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Barton Denice, Other/Just Looking in Mission San Jose, Fr...

I finally received a letter stating that my escrow overage funds are not being sent to me because the money is lost?

Asked by Barton Denice, Mission San Jose, Fremont, CA Fri Sep 20, 2013

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Larry Tollen’s answer
I would suggest you speak with an attorney and at the same time contact California Department of Business Oversight which has oversight over the banks and file a formal complaint against your bank.
Here's the link to their site: http://www.dbo.ca.gov/default.asp

Then I'd call your bank (Call the number on the letter you received) and ask to speak to the manager ofr supervisor. Tell them that you're prepared to file a formal complaint against them with the State Department of Business oversight, and that your next call is to your attorney to start a civil proceedings against them and that you're also going to start sending out letters to the editors of all the major California papers warning people not to ever do business with them as they are incapable of evening maintaining basic escrow accounts properly unless they give you a full accounting and send you the money in your escrow account within the next 5 business days.

Sorry you're having these problems, it's just one more in a long line of reasons to despise the big banks.
0 votes Thank Flag Link Fri Sep 20, 2013
Hi Denice,

Sorry, but getting a letter stating that funds are "lost" seems almost unbelievable. Escrow companies do not lose money that is held in escrow. They do, however, seem to quickly turn money over to the state even when the escrow or title company has the name and address of the homeowner on file.

Perhaps when they said "lost", they meant forwarding the money, as if an unclaimed, to the State. If this is the case, you can go directly to California's unclaimed property website to obtain the funds. The website for the state is http://www.sco.ca.gov

Good luck!
1 vote Thank Flag Link Fri Sep 20, 2013
My response would be, "Don't mail me another check, please wire the funds to me!"
0 votes Thank Flag Link Tue Sep 24, 2013
Locally in Northern California most escrows are handled by a title company but there are times when a real estate broker may place funds in an escrow they manage. Title companies are licensed by the California Department of Insurance. A real estate broker would be licensed by the California Bureau of Real Estate.

You can check for reported violations in the past by following the links at:
http://www.bre.ca.gov/Consumers/EscrowProcess.html

Losing money would almost surely result in discipline against anyone licensed to handle escrows. The excuse "money is lost" makes it sound like the escrow was not handled by anyone licensed to handle an escrow. I would recommend you report the violation to the appropriate California government office. There may be more missing money than you are aware of. Someone may be hoping you won't try to get the money you are owed.

Common closing charges are listed at http://julianalee.com/reinfo/closing-costs.htm

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell 650.857.1000

Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
Web Reference: http://julianalee.com
0 votes Thank Flag Link Mon Sep 23, 2013
Not possible, mortgage servicers can’t lose your money, they are required to account for every penny. I have never seen a letter that says they “lost” a borrower’s funds. That would be a rather stupid thing for a lender to put in writing. Congratulations if you have such a letter, stop by your state’s attorney general’s office tomorrow with a copy, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Mon Sep 23, 2013
Agree with Charles - there is no way a title company can "lose" funds. It's against the law to mishandle trust accounts. Talk to the branch manager - if you don't get a satisfactory answer, suggest to them that you will be taking this to the applicable authorities.
0 votes Thank Flag Link Fri Sep 20, 2013
Thank you Denice for your question:

Is this the Title Company that sent you that letter? The Title Company actually said that they will not send you your escrow overage funds because they lost the money? That is incredible!

Escrow funds are funds in a trust account. It is a very serious crime to mishandle funds (lose those funds) in a trust account.. Title companies do not lose funds in a Trust account.

This is a very serious criminal matter. This is not a civil matter.

It sounds to me like someone at the Title Company embezzled your money.

I recommend that you make a criminal complaint to The District Attorney's office with respect to this matter. Send a copy of your criminal complaint to the Title Company.

Either The District Attorney will prosecute some people at the Title Company, and put some of those people in jail, , or the Title company will find your money and return your money to you..

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
Broker/Owner: The Butterfield Real Estate Fim
Cell Phone: (408)509-6218
Email Address: charlesbutterfieldbkr@yahoo.com
BRE#00901872
0 votes Thank Flag Link Fri Sep 20, 2013
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