Davenport, IA, March 21, 2012 --(PR.com
)-- Don Jackson, North South Title Vice-President, Consumer Relations said today that North South Title will step up its efforts to educate consumers about fraudulent practices in the escrow and title industry. North South Title is an independent escrow company located in Davenport, Iowa.
Over the last several years, the United States has made enormous progress in expanding access to capital for previously under served borrowers. Despite this progress, however, too many families are suffering today because of a growing incidence of abusive practices in a segment of the mortgage lending market. Predatory mortgage lending practices strip borrowers of home equity and threaten families with foreclosure, destabilizing the very communities that are beginning to enjoy the fruits of the nation’s economic success.
Escrow is a very special service in which delivery of a deed by a grantor (seller) to a third party (escrow officer) for delivery to the grantee (buyer) upon the happening of a contingent event. This usually means all instruments necessary to the sale (including funds) are delivered to a third (neutral) party, with instructions as to their use. As you can see, this service is the basis for the closing of a transaction. It is very important to all the parties involved. The title company with its escrow officers is required to be licensed and bonded in order to protect the public. Escrow officers play a major role in servicing the good and honest neutral party for a transaction between buyer and seller.
Placing money in escrow usually works to keep both parties to a transaction safe and ensure that the terms of the sale are fulfilled before money is released to the seller. Unfortunately, however, some people commit escrow fraud and use false escrow businesses or arrangements to steal money from unsuspecting parties. You may avoid escrow fraud by patronizing escrow companies like North South Title that have been in the business for years and have built a solid reputation. Walking away from deals in which a party insists on using a particular escrow company may work as well, especially if the escrow company isn't well known.
Another way to avoid escrow fraud is to be wary of sellers who are insistent on using one particular escrow service. For example, you may suggest a reputable service that you’ve researched and are sure is legitimate. If the seller insists on using a different service, especially one that you’ve never heard of, this may be a red flag that the seller is attempting to commit escrow fraud. In such a case you may do well to walk away from the transaction and look for a new seller.
Consumers who believe they have been a victim of predatory or scam practices have a variety of Federal agencies that they can turn to for help. "Nonetheless, it is far better that we educate consumers so that they can protect themselves before they are victimized," said Jackson.