What is the name of your state? New York.
I purchased several investment properties, at the time of the closings a party who was integral in the location of the properties and negotiating with the previous owner, but was not a licensed real estate agent, lawyer or acting with my consent nor did he disclose what he was doing, was giving the settlement agent a list of individuals and businesses to cut checks to out of the proceeds of the mortgages that was intended for me (the buyer) to do repairs and rehab work to guarantee the porperties would be worth the money loaned.
I had no knowledge of this activity, and ultimately have gone into debt and then bankruptcy...losing all 15 of the investment properties, destroying my credit and losing tens of thousands of dollars, that i invested into the properties. My question: are the closing agent (signatory of the checks) and the disbursement agent (cut the checks without my knowledge) and their employer liable for damages to my credit etc....?
Shouldn't a settlement agency and title company (which is what this was) have permission from the buyer/mortgage holder to distribute any funds that are not indicated on the HUD, and if they cut checks at the direction of a party that is not a principal in the real estate transaction and ultimately cause financial ruin for the mortgage holder ...shouldn't they be held liable?
Can I sue them for damages?
Also,,the disbursment clerk and the signatory are related (mother and daughter) and they went to work for the Individual who was giving them the list of unauthorized parties to receive the funds, that belonged to the bank and myself..., after leaving the first title company...then when they operated a title company for the individual with the list...they did the same thing with the last two buildings I bought....
I discovered this all during my bankruptcy proceedings....
I purchased several investment properties, at the time of the closings a party who was integral in the location of the properties and negotiating with the previous owner, but was not a licensed real estate agent, lawyer or acting with my consent nor did he disclose what he was doing, was giving the settlement agent a list of individuals and businesses to cut checks to out of the proceeds of the mortgages that was intended for me (the buyer) to do repairs and rehab work to guarantee the porperties would be worth the money loaned.
I had no knowledge of this activity, and ultimately have gone into debt and then bankruptcy...losing all 15 of the investment properties, destroying my credit and losing tens of thousands of dollars, that i invested into the properties. My question: are the closing agent (signatory of the checks) and the disbursement agent (cut the checks without my knowledge) and their employer liable for damages to my credit etc....?
Shouldn't a settlement agency and title company (which is what this was) have permission from the buyer/mortgage holder to distribute any funds that are not indicated on the HUD, and if they cut checks at the direction of a party that is not a principal in the real estate transaction and ultimately cause financial ruin for the mortgage holder ...shouldn't they be held liable?
Can I sue them for damages?
Also,,the disbursment clerk and the signatory are related (mother and daughter) and they went to work for the Individual who was giving them the list of unauthorized parties to receive the funds, that belonged to the bank and myself..., after leaving the first title company...then when they operated a title company for the individual with the list...they did the same thing with the last two buildings I bought....
I discovered this all during my bankruptcy proceedings....
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