Now-Defunct Title Company Accused Of Failing To Pay Off Existing Mortgage On Refinance; Owner Now Left Facing Foreclosure With Two Home Loans

In Cincinnati, Ohio, WKRC-TV Channel 12 reports:

• A local homeowner who refinanced his mortgage two years ago appears to be the victim of fraud and is now facing foreclosure. The man afraid he'll lose his home even though he's been faithfully paying his new mortgage company. Rodney Everson is afraid he'll lose his Forest Park house because someone stole the money that was supposed to pay off his first mortgage company when he refinanced. This happened in October 2007, after he contacted a local mortgage broker to get a new loan.

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• The title company, Preferred Choice Title, was to have paid off that loan. But a month later the lender called to say it never got the money. [...] Local 12 has learned the title company that was supposed to pay off the mortgage, Preferred Choice Title, was closed down late last year after it took the money but failed to pay off another $100,000 mortgage.

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• Unfortunately, although the new lender required Everson to buy title insurance to protect it, he failed to buy his own policy to protect him. And now, as a result, he may end up losing the house.

For the story, see Forest Park Man Believes He Is Victim of Mortgage Fraud.

Go here, Go here, Go here, and Go here for other stories of trust account / escrow account theft of funds. EscrowRipOffAlpha