What is title escrow fraud? Escrow fraud is a felony offense and the title companies and their officers are required to be licensed and bonded. Escrow fraud is just like any other kind of fraud. It is a...
Escrow fraud is just like any other kind of fraud. It is a felony offense, and the person committing it would face criminal charges. This is another reason why it is important to go through a title company. If something like escrow fraud happens, your money will be guaranteed to come back to you through the title company. A title company is bonded. With this bond, there is an assurance that your dealing with parties that are obligated to perform those necessary transactions in a good and legitimate way. Now whenever you decide to close your self, if you do not go through a title company, if the owner writes the deed himself, you may not have any warranties. The buyer could give you an insufficient personal check, and then there you are. You would be in a lot of hot water. That is why most mortgage companies require mortgage insurance policy and a title company. They want to eliminate problems, and that is the surest way to eliminate them.
Escrow is a very special service in which delivery of a deed by a grantor (seller) to a third party (escrow officer) for delivery to the grantee (buyer) upon the happening of a contingent event. This usually means all instruments necessary to the sale (including funds) are delivered to a third (neutral) party, with instructions as to their use. As you can see, this service is the basis for the closing of a transaction. It is very important to all the parties involved. The title company with its escrow officers is required to be licensed and bonded in order to protect the public. Escrow officers play a major role in servicing the good and honest neutral party for a transaction between buyer and seller.
