Help! Title Company not releasing funds!!!

[Paul Williams]

3 weeks ago I sold a house. Closing went well, and several days after closing I checked with the title company to see why I hadn't gotten the funds yet. They said they hadn't gotten a release of lien from a company that I paid off over 5 years ago. Before closing, the title company asked me for proof the note had been settled, which I provided. (Note, I settled the loan for less than the full balance and received a settled in full letter saying it had a zero balance- dated Aug 2011.) The title company decided before wiring over the money to me that the settlement letter didn't protect them to their satisfaction. They requested a release of lien from the lender, and the lender is saying it will take another 2+ weeks to issue the letter. That makes 5+ weeks total until I get my money from closing. The HUD showed I was getting a certain amount, and nothing was listed as needing to be settled from this lender. Can the title company hold my funds like this? Is it legal? Since I signed a HUD saying I would get a certain amount, can they pay me any less?

[Tyler Sterns]

The title company is not being unreasonable. You might want to call the lender yourself and see if there is anyway you can get the letter quicker.