It is sometimes a ploy of a financially challenged title company to claim that they have gone out of business or that the loan did not close. We have recently been confronted with such problems, but have managed to get paid in full notwithstanding. In those cases in which the title companies have claimed that the loan did not close, there is no defense for not paying, if the search order did not condition payment on the loan's closing. You are right that you will not be doing business with them in the future, but who needs this type of client?

In those cases in which the title company claims to have closed its doors, it is imperative that you act before the closing date to secure payment.If confronted with this scenario, you may want to indicate to the title company that you intend to go directly to the lender/disbusement agent to request direct payment of your fee. Funds are escrowed by the lender for the payment of your fee, and are held in trust by the disbursement agent until payment. If the funds have already been disbursed on the representation that your fee is to be paid, and someone else has pocketed the funds there may be a serious problen with bank fraud. This has become a serious criminal offense in recent years, and carries a severe criminal penalty. Recently saw someone convicted to 9 years in federal prison for an indictment claiming bank fraud among other offenses

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