State Severs Ties With Troubled Title Company

INDIANAPOLIS -- The state will no longer do business with a title company under investigation that had a key role in the reselling of many government-owned homes.

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

On Wednesday, officials with the Indiana Department of Housing and Urban Development said that the state was severing its ties with the company and that they would be seeking to contract with a new vendor by next week.

Village Title'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. The company's offices in Indianapolis and Carmel have since been closed.

A majority of foreclosed homes held by HUD went through the company, officials said, leaving close to 400 home sales in limbo.

"There's hundreds of people who purchased our housing. We want to close," said HUD spokesman Bill Shaw. "All I can tell them is to be patient. We are moving very quickly for government processes."

Foltz's attorney did not return 6News' call for comment on Wednesday.

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