It has come to our attention that there have been several recent instances of vandalism to, and/or straight-out thefts from, overnight courier drop boxes throughout the metropolitan area. While thankfully this has not directly impacted any of Home Abstract Corp.’s payoff deliveries, these events have resulted in payoff checks being diverted so that the intended recipient does not receive the payoff funds.
In addition to the accruing interest on the unpaid lien(s), we have been informed that the efforts to stop payment on Official Bank Checks and to replace those funds are extensive, time-consuming, and costly; all of which can lead to added stress and liability that neither you nor your clients need. While there is no way to remove all risk when mailing out payoffs, at this time, we are strongly recommending that, to the extent you are directly sending payoff funds to a creditor or lienor, you utilize a recognized overnight delivery service and only deposit your package with the courier at their local office (as opposed to using an unmonitored drop box). A receipt for the package should be obtained as proof that courier received the package, and you can request alerts from the carrier notifying you when your package is delivered. It is also recommended practice to follow up with the lender to confirm that the lien balance is $0.00 after the payoff funds have been received.
It is unfortunate that we have to protect against an ever-increasing number of schemes to misappropriate our clients’ funds, but as Benjamin Franklin once said, “An ounce of prevention is worth a pound of cure.”
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