Title Company error cost me money

[Patricia Cote]

My first wholesale deal closed a month ago. The end buyer closed a few days before I went to pick up my check. My check was short $2500. I explained that I had supplied EMD funds for that amount (yeah, mistake, I'll never do that again) and instead of being reimbursed to me, the credit was given to the end buyer. The title company said they have disbursed the funds and I need to get a check from the end buyer. The end buyer refuses, said it's not her responsibility. What can I do?

[Chris Mason]

Quote from @Patricia Cote:

Well, today I have some good news.  

The title company has agreed to send an amended settlement statement to the end buyer's lender, requesting an adjustment, and they will issue me the funds when the adjustment has been made.  

 In other words, they kicked the can to someone who isn't going to do anything with that can but sent it to the compliance department with a simple question: "Do we have any liability exposure?" -- pretty sure the answer is "no." From the standard perspective of a standard mortgage, you aren't even a party to the transaction. Maybe the buyer owes you something, maybe the seller does, maybe the title company does, but there's no way a mortgage lender owes you anything, you aren't even their client. 

Which, again, escrow/title knows, but their goal is that you go pester the lender for it, instead of pestering them. I am 100% certain they have a call center that will spend as many hours as you like, bouncing you between people reading a script from a computer screen...

It's kind of a known risk of operating in a gray market. Being easily disavowed, that is.