Skip to comments.Here It Comes: Title Insurance Problems
Posted on 09/30/2010 10:26:19 PM PDT by Future Useless Eater
Would you buy a foreclosed house if you could NOT get title insurance? or even COULD you buy it?
ping to read replies later
Hi Apple! I haven’t seen you around in ages. I, too, want to read the replies to this thread.
Buyer can apply for a mortgage, provide a survey, and have a title search done and title company will insure the mortgage if there's no problem. It's just procedural.
But a quitclaim deed only transfers the interest that the transferor “claims” to have. There is no warrantee of...anything, really.
If this gets going, I seriously doubt we will see title cos eager to insure quitclaim (or any other type) of deeds where title can be shown to have passed through the hands of suspect entities over the past few years.
Denninger is right....this is potentially a s**tstorm of epic proportions. IMO.
Anyone here who DIDN’T know this was coming, raise your hand!
November can’t come to soon for me!
JP Morgan Chase told CNBC on Wednesday that it will delay more than 56,000 foreclosure proceedings due to paperwork that was signed, "without the signer personally having reviewed those files."
This is a serious problem that will likely require state level remedial legislation.
I used to drive the mortgage brokers crazy by actually reading the documents at a signing. "Nobody does that." "That" was nearly 20 years ago. I can only imagine...
20 years ago, closing on the house I am in now, I read all the documents (or tried to!) with one of the realtors constantly piping up with irrelevant comments. That woman could not stand a moment of silence...I had to keep stopping to give her the evil eye, so that I could read the papers I was putting my signature to.
And even at that the lawyer had messed it up. He had to go back months later and file corrections, I forget exactly what.
Mine too. They had blown the interest rate and given me a rate a full point lower than that upon which we had agreed. Of course, anything I signed was binding on me, while anything they wrote that I signed they could change within three days.
We're within sight of owning our home, and do I ever want to burn that piece of paper.
Finished up that mortgage last year. Now all that is left is the annual "rent" charged by the lord of the manor (property tax).
Meanwhile, I still have all my mortgage statements, etc. I take them out every so often to gloat, anticipating a merry bonfire once I tire of it.
Sorry, this seems like much ado about very little. It appears that the banks have been trying to save some expense by “mass-producing” foreclosures. These errors are very minor and can be easily corrected. The foreclosure process will slow down, expenses will go up for foreclosing lenders (maybe in a few cases the expense may even make foreclosing uneconomical), and some lenders may have to pay damages for not following required foreclosure procedures; but there will be no massive land-title problems.
these are not minor problems in foreclosure.
It is like the black knight saying “tis but a scratch” (no appologies to monty python)
you want a warrenty deed not a quit claim deed.
The next step is to have suits to “quiet title” and extinguish all claims.
We need a total reboot of mortages. Banks have been paid off. The only losers will be the mills.
so the banks will announce that SOMEONE has now actually “read” the documents.
IOW the signor in Ohio is not notorized by someone sitting in texas.
It does not matter because judges are ignoring the law anyways.
There is no senile old judge insurance.
1. Minor paperwork issues that slow down the foreclosures by a few months at most.
2. Major Paperwork problems that leave the bank, city/county, and Homeowners fighting over the title for years, and will impact the value of the property for 7-10 years at a minimum. I am talking about those properties where you have two or more banks trying to foreclose on the same house, multiple tax liens, and abandonment.
Quit claims occur for different reasons.
Lawsuits are not involved in these matters.
You're guessing and you're not even close.
The real property title insurance business is driven by a combination of abstract legal doctrines and prudential considerations. For title insurers, even a remote legal vulnerability can be a severe insurance risk if a large class of policies are subject to it. A single court decision that reopened foreclosures across the state could put the insurers on the hook to provide a lawyer to pay damages or clear and defend property title for many thousands of title insurance holders.
Funny story for me, years ago, I was doing a refi. Set my appointment up for 1PM as I did not want to get caught in commute traffic from Dallas. I cooled my heals in the waiting room till after 3, when the closer came back from a long lunch. The embarrassed receptionist pointed to me and said, your 1PM is waiting for you. She said no problem this will only take a few minutes to do while casting an annoyed look at her for noting she was late. She came back with my closing file and we went into a conference room. That was when I put on my reading glasses to read every word and took out my calculator to check every calculation. I did find a math error which she had to fix herself as the staff had left! She kept babbling this is not necessary as any mistake will be fixed under the law that allows for that. We finished after 7PM. When I departed, I said I hope you enjoyed your lunch and have a nice late dinner date!
this could become a big mess
When I bought my first house in the early 90’s I had to sign 5 documents at the bank to close. When I bought my current house in 2001 my hand got cramps from all the signing required...
You so ba-a-a-ad....
(GMAC / Ally), (JpMorgan / Chase), and BofA.
Wells has been demanding releases from its buyers for title defects - so now by refusing to allow things to settle out in order to complete a short sale the buyer has to take a potentially-clouded or even unmarketable title for which they will have NO RECOURSE.http://market-ticker.org/akcs-www?post=168041
If you're doing business with Wells in any capacity at this point, you are, in my opinion, dumber than a box-o-rocks.
didn’t they also all take TARP $ ?
I believe US Bank was one that refused.
they first have to show “standing”. if they can’t do that, they have no right to be in the courthouse. hint: most of them can’t prove standing.