Posted by grapebed on 8/15/12 7:55pm
Msg #430610

Title Co.'s lies, lies and more lies. Regulatory violation?

I accidentally sent a loan package to the wrong Title Co. The title company agreed to overnight it to the correct title company. Next day, the package never arrived. The title company agreed to over nght it again to the correct title company. The package never arrived. They promised again to overnight the package. It never arrived. They said that they had sent it and there was nothing more they could do.

Meanwhile, I am sure that I am going to be sued. The correct title company is asking me about mu E & O, etc. They get senior management of both T/C's involved. Then suddenly the package mysteriously appears at the first T/C. They were actually hiding the documents. Is this a reportable regulatory violation?

Reply by jba/fl on 8/15/12 8:04pm
Msg #430612

Who is the first company? The one who hired you or the wrong one where the package was sent?

Just get paid before you stir the pot any further.

Reply by docs1954CA on 8/15/12 10:39pm
Msg #430631

You screwed up twice;1) shipping to the wrong company,

And posting your error,and pointing the finger somewhere else...Wanna try for the hat trick?

Reply by OR on 8/15/12 8:04pm
Msg #430613

It should happened during the RTC period. If you have proof that the wrong Title company did not send the docs in a timely matter, then it is the worng Title Co falt. If they did and the right title company says they did not get them for days then that is not you falt. That is all trackable. I just had that happen to me. Title co lied and it was provable. I would not worry unless you sent the package after the RTC was over.

Reply by Linda_H/FL on 8/15/12 8:17pm
Msg #430615

I completely disagree

"If you have proof that the wrong Title company did not send the docs in a timely matter, then it is the worng Title Co falt."

Though they may not have done things right or timely - it's really not their problem - that's the OP's problem - they were sending it to the proper title company as a courtesy - technically they should have just sent it back to OP, unopened, and let OP forward it properly (on OP's dime). Provable or not, you'd have to prove that the companies did it all intentionally.

Mistakes happen but IMO all the fault falls squarely on the OP and it's up to OP to make it right...and not place blame anywhere else. As for the E&O, as Rick said - unless it's Signing Agent E&O with provisions for this type of error it's not going to be covered.

Sorry this isn't all kittens and butterflies, but owning mistakes is part of the business. I wish good luck to the OP - The best OP can hope for is that the loan finally funded and there was no rate loss and other related costs as a result (increased payoff, escrows, interst adjustment, loss of loan, redraw, etc etc)..

Reply by RickG/CA on 8/15/12 8:11pm
Msg #430614

Re: No need to worry about your E&O

Your coverage probably won't cover this kind of error.

Reply by Frank/NC on 8/15/12 8:39pm
Msg #430619

What's this with Title company lies and more lies as well as regulatory violation? You made the mistake so don't blame others for not sending the package on. It's entirely possible the company to whom it was sent to in error, did send it on and if so, it was done by them as a favor to you. You then state the package then miraculously shows up and want to know if there is a rerportable regulatory violation. You seem to be looking to place the blame on everyone else when, in fact you have to take ownership of the entire problem. You also indicate that senior management of both Title companies got involved. Don't you think they should have been involved?

Reply by Linda_H/FL on 8/15/12 8:45pm
Msg #430620

I could be wrong, but I think if "senior management" is involved, the issue goes far beyond "where's the package and who didn't send it and where is it"....I'm thinking it's now elevated to a

Reply by Linda_H/FL on 8/15/12 8:46pm
Msg #430621

sorry..not sure what happened...anyway

elevated to a level of losses and damages to the borrower, especially since they're looking to the notary E&O...

Like I said, I could be wrong...I hope I am.

Reply by MW/VA on 8/15/12 10:17pm
Msg #430629

IMO if your error caused the loan not to fund on time, they

could potentially have a claim on your E&O. I think I'd just sit tight, cooperate with them, and see how it plays out.
You didn't say where any of these cos. are located, but some states are more litigious than others.

Reply by GOLDGIRL/CA on 8/15/12 11:07pm
Msg #430633

Try proactive

This is definitely a major mess. However, I'm thinking what I'd do if I ever made such a bonehead mistake (and it's only a matter of time...).

Instead of relying on the TC#1 to forward on docs, don't even get them involved. Tell them to sit on the docs and you'll have someone come in and get them. Then call a fellow trusted NR notary in that town to go in and get them and send to the correct TC. This, of course, has its risks, but if the SS or TC#2 approved this approach, it's better than expecting TC#1 to send them on, which judging by this and past posts, seldom happens without some enormous glitch.

Or, call FedEx; ask them to immediately retrieve the pkg and send it elsewhere. They reroute pkgs during transit all the time, but I'm not sure about after delivery. But I think they could do this.

Any other ideas?

In any case, notary would pay big $$$ to get this done, but it's better than the mess grapebed is in now.

Reply by sueharke on 8/16/12 12:09am
Msg #430636

Re: Try proactive

One time a SS gave me the address of the wrong Title Company to send the documents. I was able to track the delivery and prove that I had been given the wrong address by the SS. Luckily the correct Title company was across the street from where I had mailed the package and it seems they got each others documents on a regular basis.

Reply by BrotherOwner on 8/16/12 12:22am
Msg #430638

Re: Try proactive

You're on the right track GG. A package is a package, is a package. We " lovingly" refer to them as "DOCS", but it is just a package, no matter HOW important. This is a job for the carrier. They all have a dept. that deals with missent/misdiected/misdelivered, and just plain missing packages. That dept has its own procedure to retrieve the package and redeliver properly. They DO retieve packages that have been delivered, or at least attempt to. The carrier KNOWS where and to whom the package was delivered. Introducing a trusted NR buddy just muddys the situation, and introduces another party who is not part of the normal chain of delivery. Would the WRONG title co. release it to me? Probably not. (but if it is missent to MY town, I'll gladly give it a shot for you GG). My educated guess tho is that unless a weekend is involved, most likely it will not make it during the RTC period. I'd say 85/15 agianst being timely.

Reply by Linda_H/FL on 8/16/12 5:21am
Msg #430643

BrotherOwner, I almost never disagree with you

but there's one fly in the ointment in your post that I believe has been overlooked..

"This is a job for the carrier. They all have a dept. that deals with missent/misdiected/misdelivered, and just plain missing packages"

From the carrier viewpoint, this package was NOT missent, misdirected or misdelivered - it was delivered properly according to the shipping info/airbill on the package - so IMO they're out of it - they have no way to retrieve or correct something that's been done properly.

JMO

Reply by MikeC/TX on 8/16/12 5:50pm
Msg #430749

Re: BrotherOwner, I almost never disagree with you

"From the carrier viewpoint, this package was NOT missent, misdirected or misdelivered - it was delivered properly according to the shipping info/airbill on the package - so IMO they're out of it - they have no way to retrieve or correct something that's been done properly."

Not really - if the shipper calls UPS or FedEx and says that a) the package was addressed incorrectly, and b) the party that received it is holding it for pickup, they WILL pick up the package and redeliver. It's gonna cost you a few bucks (possibly more than the original shipping charge), but it's a better solution than sweating out whether the person who incorrectly received it (and has no responsibility for its proper delivery) is actually going to get around to shipping it out any time soon.

The OP did what he/she thought was best, and sometimes in a moment of panic you make the wrong decision. We've all been there at one time or another. Rather than try to blame the blameless, the OP should just own the error and learn from it. Hopefully, it will not be an expensive lesson.

Reply by kcg on 8/16/12 7:58am
Msg #430657

Re: Try proactive - You are correct

This recently happened to me....a friend sent out 2 gifts UPS....when ours arrived and we opened it, I knew immediately it was intended for the friend in Ohio. I called and said I'd go to UPS and ship it....my friend said no, she'd handle it. The next day, UPS came to my door and picked up the box... day after, we had our gift which had been in Ohio. I was pleasantly surprised to learn that this is a possibility...just in case this OP's nightmare ever happens to me, which I pray it does not.

I am very careful when working with 2 or more packages....I write the BO name on the back flap and look at the bound package when slipping it in....sometimes several times. I don't seal anything until I peek one more time. Overkill, perhaps but I don't think you can be too careful.

I sympathize with you in this situation and sincerely hope that it all works out to everyone's satisfaction.

Reply by Lorraine Lougheed on 8/16/12 12:20am
Msg #430637

This one is certainly a mess, I think had I been in your situation as soon as I realized that the package went to the wrong title company and it was done by my error I would have let the correct title company know that I would go back and resign immediately.

Reply by ReneeK_MI on 8/16/12 6:41am
Msg #430651

Me too, Lorraine! n/m

Reply by MW/VA on 8/16/12 10:05am
Msg #430668

Lorraine's solution is the best one! n/m

Reply by desktopfull on 8/16/12 6:50am
Msg #430652

This is a prime example of why there is so much hand holding

from the TC's and SS's. I'm still curious as to how this could have even happened. If you mixed up packages and put the wrong shipping label on one, wouldn't that mean that you would have cross delivered 2 sets of docs? I hope you have a business liability policy, because E&O only covers notarial errors, of which this wasn't.

Why in the world would anyone work on two packages at the same time and risk the potential of intermixing the docs, instructions, and shipping labels? What's worse, you've violated the borrower's privacy and now you want to find a way to report the TC to a regulatory agency that received the docs (due to your error) for not forwarding them to the correct location in a timely manner, as if it is their fault. This is about as unprofessional as it gets.

Reply by MW/VA on 8/16/12 11:14am
Msg #430684

Agreed, and even worse by trying to place the blame on

someone else. :-(

Reply by grapebed on 8/17/12 6:27am
Msg #430777

Its unfortunate that the board condones lying by TC(1)

TC(1) eventually "fessed up" to lying about sending the docs. They faxed them to TC(2) and mailed the originals.
The loan funded based on the faxed copy.

Reply by MW/VA on 8/17/12 6:51am
Msg #430780

So they saved your hide on this one. I'm sure they did

that as a professional courtesy to the other tc. They didn't have to do any of that.
That pkg. was sent to them by mistake & was not their responsibility. Glad to hear it all worked out. I'm sure you've learned a valuable lesson here.

Reply by desktopfull on 8/17/12 9:19am
Msg #430789

Don't condone passing the buck on your error. Be glad that

the TC that received the docs didn't just look at them, see that they weren't one of their closing, and run them through the shredder. They saved your rear and you want to castigate them, wow!