Funder goofed (and my $$ is in limbo)

[girlmidgard]

What is the name of your state?What is the name of your state?What is the name of your state?What is the name of your state?California
Am in process of trying to close the loan-of death. Escrow initially opened title with their usual Co., and 3 weeks ago, I had them cancel and re-open with my old company (used to work there and got huge fee discount). Clean title BTW, this loan was a slam-dunk. Paper trail shows that broker and funder did receive prelim from new title co., but for whatever reason, when funding my loan on Tuesday, they wired my $$ to the 1st Co. (aka: the wrong co.)
Having worked in the biz, I know wrong Co. could've just refused the wire and sent it back to the Lender who then would've figured out that it needed to go to Title Co. #2. Boom. Done. 1st title co. refused to wire $$ back to lender without instructions from them saying it was OK. Their file was cancelled, why would they hold on to money that they couldn't process?? Funder said no (said funder is scrambling this whole time shredding all evidence of her F-up). Made a huge deal out of page 2 of Deed having Co. #1 as trustee and said all would have to be redrawn to fix three words. I know they simply could've fixed or reprinted that page, had me sign or initial and boom, done. Funder said no, so in order to just frickin' get it done, I offered to drive to title Co. #2 and pick up my deed and subordination agreement (recording docs) and take them to Co. #1, and pay them full fare to just finish with it. To my extreme & utter stupification, I learn that title co #2 had released my docs for recording Wed. AM, with no funds receipted in!! (their payoff dept. had also called escrow to see if they could pay my taxes..warm bodies, one and all). The lender who wired out incorrectly is now saying the only way they'll fix this is to reconvey the new deed off, have me sign a new deed and I'm thinking...who teaches these idiots? Where is my $$ that has been accruing interest since Tuesday? Will reconveyance of that deed not open a completely unnecessary can of worms by making my subordinated loan in 1st position again, and hence require an new subordination? (subordinator is unwilling to do another). Will this not start my recission period over again? Won't I have to backdate and do all manner f illegal crap to make this all work? Please tell me why, as this useless lending co. cannot, why they couldn't recall my funds and re-direct them, or since the deed was recorded, why they couldnt correct the already recorded deed page Trustee upon getting it back from recorder's office, have me re-acknowledge it and re-record it? Boom and boom and done again!?!? And yes, it was a cash out loan and MUCH was riding on my having the funds by week-end. Thanks for the shoulder and any legal reasoning that might help me understand this crappy deal. I've done nothing wrong except to try to save on title fees. I don't want to sue, just want the funds in my hands instead of the wrong title co.s trust account. Am I completely wrong in my assumptions of correction?

 

[MortgageGuru]

Title co.#1 simply needs the authroity to release the funds back to the lender. The lender's funding agent should've jumped on that. Take your cues from that person. As for the recission period, it depends on the lender. Compliance with the law is more important and if there is any risk of misinterpreting it the lender will choose to err on the side of caution.

 

[girlmidgard]

Whew! I had finished my note here, and in a blind and angry panic sent pretty much the same one to the corporate offices of the Lender. The funder on this deal who had made the initial boo-boo was trying to cover her tracks and hadn't told anyone what was going on. She refused to talk to me due to Broker/Lender thing, and the only person in the Broker's office who would've listened to me, believe my fix-it scenario and at least gone to bat for me with a manager at the lender's end... was in Hawaii. All others said they had to go by the Funder's directives. I asked: what if I know for fact she's an idiot, and that her fix would end up in lawsuits for all? (so frustrating when you KNOW you're right and those who need to listen just refuse). The last word I'd been given was that my funds were still at the wrong Title Co., and that they'd been initially given written instruction by this funder to return the wire....then she phoned and told them "keep it there, this is a redraw". (There is a mandatory 72 hour thing for holding funds, but on the lender's instructions, it says if recording docs aren't recorded in 72...what if the wrong co had frickin' dropped them in to record?) This Funder from Hell was ordering a Sub & recon to undo the deed. Dear GAWD!! I finally took the bull by the horns and begged the 1st title co.s Officer holding my funds to re-open my file, charge me anything she desired and using copies of the recorded-by-other-title-co docs, agree to issue the insurance. She had everything anyhow as I changed title co.s late into the deal. No payoffs, no recordings...just take your fees and wire out the rest. Bless her heart, she got indemnification from the other Title Co, and BOOM....DONE. As soon as everyone was in agreement, whom do you think I received a call from???? Ah, yes, the FUNDING MANAGER from the corporate offices for the lender. "So terribly sorry....you were completely right your method of correction of the error and in notifying us..." She had already called the T.O to OK releasing my funds.
It seems the oh so knowledgeable idiot funder had left early the day before and didn't bother working on Friday. She had notified NO ONE of the mess she'd left with mine and who knows which other fundings. The Corp. Mgr said "I don't know WHERE her head was". I kid you not. Such a nightmare to facilitate getting my funds in time to get them in the bank, without holds, so that I could do my long-planned very important once in a lifetime business opportunity this AM (cash deal). But it's done. Huzzah! And no, the lender did not authorize a credit for the 3 days of interest I paid for money I only got after telling them all how to do their frickin' jobs. NEVER AGAIN! BTW, upon search-engining for the lender's corporate email/website, #3 in the list was a link to a site titled __________<lender's nameSUCKS.com. I could tell them a story, yes indeed..............