scheduled closing, July 25, explaining that the lender's documentation was not finalized, and that it would be best to reschedule this for 3:30pm on Monday, July The delay in getting said documents was the sole responsibility of the lender and had absolutely nothing to do with ClassicIn fact, it was our forward-thinking in pushing the closing back a few hours that saved a morning of stress and anxiety, and instead resulted in, from our accounts, a very smooth settlement with no changes to the Settlement Statement nor other documentsIt should be noted, one of the real estate agents went so far as to compliment our Closer on doing such a nice jobThe Closer was not only on-time to the rescheduled appointment, she in fact arrived early – and fully prepared to do business,Regarding the claim that our document, specifically the wire instructions, was “inaccurate’ and had to be corrected, also appears to be untrueMy investigation into this issue found that the sellers, who were divorcing (which was not disclosed to Classic until our Closer arrived for settlement), asked us to divide up their proceeds per their instructions and send them out via wires – one to the husband, one to the wife, and one to the wife’s title company for her subsequent real estate transaction out of stateWhen one of the agent’s asked for a copy of our wire receipt to the title company, they saw reference to both of the sellers’ name on the receipt and must have thought we indicated to the title company it was for both sellers, not just the wifeThe fact is the wire was sent only on the wife’s behalf and was properly credited without any problem whatsoeverThe reference to both sellers on the wire receipt was simply for memo purposes indicating to us the sellers of our transactionAgain, the wire was processed by the receiving bank as contemplated without delay or confusionAs to the incorrect amount of state recordation taxes being collected, we are extremely sorry this occurredDoing business in every county in the State of Maryland, the City of [redacted] and the District of Columbia, we rely on outside service providers who supply us with computerized transfer tax and recording informationUnfortunately, in this particular case, the data was not updated by the provider and therefore inaccurate information resulted in this shortfallThe problem has since been addressed and fixed, and although we sincerely apologize, it should be understood that the sellers contractually agreed to pay those transfer taxes allotted to themAdditionally, the sellers signed an “Acknowledgment and Receipt of Settlement Sheet” agreement with our company, which states in Paragraph 6, “[t]he parties understand and agree that the accuracy of the information furnished to Classic Settlements as to...taxes....[is] not guaranteed by Classic Settlements.” Paragraph also states, “[t]he parties understand and agree that Classic Settlements may make any subsequent proper adjustments in the event any information and/or items on the settlement statement are incorrect or if funds collected for any items prove to be insufficient, and agree to pay and/or reimburse Classic Settlements any further sums found to be due since all computations and entries on the settlement statement are subject to final audit.” Finally, the second to last paragraph in the document, entitled “Correction Agreement – Limited Power of Attorney” states,“[t]he undersigned...Seller, for and in consideration of the Lender funding the closing of the loan and the Settlement Agent closing the loan, agree that, if requested by the Lender or Classic Settlements, to fully cooperate and adjust all errors discovered in any or all of the closing documentation presented at settlement.”This variation in recordation tax was no doubt evident when compared to the sellers’ preliminary cost analysis sheet presumably provided and discussed with their agent up frontYet nothing was said at settlement to alert us to this differenceThe complaint also takes issue in how long it took for our company to reach out and request the additional tax fundsThe reason for the delay was due to the fact that we did not hear from our recorder about the shortfall until after we sent the Deed for recording, they submitted it to the Clerk of the Court for review and then the ultimate rejectionOnce we were notified, we notified the sellerThis also, unfortunately, takes some time to go through the processNotwithstanding the seller’s comment in the complaint, we did in fact front the money and record the DeedHe spoke to one of our attorneys who was not aware at the time they spoke that we had already made arrangements to get the Deed on record asapFinally, we again apologize to the sellers that this issue has occurredBecause we had already waived our $closing fee to the sellers as a courtesy, the only monies Classic actually collected from the sellers for our services (other than cost of wires) was $for Doc Prep/Lien Certifications Tax Verification and notariesAs a measure of good faith, we offer to refund the $to the sellerIt is unfortunate, but mistakes do happenClassic Settlements prides itself on its sterling reputation in this industry and the last thing we want is for a customer to have a bad experienceWe have numerous letters that thank us for the polar-opposite experienceI assure you, our desire is, has always been and always will be, to provide the best possible service to the real estate purchasing/refinancing publicThank you again for this opportunitySincerely,Jonathan *L***, Managing Attorney Classic Settlements, Inc

From* [redacted] < [redacted] @***.com>Date: Thu, Oct 22, at 6:AMSubject: Re: You have a new message from the Revdex.com of Metro Washington DC & Eastern Pennsylvania in regards to your complaint # [redacted] .To: "[email protected]" The water bill has been paid

We had what seemed like a simple settlementWe received our check from this settlement companyThen days later the company calls to tell us that our check we received at closing will bounceSure enough, I checked my bank account and the check they wrote us bouncedThough they are sending a new check over night, this is completely unacceptableWe have to now submit our bank fee's to them to be reimbursedFor a company that is handling settlements everyday, they need to be aware of how their actions affect everyoneI am speechless

[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]Revdex.com:I have reviewed the response made by the business in reference to complaint ID ***, and find that this resolution is satisfactory to me. Regards, *** ***

September 12, 2014Dear [redacted]:
We are in receipt of your letter of September 4, 2014, along with the attached complaint, and greatly appreciate the opportunity to respond to the allegations made therein.
Immediately upon receipt of your letter, I pulled and reviewed our...

file for the real estate transaction in question, and discussed the circumstances surrounding the processing, closing and disbursement of the Settlement with the Processor and Closer who worked on this matter. After gathering all of the information from the parties involved, I would like to address allegations of the complaint.First, please note that Classic Settlements is a well-established business, having conducted over 40,000 real estate closings since 1994, all over the State of Maryland and the District of Columbia, We understand the processes and procedures necessary to complete real estate settlements and the recording of documents related thereto. Looking at this specific transaction, it appears that we gathered all of the necessary and relevant information required to transfer the property, including a title search, homeowners association details, as well as repeated communications with the buyers’ lender, among other things. We had everything we needed in order to close as scheduled on Monday, July 28, 2014 at 10am on the Eastern Shore - except that the buyer's lender was not ready at the appointed date and time. Our Closer reached out to the parties and agents the Friday afternoon before the scheduled closing, July 25, explaining that the lender's documentation was not finalized, and that it would be best to reschedule this for 3:30pm on Monday, July 28. The delay in getting said documents was the sole responsibility of the lender and had absolutely nothing to do with Classic. In fact, it was our forward-thinking in pushing the closing back a few hours that saved a morning of stress and anxiety, and instead resulted in, from our accounts, a very smooth settlement with no changes to the Settlement Statement nor other documents. It should be noted, one of the real estate agents went so far as to compliment our Closer on doing such a nice job. The Closer was not only on-time to the rescheduled appointment, she in fact arrived early – and fully prepared to do business,Regarding the claim that our document, specifically the wire instructions, was “inaccurate’ and had to be corrected, also appears to be untrue. My investigation into this issue found that the sellers, who were divorcing (which was not disclosed to Classic until our Closer arrived for settlement), asked us to divide up their proceeds per their instructions and send them out via 3 wires – one to the husband, one to the wife, and one to the wife’s title company for her subsequent real estate transaction out of state. When one of the agent’s asked for a copy of our wire receipt to the title company, they saw reference to both of the sellers’ name on the receipt and must have thought we indicated to the title company it was for both sellers, not just the wife. The fact is the wire was sent only on the wife’s behalf and was properly credited without any problem whatsoever. The reference to both sellers on the wire receipt was simply for memo purposes indicating to us the sellers of our transaction. Again, the wire was processed by the receiving bank as contemplated without delay or confusion.
As to the incorrect amount of state recordation taxes being collected, we are extremely sorry this occurred. Doing business in every county in the State of Maryland, the City of [redacted] and the District of Columbia, we rely on outside service providers who supply us with computerized transfer tax and recording information. Unfortunately, in this particular case, the data was not updated by the provider and therefore inaccurate information resulted in this shortfall. The problem has since been addressed and fixed, and although we sincerely apologize, it should be understood that the sellers contractually agreed to pay those transfer taxes allotted to them. Additionally, the sellers signed an “Acknowledgment and Receipt of Settlement Sheet” agreement with our company, which states in Paragraph 6,
“[t]he parties understand and agree that the accuracy of the information furnished to Classic Settlements as to...taxes....[is] not guaranteed by Classic Settlements.”
Paragraph 7 also states,
“[t]he parties understand and agree that Classic Settlements may make any subsequent proper adjustments in the event any information and/or items on the settlement statement are incorrect or if funds collected for any items prove to be insufficient, and agree to pay and/or reimburse Classic Settlements any further sums found to be due since all computations and entries on the settlement statement are subject to final audit.”
Finally, the second to last paragraph in the document, entitled “Correction Agreement – Limited Power of Attorney” states,“[t]he undersigned...Seller, for and in consideration of the Lender funding the closing of the loan and the Settlement Agent closing the loan, agree that, if requested by the Lender or Classic Settlements, to fully cooperate and adjust all errors discovered in any or all of the closing documentation presented at settlement.”This variation in recordation tax was no doubt evident when compared to the sellers’ preliminary cost analysis sheet presumably provided and discussed with their agent up front. Yet nothing was said at settlement to alert us to this difference.
The complaint also takes issue in how long it took for our company to reach out and request the additional tax funds. The reason for the delay was due to the fact that we did not hear from our recorder about the shortfall until after we sent the Deed for recording, they submitted it to the Clerk of the Court for review and then the ultimate rejection. Once we were notified, we notified the seller. This also, unfortunately, takes some time to go through the process. Notwithstanding the seller’s comment in the complaint, we did in fact front the money and record the Deed. He spoke to one of our attorneys who was not aware at the time they spoke that we had already made arrangements to get the Deed on record asap.
Finally, we again apologize to the sellers that this issue has occurred. Because we had already waived our normal $350 closing fee to the sellers as a courtesy, the only monies Classic actually collected from the sellers for our services (other than cost of wires) was $150 for Doc Prep/Lien Certifications Tax Verification and notaries. As a measure of good faith, we offer to refund the $150 to the seller. It is unfortunate, but mistakes do happen. Classic Settlements prides itself on its sterling reputation in this industry and the last thing we want is for a customer to have a bad experience. We have numerous letters that thank us for the polar-opposite experience. I assure you, our desire is, has always been and always will be, to provide the best possible service to the real estate purchasing/refinancing public. Thank you again for this opportunity.
Sincerely,Jonathan *. L[redacted], Managing Attorney Classic Settlements, Inc.

Review: Classic Settlements was responsible for the sale and closing transaction of our home to a buyer. All parties provided the required information in advance, there was a 60 day period to collect same. On July 28, 2014, closing day, the representative from CS was late, unprepared (the documents were not ready), inaccurate ( had to be corrected with proper fund wire instructions).

Regardless of a disorganized, unprofessional administration of the closing, all parties completed the transaction ( or so we thought ), including all the signed, notarized documentation. We have made several significant personal financial actions since the closing based on the amount of the proceeds from the sale of our home.

Seventeen days later I was contacted by CS and informed that an error was made (by them as I later learned ) in the calculation of the State Recordation Tax and we owe them $2139.75. Mind you the calculation is on par with a fifth grade math problem ( $12 per 1K of sale price ) and this is the only thing this company does and is paid to do. This is an egregious example of professional incompetence, bordering on unethical. At this time they have not recorded the Deed by funding the tax while resolving their error. So the buyer (unaware) does not own the home due to their unprofessional and incompetent business practices.

I have bought and sold eight properties to date and have over 40 years in business as a senior executive and have never seen anything like this.Desired Settlement: As selling party in this transaction, we fulfilled all required actions. Classic Settlements did not deliver the product, service and outcome that they agreed to be compensated for. That failure has caused significant financial disruption and stress for both of us. It is only fair the Classic Settlements compensate us for their enormous service failure in this situation.

I have sent a check made out to [redacted] County for the recordation to proceed, to CS and expect that they will compensate us on that amount $2139.75

Business

Response:

September 12, 2014Dear [redacted]:We are in receipt of your letter of September 4, 2014, along with the attached complaint, and greatly appreciate the opportunity to respond to the allegations made therein.Immediately upon receipt of your letter, I pulled and reviewed our file for the real estate transaction in question, and discussed the circumstances surrounding the processing, closing and disbursement of the Settlement with the Processor and Closer who worked on this matter. After gathering all of the information from the parties involved, I would like to address allegations of the complaint.First, please note that Classic Settlements is a well-established business, having conducted over 40,000 real estate closings since 1994, all over the State of Maryland and the District of Columbia, We understand the processes and procedures necessary to complete real estate settlements and the recording of documents related thereto. Looking at this specific transaction, it appears that we gathered all of the necessary and relevant information required to transfer the property, including a title search, homeowners association details, as well as repeated communications with the buyers’ lender, among other things. We had everything we needed in order to close as scheduled on Monday, July 28, 2014 at 10am on the Eastern Shore - except that the buyer's lender was not ready at the appointed date and time. Our Closer reached out to the parties and agents the Friday afternoon before the scheduled closing, July 25, explaining that the lender's documentation was not finalized, and that it would be best to reschedule this for 3:30pm on Monday, July 28. The delay in getting said documents was the sole responsibility of the lender and had absolutely nothing to do with Classic. In fact, it was our forward-thinking in pushing the closing back a few hours that saved a morning of stress and anxiety, and instead resulted in, from our accounts, a very smooth settlement with no changes to the Settlement Statement nor other documents. It should be noted, one of the real estate agents went so far as to compliment our Closer on doing such a nice job. The Closer was not only on-time to the rescheduled appointment, she in fact arrived early – and fully prepared to do business,Regarding the claim that our document, specifically the wire instructions, was “inaccurate’ and had to be corrected, also appears to be untrue. My investigation into this issue found that the sellers, who were divorcing (which was not disclosed to Classic until our Closer arrived for settlement), asked us to divide up their proceeds per their instructions and send them out via 3 wires – one to the husband, one to the wife, and one to the wife’s title company for her subsequent real estate transaction out of state. When one of the agent’s asked for a copy of our wire receipt to the title company, they saw reference to both of the sellers’ name on the receipt and must have thought we indicated to the title company it was for both sellers, not just the wife. The fact is the wire was sent only on the wife’s behalf and was properly credited without any problem whatsoever. The reference to both sellers on the wire receipt was simply for memo purposes indicating to us the sellers of our transaction. Again, the wire was processed by the receiving bank as contemplated without delay or confusion.As to the incorrect amount of state recordation taxes being collected, we are extremely sorry this occurred. Doing business in every county in the State of Maryland, the City of [redacted] and the District of Columbia, we rely on outside service providers who supply us with computerized transfer tax and recording information. Unfortunately, in this particular case, the data was not updated by the provider and therefore inaccurate information resulted in this shortfall. The problem has since been addressed and fixed, and although we sincerely apologize, it should be understood that the sellers contractually agreed to pay those transfer taxes allotted to them. Additionally, the sellers signed an “Acknowledgment and Receipt of Settlement Sheet” agreement with our company, which states in Paragraph 6,“[t]he parties understand and agree that the accuracy of the information furnished to Classic Settlements as to...taxes....[is] not guaranteed by Classic Settlements.”Paragraph 7 also states,“[t]he parties understand and agree that Classic Settlements may make any subsequent proper adjustments in the event any information and/or items on the settlement statement are incorrect or if funds collected for any items prove to be insufficient, and agree to pay and/or reimburse Classic Settlements any further sums found to be due since all computations and entries on the settlement statement are subject to final audit.”Finally, the second to last paragraph in the document, entitled “Correction Agreement – Limited Power of Attorney” states,“[t]he undersigned...Seller, for and in consideration of the Lender funding the closing of the loan and the Settlement Agent closing the loan, agree that, if requested by the Lender or Classic Settlements, to fully cooperate and adjust all errors discovered in any or all of the closing documentation presented at settlement.”This variation in recordation tax was no doubt evident when compared to the sellers’ preliminary cost analysis sheet presumably provided and discussed with their agent up front. Yet nothing was said at settlement to alert us to this difference.The complaint also takes issue in how long it took for our company to reach out and request the additional tax funds. The reason for the delay was due to the fact that we did not hear from our recorder about the shortfall until after we sent the Deed for recording, they submitted it to the Clerk of the Court for review and then the ultimate rejection. Once we were notified, we notified the seller. This also, unfortunately, takes some time to go through the process. Notwithstanding the seller’s comment in the complaint, we did in fact front the money and record the Deed. He spoke to one of our attorneys who was not aware at the time they spoke that we had already made arrangements to get the Deed on record asap.Finally, we again apologize to the sellers that this issue has occurred. Because we had already waived our normal $350 closing fee to the sellers as a courtesy, the only monies Classic actually collected from the sellers for our services (other than cost of wires) was $150 for Doc Prep/Lien Certifications Tax Verification and notaries. As a measure of good faith, we offer to refund the $150 to the seller. It is unfortunate, but mistakes do happen. Classic Settlements prides itself on its sterling reputation in this industry and the last thing we want is for a customer to have a bad experience. We have numerous letters that thank us for the polar-opposite experience. I assure you, our desire is, has always been and always will be, to provide the best possible service to the real estate purchasing/refinancing public. Thank you again for this opportunity.Sincerely,Jonathan *. L[redacted], Managing Attorney Classic Settlements, Inc.

Consumer

Response:

[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me. Regards, [redacted]

Review: On 4/29/14 at 12:05PM EDT, my settlement conference was completed for a property I sold. As the seller, I expected to get the proceeds wired to my accounts at settlement time. When I didn't have the funds by 12:56PM, I emailed Classic Settlements ("CS") asking why the money wasn't transferred yet. CS replied in writing at 1:03PM, "wire is being set up now." At 1:22PM, CS sent email stating that the person who wires the funds was at lunch and that I should "Please give her some time to get back to her desk and input everything." At 1:33PM I replied, stating I was surprised that the funds were not wired immediately. I couldn't understand why going to lunch precluded my getting paid. But I waited patiently. At 1:37PM on 4/29 (settlement date), CS emailed me that the funds would be wired on that very same day: "She usually gets back pretty quickly. The funds will be wired today." The funds were not wired that day. On 4/30, first thing in the morning, I left CS a voice mail and sent an email requesting a call back. They never called. CS emailed me at 9:14AM on 4/30 stating, "The payoffs are being wired this morning," and "We will scan and email the confirmations this morning." At 9:53AM, CS emailed me, "We have to overnight 2nd payoff because [bank #1] doesn't want wired funds." This was actually incorrect information. At 2:47PM, I replied, "So why wasn't this wired yesterday?" CS responded evasively, "There is no guarantee that wires are sent for payoffs the same day." This made no sense to me and was the first I'd heard that I would not get my funds on settlement day. I asked why this wasn't communicated to me sooner and got no response. After that, CS never got back to me. Another full day went by. After close of business on 5/1/14, CS has still failed to transfer my funds to my mortgage lenders. I stated in an email sent before business opening on 5/1 that I will be filing this complaint with the Revdex.com. I never heard back and still do not have my money. Not one word from CS all day.Desired Settlement: I want an apology and a REAL (honest) explanation from Classic Settlements as to why (1) It was never communicated to me in the weeks prior to closing that CS had no intention of releasing my funds on settlement date, and (2) WHY they fail to release funds in a timely manner in general, and (3) Why they continually lied to me, day after day, making fraudulent statements that "your funds will be wired today." I also want reimbursement for interest + time spent trying to collect MY money from CS.