Collapse of Vero Beach escrow company

Holy shit!!! Now THIS could affect those people who don't have subprimes, aren't being laid off, don't have ARMs, etc.

My own taxes and insurance go into an escrow account.

Okay, if this snowballs, this could affect any one of us who has a mortgage.

HOLY SHIT!!!!!!!!!!!!!!

Indian River County residents Arthur and Patricia Clyde filed a police report Tuesday stating they lost $50,000 placed with Coastal Escrow Services to purchase a property in the county. The couple said that at a closing on Aug. 20, Hatch informed them the funds were and would continue to be unavailable.

Chris Taylor, assistant state attorney in Indian River County, said he’s aware of the investigation.

“Once law enforcement is through with its investigation, it’s then submitted to the prosecutor’s office,” Taylor said.

Realtors entrusted millions of dollars with Coastal Escrow Services for local closings, said William Stewart of Stewart & Evans, attorney for Norris & Co. on Ocean Drive in Vero Beach.

“I’ve heard some Realtors have $1,000 or $10,000,” Stewart said. “Other companies could have $1 million or even more. We just don’t know yet.” �

It's interesting that the central banks are all pumping money into the system still.

What are they afraid of?

Maybe Cheney didn't get his sneak attack, and they are having to dump more into the system than they had expected?





I know...I know...I shouldn't be so sarcastic. None of this is a joking matter.

“In my 30 years in this business, I’ve never heard of anything like this,” he said. “Believe me, it’s a big shock to everyone. This has no reflection on the real estate market whatsoever. Obviously, this was a result of someone’s bad business practice. These are very sacred monies that aren’t supposed to be touched.” �




This incident does not seem to be tied into the market at large, but rather a local event resulting from bad buisness.

I'm keeping my fingers crossed that you are correct.

Embezzeling FUCKERS investing the money towards SUB-PRIME shit holes.

No one will be charged with the loss to all those who had money in the escrow accounts.

The handlers have already run away with the profits...

No more to see here...

Ok, before we get all freaked out. I believe this is an escrow company for the active exchange of property only. Even though we do not normally use them here in Ohio, California uses them consistantly. Whenever someone writes up a contract for buying real estate there and it's excepted the whole transaction goes "into escrow" until after the closing and then monies and paperwork are properly dispersed.

An escrow for your mortgage is another escrow completely. Many times the bank that facilitates your loan has it's own department for the escrows. They collect your installments and then pay your taxes and insurance when necessary.

Now, with that being said, my mortgage is with Countrywide and they're probably going down the tank anyway with my escrow in thier accounts.

A_G1RL

Owner of shuttered escrow firm once accused of secretly changing terms on $4.5M loan
By Alexi Howk (Contact)
Originally published 01:50 p.m., September 6, 2007
Updated 01:50 p.m., September 6, 2007


VERO BEACH — Record searches show Ira C. Hatch Jr. — the embattled local attorney who wreaked havoc on the real estate market this week after abruptly closing his escrow business — agreed to pay the federal government $875,000 in 1994 for his involvement in authorizing bad loans while working as general counsel for the now-defunct Broward Federal Savings & Loan Association.

Hatch, who also was a former Broward Federal director and president, was accused in federal court of secretly changing the terms of a $4.5 million loan to a Fort Lauderdale banker and attorney, J. Edward Houston, according to a series of reports by the Sun-Sentinel.

The loan was for purchasing a 50 percent share in a Miami office building partly owned by former Gov. Jeb Bush. Two directors involved in the court case — who were accused of authorizing bad loans — told a jury Hatch had altered the 1985 loan agreement at the time of closing to protect the borrower from legal action in the event of a default. In 1989, Hatch became a partner in Houston’s law firm.

Hatch, along with two others, agreed to a pre-trial settlement with the Federal Deposit Insurance Corp., which claimed it lost $34 million when it wrote off bad loans made by Broward Federal.

Redhead, the printing presses at the Fed.are workingnight
and day-printing 100 dollars bills.

Bush is paying for the War.

where did the money go?

I thought escrow companies were bonded or at least had liability insurance?

how could someone give them their money with no security like that if they were not insured

In most states Escrow and Title companies are one in the same. They handle the escrowed money (deposit from the buyer, contracts, contingency completions or checkoffs or waivers, tax liens, research for all recorded liens against the property (and they will not issue title insurance on the title to protect the buyer, and the lender against loss if the title should prove to be clouded with liens or otherwise not free of known and recorded liens to an extent that the property would not be marketable.)

In some states, the title insurance issuers are separate companies, but usually they are combined in one "title" or "Title and Trust" or Title/Escrow companies. The portion of them that issues title insurance must, of necessity, be regulated by the state insurance commission. Or the state Banking commission. Or both.

I find it almost UNTHINKABLE that such an entity could just "close the doors" and keep whatever buyers, sellers, and lenders funds were sitting in their accounts at the time of closure without being forced to both account for funds and who they belonged to. These companies are considered ot be a "neutral 3rd party" in the escrow - separate from buyer and seller and/or lender (if any) and as such their relationship is a fiduciary one. The are LEGALLY BOUND to act in the best interests of both Buyer and Seller, checking and re-checking that every detail of the contract of sale is met, complied with, etc. and at the end of a settlement, all money is disbursed to pay off the previous mortgage, the new mortgage is recorded by this company, and the money that is due the seller, the realtors, the title insurance company is paid for their policy of insurance, and the old escrow accounts for taxes and insurance are pro-rated to the day of closing so the seller pays the taxes up to the day of closing (also assessments, HO fees, if any, Maintenance Fees if any, and utilities, assessments,easements, etc., are paid by the seller to the day of closing and then they become the responsibility of the buyer from that day forward,

Every penny paid in and due to be paid out is disbursed and accounted for by such companies. The previous mortgage is paid off, the new loan is recorded. The new loan and the down payment are disbursed to the seller (and his mortgage company if he has a loan) and the realtors are paid their 5 to 7 percent commissions out of this account.

How in hell one could manage to just shut down, given the regulation most states have on these companies is beyond me. But then we're talking about Florida which is not know for financial or legal responsibility. Jeb is more crooked than GW and that's saying a LOT!

Given today's headlines about American Home Mortgage, and their default with regard to tax and insurance escrows, this isn't such a "local event."