As I mentioned in an earlier post I am currently buying a foreclosed property marketed by Hubzu.com The bank (Ocwen Loan Servicing LLC) has farmed out all the settlement processing to Altisource and Premium Title Services, both unknown (to me), out of state entities. They are expecting to conduct an “electronic settlement” via email where I will receive documents and electronically transfer funds (around $100K) to them. I am a little uneasy transferring large sums of money to institutions I am not familiar with and would have trouble even verifying their existence. Maybe I’m just being paranoid but that has worked out well for me so far.
Has anyone dealt with an “electronic settlement” or any of these players. I’m in the investigative stages of how this is supposed to work so I am not completely clueless when I go talk with my lawyer.
The closest we’ve come to a non-standard closing was for one house that we bought where the company sent a rep to our Realtor’s office and we closed it there vice our atty’s office. I think you’re wise to question it. Our closing went fine, but we had documents from the company showing a rep would come at the agreed time for the closing.
I’ve closed outside the title company before also but the title co was one I know and they sent a rep/notary and we closed at the buyer’s agent’s office. I’m just not knowledgable about “electronic settlement” and need to investigate any safeguards in place so my money does not fly away in cyberspace. I don’t want to be like the kids in the SouthPark episode … “aaaaannndddd it’s gone!”
I would talk to your local title company and see how to verify Altisource and Premium and make sure they are licensed/approved to do business in your state.
I would request a courtesy close at a local title company. Make sure you are getting title insurance with clear title and have your own attorney look over the closing documents.