As previously stated, with thousands of Commercial and Industrial properties in foreclosure and default, in the State of Georgia, there are a tremendous number of title issues that must be cleared prior to the subsequent resale or re-finance of these properties. Some of these issues will result in title insurance claims and following is the second most common error that continue to cause increased claims:
Open Business Equity Lines of Credit – One of the most common causes of these claims is the failure to close the equity line. Many closing attorneys will pay off the outstanding balance at their closing but forget to send a close out letter to the equity line lender. If this is not done, some borrowers will take advantage of the additional funds available to them and “run” the equity line balance back up. You must obtain a close out letter signed by the borrower and send it along with your payoff check. If you are wiring funds, you must fax and FedEx the close out letter so you have a record of it. Finally, you must follow up to make sure that the equity line gets cancelled of record.
If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at 866-752-4445.
