Home Sales On Hold As State Investigates Title Company

INDIANAPOLIS -- Hundreds of home sales have been put on hold as the state investigates a central Indiana-based title company that had a key role in the reselling of many government-owned homes.

State regulators are investigating a possible mismanagement of funds by Village Title, Call 6's Rafael Sanchez reported.

The company’s principal owner -- Brandy Marie Foltz -- had her state license suspended for 90 days after officials with the Department of Insurance said a subpoena to allow the agency to review her financial books went unanswered.

"It is unordinary and extraordinary that we would have to go to these lengths to get cooperation of a title agent," said department spokeswoman Carol Mihalik.

A majority of foreclosed homes that are held by the Indiana Department of Housing and Urban Development and resold go through Village Title, which has offices in Indianapolis and Carmel, Sanchez reported.

The company's current issues have put the closings of 379 homes in jeopardy. Some people may have to pay a $375 fee to get a closing extension in hopes that the matter can be resolved within the next 15 days.

"Some of these people could end up being homeless if they don't have a place to live, if they've already turned in notices to their apartments or their landlords expecting to move into this house," said John Allee, the co-owner of Indiana Central Homes.

Former employees told Sanchez they're heartsick to see what's happening to their customers.

"There was always a constant robbing Peter to pay Paul. Basically, waiting one wire to hit before you could wire cut another one," said Sascha Escue. "We wanted customers to be closed. If we could have done something to avoid this, we would have done it."

David Pumphrey, an attorney for Village Title, told Sanchez that the company is cooperating with the state. He said Village Title is a legitimate company and that Foltz has ties to the community.

A meeting between Village Title officials and the Department of Insurance is scheduled for Wednesday.

Customers who have a Village Title complaint were asked to call the Department of Insurance at 317-234-5153.