Maryland Couple Faces Foreclosure After Closing Agent Allegedly Fails To Pay Off Existing Mortgage In Home Refi; Others Find Themselves In Same Shoes

In Owings Mills, Maryland, WBAL-TV Channel 11 reports:

• A local family who refinanced their home said they found out their original mortgage was never paid, and before they could get the problem resolved, the title company that did the leg work went out of business. According to state records, Maple Leaf Title Company had been in business since March 1999. But after August 2009, the company could not legally operate in Maryland because it did not renew its license.

• "We get closer and closer to foreclosure, so it's stressful for us, because in a month we may have our house going up for auction," said Owings Mills resident Jim Wilkerson. The Wilkerson family recently received a notice to foreclose from a bank that they believed they had paid. This past summer, the couple refinanced their home and thought everything was fine until they started getting statements from two banks. They said they found it difficult to get answers.

• "I think that's been the most shocking. When we refinanced, you never think you're putting everything at risk until that check makes it from the title company to your lender," Jen Wilkerson said.

• The Wilkersons said they have plenty of questions for Maple Leaf Title, and so do other customers of the title company. All said they want to know what happened to the money that was supposed to pay off their original mortgages. The 11 News I-Team found Maple Leaf's offices closed and the phone disconnected. Company President Anthony Weis only told the I-Team to talk to his attorney, with whom reporter Barry Simms was not able to get in touch.

• The I-Team discovered that a title insurance company is suing Maple Leaf. According to a civil lawsuit, Fidelity National Title Insurance asked Maple Leaf to terminate an agreement on Oct. 2, but then on Oct. 20, Fidelity National learned of a $600,000 misappropriation of funds by a former Maple Leaf employee. Maple Leaf took no action and did not report the theft to police, according to the lawsuit. On Oct. 21, Fidelity National discovered $3.3 million was missing from another escrow account.

• The Maryland Insurance Administration regulates title companies and said it couldn't say if they were investigating the case. "I can't talk about our investigative activities. I can tell you that any consumers that have been harmed or fear they've been harmed, we urge them to contact us," said Maryland Insurance Commissioner Ralph Tyler. Tyler said in the past few years, his office has noticed an enormous increase in similar complaints of alleged theft of funds as the economy slowed.

Source: Family: Title Co. Never Paid Our Mortgage (Title Company Has Since Gone Out Of Business).