My client called me this afternoon. “Should I wire the money to Financial Title for my escrow?” I tell him I want to call first, to make sure they received the FedEx packet that went out to them yesterday. I have no idea that Financial Title won’t be answering my call, because they no longer exist.

Returning to my office, I find an email on my computer from Mid Valley Title. Financial Title has locked the doors. Later, I get a call from FedEx. They can’t deliver the packet we sent ’cause the business is closed, should they send it back to me?

Financial Title was unknown to me until this year. That is because they don’t have an office in Butte County. Chico Realtors were used to using local title companies until recently. With foreclosure volume increasing, many banks were cutting deals with title and escrow companies to handle the sale of REO’s at a discount. Financial Title was one of those companies.

But, no longer. Now, questions linger. What will happen to my clients deposit money? Who will take over and close the escrow?

First American Title, a company known to be large and strong, is supposed to be getting the files. But which office? Because First American Title wrote the title policies for Financial Title, they say existing title policies should be fine.

First American Title is supposed to have access to escrow funds by Friday morning. I am hoping Mid Valley Title, First American in Butte County, gets the file. I prefer to see my escrow officers face to face.

My client wants to know who has his money?  My guess- we won’t be closing escrow on Tuesday.

KGO-TV in San Francisco posted this story. 

An escrow officer with Financial Title sent out the following in an email:

We arrived to work this morning and found that we did not have access to our computer system. We were told  to pack up our personal belongings and leave the premises by mid day.  

 First American Title will be taking over all files.  Before leaving we were asked to prioritize our files in order of importance, sales that had funded and recorded first, refi’s that funded and recorded second, funds to be disbursed third and pending transaction fourth. 

 All questions regarding files in process should be directed to First American Title -  (925) 249-2819.