United Title of TX goes out of business

July 30, 2008 3:55:29 PM PDT
Many Houston homeowners and home buyers are in limbo today. That's because one of the state's largest title companies has gone out of business. United Title of Texas abruptly shut its doors yesterday and put hundreds of closings in jeopardy.

So, what happens now, and what about the title company's employees?

A realtor out of Clear Lake, Priscilla Ennis is used to shakeups in the market, but this shakeup will likely mean some of her clients won't be selling their homes anytime soon.

"I think it could delay it, but hopefully not too long," she said.

On Tuesday the parent company of United Title of Texas announced to its employees that it was shutting down, meaning any contracts set for closing were now in flux.

Ennis has six open contracts. She worries what that will mean for her homeowners.

"I feel bad for anybody that isn't able to close when they were planning to," she said.

The move isn't only causing headaches for homeowners. The company has had to let go all of its Texas employees.

Trent Bailey found out last night he was now without a job. What's worse for him is that he has been given no resources to answer his clients' questions.

"Not only are we unemployed, our clients are let down and their clients of course are let down," Bailey said.

Experts say realtors can transfer their contracts to a new title company, but that will mean the mortgage lender will have to redraw the documents. On top of that, any earnest money already sent to United may take awhile to recoup ? basically, an overall delay.

"So this person who has a moving truck in front of their current place is not going to get to move into their new home until an undisclosed amount of time," realtor Becky Ellis said.

According to the company's website, United Title of Texas is one of the largest title companies in America. It is comprised of 577 branches and 6200 employees.

In Texas, the company was known for its growth. Today, however, that has apparently come to an end.

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