Dozens of Atlanta-area real estate closing attorneys are scrambling after receiving $20 million or more in bounced checks last month from HomeBanc Mortgage Corp. Although Georgia law requires lawyers to wait until checks have cleared before closing a mortgage, in practice most real estate closing attorneys don't wait for the money to clear, instead closing when they have a check in hand. Now, some attorneys face possible bar violations, and are digging into personal accounts to cover HomeBanc's mistake.
August 16, 2007 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
John K. Haley, a real estate closing attorney in Buford, Ga., left work July 31 thinking the HomeBanc mortgages he’d closed earlier that day had cleared.
That turned out not to be true. Haley was one of dozens of Atlanta-area real estate closing attorneys who received bounced checks last month from HomeBanc Mortgage Corp. Lawyers estimate HomeBanc may have issued $20 million or more in bounced checks July 30 and July 31. HomeBanc filed for Chapter 11 bankruptcy protection Aug. 9.
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