Homeowners' Bills Left Unpaid After Escrow Company Closes

INDIANAPOLIS -- A Chicago-based escrow company has left dozens of Indiana homeowners behind on their bills after its sudden closure.

American Escrow plans to officially close on Tuesday, but 76 homeowners in Boone, Johnson, Hancock and Marion counties have had to deal with late fees after their property tax and insurance bills were not paid, Call 6's Rafael Sanchez reported.

Mitzi Noblet found out American Escrow hadn't paid her bills when she called about another matter. She said her escrow fund should contain $2,300, but the company told her the money isn't there.

"It's scary that I was delinquent and I didn't even know about it," Noblet said. "And then late charges were being applied and now I'm responsible for that."

The Noblets paid their property tax bill one more time, along with the accompanying $142 in fees. Then they went to the Marion County Treasurer's Office, where officials agreed to waive all penalties for American Escrow customers.

They said this is a situation they haven't had to deal with in recent history.

"It's never occurred before. I was checking with people who've worked here for quite awhile, and at least in 20 years there's never been this kind of a situation come up," said Marion County Treasurer Chief Deputy Tom Creasser.

The Noblets' mortgage company had required them to use American Escrow, but with proof of homeowners insurance every year, they will be able to pay their tax bill directly without using another escrow service.

Calls to American Escrow on Monday were referred to the company's attorney, who had not responded Monday afternoon.

More Information:

File A Complaint With The Indiana Attorney General's Office

File A Complaint With The Illinois Attorney General's Office