Anyone reading this forum has likely felt acid reflux in response to reading the following scenario once again;
-Title company opens doors with flood of orders from paying customers.
-Abstractors are paid little if at all, usually just enough to keep the gravy train flowing.
-Title company closes doors once the word gets around.
-Principals and associated persons close one shop and open another in nearly simultaneous motion.
-Repeat from top.
The fees for abstracting services are ultimately borne by the borrower/homeowner in most circumstances, accounted for either on a settlement statement signed by the borrower, or a judgment of foreclosure signed by a judge. The money is taken from the borrower under the guise of a service essential to the property transaction, but in the end another American dollar is stuffed in the pocket of a greedy player, acting without regard to victims or consequences. We as abstractors may feel the biggest pinch when it occurs, but we aren't the only victims here. Like the big giants falling in the headlines today, scams of this sort further threaten the health of our banking system, economy and the public at large.
At what point is this more than just the problem of a company or two? Just a civil matter the government is disinterested in, or is there a greater public interest? Where can we as both an industry and a society keep track of those who put our system at risk by gaming it for short term gains? Forums like this are a great start when it comes to documentation, but this forum has no legal enforcement powers. One or two abstractors complaining about unpaid invoices...I doubt that would turn the eye of any state's Attorney General, but how about 12, 25, 50 or more? As the number approaches 100, we start hearing, "Why didn't you contact us sooner?" Few law enforcement agencies have wide enough jurisdiction to pick up on the big picture in such cases, and they will never know unless each of us individually report to them. Writing to the AG may be a Hail-Mary play, not to be taken lightly, it also could be our last chance to avoid the worst-possible outcome, over and over again, until there is nothing left in our industry to steal.
How can you compete when your competitor steals everything you work for?
Current market conditions make us abstractors a more vulnerable population to those who willingly choose to do business in bad faith. If this turns out to be the driveway re-paving scam of tomorrow, I think there would be exactly 50 Attorneys General wanting to get a jump on it. Considering the uncertain future many of America's largest companies face, investing in small businesses such as ours could be a very winning investment for officials so empowered...the following caught my eye:
-California Consumer Complaint Against A Business/Company
http://ag.ca.gov/contact/complaint_form.php?cmplt=CL
-Florida Economic Crimes Contact Form
http://myfloridalegal.com/Contact.nsf/Contact?OpenForm&Section=Economic_Crimes
-New York Investor Protection Bureau - Real Estate Financing Section
http://www.oag.state.ny.us/realestate/realestate.html
-Texas Complaint Form
http://www.oag.state.tx.us/consumer/complain.shtml
-Wisconsin Department of Financial Institutions Complaint Form
http://www.wdfi.org/contact_us/ComplaintDefault.htm
Depending on the government structure of any given state, an Insurance Commission, Banking Commission or Consumer Affairs Agency could be a more welcoming "front door". If any of the companies contacted you by email, or if they found your contact information from an online source, the Internet Crimes Division may be worth pursuing as well.
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