Wednesday, July 28, 2010

The seller did his own title search and.....

he says someone at the courthouse did his deed for him.  Hmmmm....

Well, the prior vested owner was a man, we'll call John Smith.  Our seller's deed was from a woman who says she was Mrs. John Smith.  The deed says John Smith is dead and that Mrs. Smith owns the property by operation of law as having been his wife.

Well, that's wrong.  She wasn't in title so does our seller actually own the

The seller did his own title search and.....

he says someone at the courthouse did his deed for him.  Hmmmm....

Well, the prior vested owner was a man, we'll call John Smith.  Our seller's deed was from a woman who says she was Mrs. John Smith.  The deed says John Smith is dead and that Mrs. Smith owns the property by operation of law as having been his wife.

Well, that's wrong.  She wasn't in title so does our seller actually own the

Tuesday, July 27, 2010

just a note to say hello

Our two most interesting cases pending now are one involving a Power of Attorney for a buyer and another in which the neighbor stepped forward on the eve of closing to say the driveway is on his property.

Both are cases of info coming in really late in a transaction and so both are delayed while we work out solutions.


In the case of the Power of Attorney, the buyers told the loan officer that

just a note to say hello

Our two most interesting cases pending now are one involving a Power of Attorney for a buyer and another in which the neighbor stepped forward on the eve of closing to say the driveway is on his property.

Both are cases of info coming in really late in a transaction and so both are delayed while we work out solutions.


In the case of the Power of Attorney, the buyers told the loan officer that

Tuesday, July 13, 2010

you probably know by now how I feel about FICO scoring...

I'm not a fan.

I think FICO got us into this credit mess by creating and supporting the false belief that automated underwriting could replace expert human analysis and judgment.  Though developed as a tool, it replaced humanity in the lending process.  NOW, it's time to let go.

We don't have subprime lending.  It's basically gone.  Hard money lenders are few and difficult for consumers to

you probably know by now how I feel about FICO scoring...

I'm not a fan.

I think FICO got us into this credit mess by creating and supporting the false belief that automated underwriting could replace expert human analysis and judgment.  Though developed as a tool, it replaced humanity in the lending process.  NOW, it's time to let go.

We don't have subprime lending.  It's basically gone.  Hard money lenders are few and difficult for consumers to

helping a consumer deal with reality

Back in April we received a title insurance order for a vacant lot on which the buyer planned to build a new home.  It's a cash deal and it still has not closed.  Why?  Well, the seller didn't realize that he had a mortgage on this lot and now we are working through a long process of obtaining a release.

Why didn't the seller know about the mortgage?  Well, the purchase of the adjacent lot was

helping a consumer deal with reality

Back in April we received a title insurance order for a vacant lot on which the buyer planned to build a new home.  It's a cash deal and it still has not closed.  Why?  Well, the seller didn't realize that he had a mortgage on this lot and now we are working through a long process of obtaining a release.

Why didn't the seller know about the mortgage?  Well, the purchase of the adjacent lot was

I get a kick out of seeing Title Insurance Talk translated into a foreign language.

Last year I noticed a post had been translated into Vietnamese.  Last week I saw one translated into Spanish for a Chilean reader and then this morning I noticed another translated into Dutch for a Belgian reader.  Cool. ;)

I get a kick out of seeing Title Insurance Talk translated into a foreign language.

Last year I noticed a post had been translated into Vietnamese.  Last week I saw one translated into Spanish for a Chilean reader and then this morning I noticed another translated into Dutch for a Belgian reader.  Cool. ;)

Thursday, July 8, 2010

LOL....I'm sorry but this makes me laugh.

The vagueness of the individual factors is compounded by the subjective balancing process inherent in the test. HUD explains that the ten factors “will be considered together in determining whether the entity is a bona fide settlement service provider.” But HUD gives no indication how many factors might be determinative, or which factors might weigh more heavily in the analysis. Any entity

LOL....I'm sorry but this makes me laugh.

The vagueness of the individual factors is compounded by the subjective balancing process inherent in the test. HUD explains that the ten factors “will be considered together in determining whether the entity is a bona fide settlement service provider.” But HUD gives no indication how many factors might be determinative, or which factors might weigh more heavily in the analysis. Any entity

sham test unconstitutional?

The U.S. District Court, Northern District of Ohio, Western Division in Toledo, Ohio has issued a Memorandum and Opinion Order decided by Judge Jack Zouhary which holds that HUD's 10-Part Test to determine whether a controlled business arrangement is a sham entity or not is unconstitutional. The case is styled Erick Carter, et al. v. Welles-Bowen Realty, Inc., et al. and involves two

sham test unconstitutional?

The U.S. District Court, Northern District of Ohio, Western Division in Toledo, Ohio has issued a Memorandum and Opinion Order decided by Judge Jack Zouhary which holds that HUD's 10-Part Test to determine whether a controlled business arrangement is a sham entity or not is unconstitutional. The case is styled Erick Carter, et al. v. Welles-Bowen Realty, Inc., et al. and involves two
WILLIAMSPORT — A State College businessman who admitted embezzling $1.6 million while serving as an agent for Ticor Title Insurance Co., based in Philadelphia, has lost his bid to be given a sentence lighter than called for by sentencing guidelines.
In an opinion issued Friday, U.S. Middle District Senior Judge Malcolm Muir said while Ellery A. Crissman’s community activity may justify a
WILLIAMSPORT — A State College businessman who admitted embezzling $1.6 million while serving as an agent for Ticor Title Insurance Co., based in Philadelphia, has lost his bid to be given a sentence lighter than called for by sentencing guidelines.
In an opinion issued Friday, U.S. Middle District Senior Judge Malcolm Muir said while Ellery A. Crissman’s community activity may justify a

on support of TARP

Against lots of vocal opposition, I supported TARP.  This is why.  The assistance was necessary to stop a spiraling dynamic and prevent a banking disaster.  It was a carefully thought out plan with a way to recover funds when the danger was clear.

The unfortunate unintended consequence was that politicians across the nation saw it as a GO signal to borrow in previously unthinkable levels against

on support of TARP

Against lots of vocal opposition, I supported TARP.  This is why.  The assistance was necessary to stop a spiraling dynamic and prevent a banking disaster.  It was a carefully thought out plan with a way to recover funds when the danger was clear.

The unfortunate unintended consequence was that politicians across the nation saw it as a GO signal to borrow in previously unthinkable levels against

Wednesday, July 7, 2010

just got freaked out by a tax collector

If you live in a metro area or some other place of the country with professional tax collection, you just probably cannot believe how we collect property taxes in most of Pennsylvania.  Each municipality has an elected official in charge of the tax collection.  Many are part-time and work out of their homes.

I just got off the phone with a new tax collector who called because she could not match

just got freaked out by a tax collector

If you live in a metro area or some other place of the country with professional tax collection, you just probably cannot believe how we collect property taxes in most of Pennsylvania.  Each municipality has an elected official in charge of the tax collection.  Many are part-time and work out of their homes.

I just got off the phone with a new tax collector who called because she could not match

Tuesday, July 6, 2010

short sale lender wants buyer docs? why?

This is a first.  We just got a post closing request from a real estate broker for "a copy of the Note, Homeowners Insurance Dec Page and paid receipt, Approval letter from lender or and Amended approval Letter."

Say what?  Why?  What business are these personal buyer documents to the seller's mortgage lender?

Here's my response:

"To guard privacy, we release documents when requested by the

short sale lender wants buyer docs? why?

This is a first.  We just got a post closing request from a real estate broker for "a copy of the Note, Homeowners Insurance Dec Page and paid receipt, Approval letter from lender or and Amended approval Letter."

Say what?  Why?  What business are these personal buyer documents to the seller's mortgage lender?

Here's my response:

"To guard privacy, we release documents when requested by the

Sunday, July 4, 2010

query: title company will stop pay on refund check unless new HUD is signed

Interesting topic.  If you check the documents signed at closing you should find one or more in which you, the borrower in a mortgage transaction, agreed to cooperate and sign corrective documents as necessary.

If the title company has been charged by the mortgage lender or some other party to have a corrective HUD-1 signed and you are not cooperating, they may choose to use whatever means they

query: title company will stop pay on refund check unless new HUD is signed

Interesting topic.  If you check the documents signed at closing you should find one or more in which you, the borrower in a mortgage transaction, agreed to cooperate and sign corrective documents as necessary.

If the title company has been charged by the mortgage lender or some other party to have a corrective HUD-1 signed and you are not cooperating, they may choose to use whatever means they