Legal Question in Real Estate Law in Ohio
Escrow check sent and cashed to wrong owner
I was divorced August 10, 2000 and in the divorec decree I was awarded the residence. A quick claim deed was signed over to me and I refinanced the home into my name August 16, 2001. My ex-husband called the mortgage company and had the escrow check mailed to his address without my knowlege. The escrow check was issued to both of us because I was refinancing. He then signed his name alone and cashed the check. I am wanting to take this to small claims court, I have all the documentation including the the returned check with his signature.
My question is this: Even though he signed a quick claim deed and awarded me the property prior to this incidence to I have ground for legal action?
1 Answer from Attorneys
Re: Escrow check sent and cashed to wrong owner
On its face you appear to have a cause of action against both your ex-husband and the mortgage company who drew the check payable to both you and your husband. As to your husband, the argument is that as you were awarded the residence and were refinancing, the escrow monies should have been placed on deposit with the new lender to offset its escrow requirements at closing. Further, your husband no longer had an interest in the residence and that included the tax and insurance escrow which were there for property taxes and homeowner's insurance. As far as your prior lender goes, it should have determined that as the check was not endorsed by both of you that the bank that paid your exhusband owed the money to the lender for falsely accepting an improperly endorsed check. The lender still owes the escrow money to you and in failing to properly pay it over to you may be guilty of conversion and other causes of action.
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