Posted by Negrete on 10/10/11 4:46pm
Msg #400083

Gotta love B of A and WF.

http://www.huffingtonpost.com/2011/10/10/brian-khanklink-pyron-foreclosure_n_1003339.html?1318265753&ncid=webmail5

Reply by Notarysigner on 10/10/11 5:16pm
Msg #400085

That's just sick! Thanks for the post

Reply by Shoshana/AZ on 10/10/11 6:55pm
Msg #400094

So, what happened to the money?

Seems to me somebody would have noticed. This just shows WF's humanity and ethics. Kick the people while they're down! Go ahead and raise the price of the house!

Reply by Pat/IL on 10/10/11 7:05pm
Msg #400095

Here's what I'd like to know about this: Did anybody, such as the title underwriter, ultimately issue a policy to BOA insuring its first lien position? If so, the BOA has recourse to the underwriter to be made whole, and the way to accomplish that would be for the underwriter to pay off the WF loan.

It seems strange that the bankrupt title agent's underwriters would not have followed up on the agent's files in progress, especially to make sure that all money held in escrow was properly disbursed. I don't think escrow accounts are available to the trustee in bankruptcy. That money does not belong to the bankrupt title agent.

Reply by OR on 10/10/11 8:01pm
Msg #400098

I think the issue is between B of A and Wells fargo. The Buyer kept their end of the deal. However it all stinks.

Reply by jnew on 10/10/11 8:31pm
Msg #400104

This has more than a few problems. Neither of the banks or the buyers are responsible for this. The title company went bankrupt. Closing money is held in an escrow account. No disbursements can be made from the account exclusive of the Hud 1 settlement statement. If money is not disbursed it must be held in a special escrow per an agreement signed by all of the parties. The escrowed funds would survive the failure of the title agent. The title agent has no claim on them. The underwriter needs to audit the title company's escrow account and go after the title agent if the money can't be found. In the meantime, they have to pay off Wells Fargo, record the original deed and mortgage and pay any other parties owed money from the escrow, so that it balances. I don't understand why the purchase price would change because the property supposedly closed. A replacement deed can be procured from the seller if it is lost, the same with the mortgage. There may be some details that have not been disclosed to the authors of this story.

Reply by OR on 10/10/11 9:29pm
Msg #400115

I was saying that B of A and WF need to fix this. I understane that the Title company went bankrupt. The borrower made the payment. They have a contract that was signed. It should be up to B of A and WF to fix it how ever then can. Not dump it on the buyer. JMO

Reply by Pat/IL on 10/11/11 12:09am
Msg #400123

What am I, invisible? n/m

Reply by OR on 10/11/11 11:03am
Msg #400142

Re: What am I, invisible?

Wow Wow Wow?

Reply by ReneeK_MI on 10/12/11 7:08am
Msg #400222

This lead me on an interesting foray into TX laws ...

It may well be that because this happened in TX, things are all that much more sticky. Like the others, though - I HATE these scenario stories that are obviously missing a lot of the good parts.

I'm not a lawyer, but I found enough interesting stuff to further muddle the issue. There is TX case law whereby a CPL was found worthless when the agent frauds or absconds with funds or otherwise behaves rather badly. The policy or policies, IF they were written (not clear if they ever were), would take the same stance (by my lay-person's reading comprehension).

I couldn't help but think - then WTH is a CPL good for in TX? If everything goes right and nobody does anything bad, we'll cover it?

On the other hand, I found FATCO's TX 'sample' CPL, and it seems to state clearly that it WOULD cover the Agent's actions in the event of fraud, loss of funds, etc. I couldn't find a DATE on that CPL though - might've been prior to the case law I found.

Anyway - if this is the case, the policy/policies either weren't written OR don't cover this particular flavor of BS, and the CPL in fact is only good when Good - then you do have a Triad of Misery, where nobody is really 'responsible' and nobody wants to walk away empty-handed. A Classic case of *stuff* happens?!