Escrow Firm’s Seizure Fuels Anxiety : Investigation: A conservator is studying finances of Fountain Valley-based Huntington. Officials say customers’ funds are protected by state insurance.

News that a respected escrow company in Fountain Valley mysteriously closed Monday then, two days later, was seized by government regulators has left hundreds of customers worried about whether they will ever see their money again.

“Our phone . . . has been ringing off the hook,” said Sgt. Darryl Nance, spokesman for the Fountain Valley Police Department, which is investigating the case involving Huntington Escrow Service Inc.

But the frantic callers can take some comfort in the probability that their funds will eventually be returned by state-required insurance, if not by the company itself. However, people who had deposited funds with the firm’s affiliate--a real estate exchange company--do not enjoy the same protection.

Huntington Escrow, used by real estate firms across Fountain Valley and Huntington Beach, was taken over by the state Department of Corporations after the abrupt closure. The state agency, which licenses and oversees escrow companies, appointed a conservator to look into Huntington Escrow’s finances.

“As far as we can tell, there have been no irregularities,” said Thomas Sayles, a commissioner in the department’s Los Angeles office. “The conservator will see if there are adequate funds in the company. We are hopeful there will be minimum inconvenience to those people in escrow.”

If the conservator finds that money is still available in the company’s trust funds, he will appoint another escrow company to hold the deposits, Sayles said.

An escrow company acts as an intermediary between a prospective buyer and seller in a real estate transaction, holding their funds until the sale is complete.

In California, independent escrow companies are required to be members of the Escrow Agents Fidelity Corp., which guarantees customers’ money.

Huntington Escrow’s owner, RoseMarie Sines, is president of affiliate Exchanged Titles Inc., an escrow service for tax-free real estate exchanges. Such companies are not regulated by the state or federal government.

Sines could not be reached for comment Thursday.

“Huntington Escrow was a fixture in the community for many years. It was very well respected,” said James Righeimer, a real estate broker with ERA Rafferty & Lloyd in Fountain Valley.

Sayles said that the conservator should know by early next week the financial standing of Huntington Escrow. Customers wanting more information can reach the conservator, Russ Greenwood, at (310) 544-7781.