Posted by BrendaTx on 7/30/08 4:58pm
Msg #257795

LFC and the Bounced Check (Cassie's)

Moral of the story...

Next time ANY title company bounces a check, write yourself a note NOT to accept another job from them.

A financially stable title company doesn't have checks bounce. Period.

They have relationships with their banks.

If you are accustom to dealing with people or businesses which bounce checks, make another note: It's NOT a first offense in that person/business's history. They are full of crap if they say it was an error.

Mostly this is for all those folks who said it was an alarmist's point of view to have concerned. I would have bet money on it...sadly...but I knew it was coming if LFC bounced ANY kind of a check to a notary.

Reply by jba/fl on 7/30/08 5:05pm
Msg #257798

More commentary (FWIW) on this co:

Started with Msg #256929 - the bouncing check
Anyone have a check bounce from Lenders 1st Choice?

Msg #256933 - one comment (Brenda/TX)
a sign of another one circling the drain.

Msg #257396 (forgot who)

they were having some issues with their bank and corporate decided to close the account.
…as soon as they got their new account up and running (ok? How are they funding?),… how does a large corp like that have such issues and no back up plan?


Msg #257677 (forgot this one too)
Here is an Out Of Office Reply I got from Laura Campos at Lender First Choice: "Will be out of the office as the company is no longer"

Msg #257754 Gina, Ocean Pacific

Closings that have funded should be paid since those are trust accounts and the title company has fiduciary responsibility since they have received the funds.

Now, my comments: If they are no longer, how will they pay. They have no bank account, where will the check come from? Just because they fund, does not mean they pay (think EFS)

Pollyana syndrome will not help, wishing on stars will not help. First to be paid will be employees let go today, and I’m thinking that IF they do get paid (payroll company), then perhaps bankruptcy will follow quickly as that will take a lot of money too. Then everyone will be in line, checking their 1099's for accuracy at the end of the year prior to filing. Again - the attorneys will make out.

Reply by ZeeCA on 7/30/08 5:27pm
Msg #257806

order of payment: Govt FIRST, employees SECCOND and whatev

$$$ is left is than for anything else (notaries, electricity, etc etc)

Reply by Signor and Company, LLC - Kenneth on 7/30/08 5:35pm
Msg #257812

Re: order of payment: Govt FIRST, employees SECCOND and whatev

Our bank notified us of 10 bounced checks from them today. They told my business manager that they were changing banks because of "issues" with US Bank and we would be paid in order. In order of what?

We also have a few thousand dollars in completed work that we were not paid for yet.

This is a shame. We have been with them from their beginning and I considered them one of the best if not the best company to work with in terms of communication and payment.

Reply by BrendaTx on 7/30/08 5:53pm
Msg #257818

Because of Cassie's post about the bounced check

I turned down two LFC's Friday. One came through on Thursday which didn't meet my fee, thank goodness.

I cannot imagine how angry I would be.

Reply by Kevin/Ct on 7/31/08 9:30am
Msg #257922

Re: Because of Cassie's post about the bounced check

Shades of the Bridgespan disaster in 2004

Reply by Philip Johnson on 7/30/08 6:50pm
Msg #257833

I would think in SC as lawyers you'll be taking them

to court over issuing bad checks. Of course if they dissolve, that won't get you much either.

Reply by Loretta on 7/30/08 7:25pm
Msg #257839

I just read that LFC is OUT OF BUSINESS....

Everyone loses.

Reply by pan/nd on 7/30/08 8:03pm
Msg #257846

Re: I just read that LFC is OUT OF BUSINESS....

Loretta,

The lawyers won't lose.

Reply by desktopfull on 7/30/08 8:17pm
Msg #257849

I did 3 purchases for LFC this month, if I don't get paid

I'm reporting it as RESPA violation under Section 8. Of course the loans funded the day of the closing. The money was already in trust and I was on the HUD. They were sent to me from the Longwood, FL office and I will also look into state violations. I'm sick of standing on the sidelines and taking whatever garbage the SS's and TC's decide to throw.

Reply by Les_CO on 7/30/08 10:06pm
Msg #257867

Re: I did 3 purchases for LFC this month, if I don't get paid

You could probably put them out of business....but you may be just a little to late.

Reply by desktopfull on 7/30/08 11:16pm
Msg #257878

Re: I did 3 purchases for LFC this month, if I don't get paid

But someone is personally responsible, not just the company. They want me to go without getting paid then they can pay the piper for ripping me off and lose their license as well.

Reply by Les_CO on 7/30/08 11:53pm
Msg #257882

Re: I did 3 purchases for LFC this month, if I don't get paid

I agree 100%. I'd send a demand letter, then I'd file a written complaint with the FL insurance regulator (whoever that is) first, then perhaps HUD. If they file bankruptcy you can't send a demand letter, so do it now. These moneys should have been in an escrow account, and have gone to you upon closing. If not whoever prepared signed the HUD could have a problem.

Reply by sue_pa on 7/31/08 7:22am
Msg #257902

Re: I did 3 purchases for LFC this month, if I don't get paid

...If not whoever prepared signed the HUD could have a problem....

I'm 99% sure I disagree with this statement. The individual signing isn't personally responsible - the actual entity listed as settlement agent at the top is the responsible party. The individual signing is an agent for the settlement agency. When I worked in a law office I signed almost every settlement sheet that went through the doors. Should the senior partner or the bookkeeper have absconded with the funds in the trust account, I don't feel I personally would have been responsible ... the firm, the underwriters, and the insurance companies would have had to make everything right. My 1% comes in because no one will ever know unless and until a judge says so in a particular situation.

That said, because of the bouncing checks, if they owed me money (which they don't), whether or not a loan funded, I wouldn't count on any money coming in. Also, reporting them to anyone at this point is going to be an effort in futility.

Reply by Les_CO on 7/31/08 9:06am
Msg #257916

Re: I did 3 purchases for LFC this month, if I don't get paid

I agree that the “Settlement Agent” that signed the HUD is probably working as per instructions from their employer, and as such under their umbrella. Still, I would not want to be that person right now. And I suppose if there are no funds in the escrow account, that the statement that “I have caused, or will cause the funds to be disbursed in accordance with this statement.”or words to that effect, may not apply. But this was a purchase, and the funds (apparently) were disbursed, just not as per the settlement statement. But who knows, I’m not a lawyer, and I’m just guessing. I agree that reporting a company that has already closed, and that could owe millions is pretty much a waste of time.

Reply by desktopfull on 7/31/08 9:20am
Msg #257918

Re: I did 3 purchases for LFC this month, if I don't get paid

Les, I doubt I will receive a dime, but I'm reporting the criminal activity to the proper authorities regardless. The authorities can't do anything if the activity isn't reported. Whether the regulatory agencies do anything or not is up to them.

Reply by desktopfull on 7/31/08 9:11am
Msg #257917

Re: I did 3 purchases for LFC this month, if I don't get paid

I seriously doubt that I will be paid, but someone can answer for the mishandling of the trust accounts. To my knowledge that can include fines and/or jail time, and it's about time these crooks start answering to someone. At the very least, maybe it will prevent them from going to another company and doing the same thing. Not paying a notary for a signing is one thing, but dispersing funds from a trust account and not paying everyone on the HUD from the trust account is a totally different situation. These people just walk away with a "to bad, so sad" attitude and don't care who they harm and it's time they answer to the authorities for the violations of the trust accounts they are responsible for. I'm sure I'm not the only one they have done this to and it's time they get investigated for these flagrant violations. Attorneys are disbarred and put in jail for violating their escrow accounts and Title reps should lose their licenses and face the same jail time. It's time to start filing reports on this activity instead of letting them just walk away because they shut their doors.

Reply by Les_CO on 7/31/08 10:52am
Msg #257942

Re: I did 3 purchases for LFC this month, if I don't get paid

The reason we have laws and regulators, is to and try and prevent this type of thing. Our public officials usually can’t (or don’t) take action unless complaints are filed. No you may not get paid, but I for one look upon your stance, and action as a public service to be applauded.

Reply by BrendaTx on 7/30/08 10:01pm
Msg #257865

All Reverse checks bouncing...

It may be a LFC check but one of my network buddies wrote me this:


"Thank you for the info about the TCs that are going out of business.. this morning I realized that my bank returned for NSF a check for $190 issued by

All Reverse Transactions,
A Division of Lender's First Choice
5828 Lonetree Blvd.
Rocklin, CA 95765"

Reply by cassiewi on 7/31/08 5:20am
Msg #257894

Holy cow!

What a mess! I am really glad I only did one signing for them recently. I just got my bounced check back in the mail and it said "Return Reason-Refer to Maker" Really bizarre. I do have a chance of being paid because it funded do I not?

Reply by Gary_CA on 7/31/08 10:44am
Msg #257940

Take that check to your DA today.

You may not get anywhere but you've got a better chance that way than any other.

Reply by Therese on 7/31/08 11:46am
Msg #257961

Re: Bounced CHK with Refer-to-Maker....

This does not necessarily mean that the check was returned for NSF. In most cases if a check is returned for NSF that would be the Stamp on the Check. Refer-to-Maker covers mulitple issues from irregular signatures/endorsements to an encoding error.

Reply by Signor and Company, LLC - Kenneth on 7/31/08 8:37pm
Msg #258034

Re: Bounced CHK with Refer-to-Maker....

My bank said the TEN returned checks to me were because the ACCOUNT WAS CLOSED!