All Forum Posts by: Jesse LeBlanc

You might look at Georgia Code § 16-5-40.

I worked on more than one title insurance claim where an escrow agent disbursed funds before closing so while it's unusual, it's not unique.  Sometimes by mistake, sometimes by direction of the parties, sometimes in an attempt to steal money.

I believe you and your attorney are already pursuing a lien based on equitable subrogation.  While that might succeed, I hope you're also seeking a lien based on unjust enrichment in case it doesn't. 

@Chris Seveney title insurance covers IF a property closed. Doesn’t cover you when a closing company who wires your money to a prior lien holder and then never closes the deal.  FARRR DIFFERENT SCNENARIO.

@Chris Seveney Imagine you are lending in first position. Great, docs are signed. You send your wire to escrow for title or closing attorney. Buyer then ghosts and didn't send in what they owed to satisfy the HUD. Attorney by then had already sent your 2.5M to a HIDDEN lender/lien that was never disclosed to you.

Regardless of what position you THOUGHT you were going to be in, your in ZERO position now with ZERO security in the property because the deed was never recorded, property never closed and your money is gone and the sellers then go AHA!!!!  Free MONEY!!! My lender was paid off, not my problem anymore, I never signed anything with this other lender, it's the attorney's fault.  Thank you for paying off my loan but now I DON"T OWE YOU ANYTHING.  Sue me if you want.  CYA


That's what this is.  But again, not trying to get into my case.  What I found out later was that this seller and the prior lienholder is that there were private discussions and they did a "favor" and increased the payoff knowing they were about to "close" and likely thinking NO ONE would ever find out because IF it had closed, it wouldn't make much difference to the seller and the lender BUT since it didn't close (and might have been the whole fraudelent intention from the start) now the seller has a paid off property, and extra few hundred K in the sellers pocket, and when requested for the prior lender to return the wire, they REFUSE.   Now I know why, because the extra few hundred K wasn't secure if the lender thought it was legit closing.  But now if they sent the wire back, they'd be OUT that money because the borrower had already spent the extra $ on the side and the lender would be right back in the position they were in before but worse and out even more $ until the borrower finally sold their property again.

The only thing I don’t understand is why the OP, with millions of dollars at stake, asks investors on a general real estate forum for answers to specific legal questions instead of asking an attorney specializing in mortgage law. 

“They needed my funds to satisfy the hud, my money is escrow was NEVER to be wired anywhere but only remain in escrow to complete $ need for HUD along with buyers lender. My payoff was then added to the sellers side, I'd be paid back at the time of closing and seller and buyer then would take 2nd position from seller finance and my payoff on sellers side should have been wired back to me.”

IF, I understand the OP comment I quoted above, his money was needed to give the appearance that the transaction was DIFFERENT in some way (hiding seller financing ?, making it appear as if buyer was investing more?, etc.) then it really was, in order (I guess) to induce a loan or some other “benefit”.  If so, then the OP, who’s claiming he was a “transactional lender”, was a part of said fraud.  Maybe my understanding of the situation is incorrect, and if so I will gladly stand corrected.  

@Chris Seveney title insurance covers IF a property closed. Doesn’t cover you when a closing company who wires your money to a prior lien holder and then never closes the deal.  FARRR DIFFERENT SCNENARIO.