Tuesday, April 13, 2010

Alabama Family Faces Foreclosure On Recent Home Purchase; Escrow Agent Failed To Pay Off Former Owner's Existing Mortgage Out Of Closing Proceeds

In Dothan, Alabama, the Dothan Eagle reports:
  • A Dothan family is scrambling to save their new home after it appears the money that was supposed to pay off the existing mortgage on the home has disappeared. Foreclosure on the home is scheduled for April 27, just 20 days after Chester and Judy Nolin moved into their new home in Dothan.

  • The Nolins recently bought a house in Dothan after selling their home in Ozark. They got a realtor and applied the money gained from the sale of the Ozark home to the Dothan home. The amount did not completely satisfy the mortgage amount, so they borrowed additional money. The realtors suggested using local company Title Pro Closings to handle the closing, which appeared to go smoothly in late January.

  • According to the Nolins and their attorney, David Hogg, Title Pro Closings was supposed to pay the existing mortgage holder to satisfy the mortgage. However, as the Nolins were beginning to decorate their new home this week, they learned their Whitfield Estates home was on the list for foreclosure. “They’re out of their house in Ozark, about to be put out in Dothan,” Hogg said. “They have learned the money from the equity in their house in Ozark was never applied to pay off the existing mortgage on their new home in Dothan.”

  • Hogg said he has had no success reaching anyone at Title Pro Closings. He fears other homebuyers (and sellers) may have been affected. The matter is under investigation by the Houston County Sheriff’s Department. No arrests have been made at this point. “We’re doing everything we can to protect the Nolins,” Hogg said.

Source: Family in shock after foreclosure notice on home supposed to be paid for.