What Chris Dodd, Barney Frank, and (since 2006) democRAT control of congress has done to our banks and economy.
Would you buy a foreclosed house if you could NOT get title insurance? or even COULD you buy it?
ping
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.
What Chris Dodd, Barney Frank, and (since 2006) democRAT control of congress has done to our banks and economy.Anyone here who DIDN’T know this was coming, raise your hand!
November can’t come to soon for me!
This is a serious problem that will likely require state level remedial legislation.
this could become a big mess
(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=168041If you're doing business with Wells in any capacity at this point, you are, in my opinion, dumber than a box-o-rocks.
Ok, here we go.
As The New York Times is reporting:
The company, Old Republic National Title Insurance, told its agents Friday that it would not write policies on foreclosed Chase properties until “the objectionable issues have been resolved,” according to a memorandum sent out by the firm’s underwriting department.
I have a copy of the original memo in which they said they would not insure GMAC/Ally mortgages earlier in the week. I declined to name Old Republic because despite trying to get them on the phone and verify the authenticity of the document, the person identified as the contact point for questions refused to talk to me - and so did both their corporate relations AND legal departments.
However, since The Times will run with it, the cat's out of the bag along with the name.
I expect Bank of America will be added to this list shortly.
Without title insurance you cannot get a loan for a property. And you're an idiot to buy even for cash without a Title policy. If there's a problem you could easily find out that you bought an empty box - and have nothing.
One other, and very-important point. Most title policies are rather complex. Even though there are several large title firms and even more small ones, DO NOT take the fact that one or more will offer a policy as an indication that "all is ok." This is not necessarily true.
DO NOT BUY ANY REAL ESTATE IN THIS ENVIRONMENT WITHOUT AN ATTORNEY OF YOUR OWN SELECTION GOING OVER ANY PROFFERED TITLE POLICY BEFORE YOU PAY FOR IT AND CLOSE THE TRANSACTION, AND GET THEM TO EXPLAIN EXACTLY WHAT EXCLUSIONS AND CONDITIONS ARE IN THAT POLICY. WHEN WRITING OFFERS MAKE SURE THAT THE AVAILABILITY OF A TITLE INSURANCE POLICY ACCEPTABLE TO YOU IS ONE OF THE CONDITIONS OF THE SALE AND DO NOT WAIVE IT UNDER ANY CIRCUMSTANCES PRIOR TO CLOSING.
SOME BANKS HAVE "CAPTIVE" TITLE COMPANIES, AND IT WOULD NOT SURPRISE ME ONE BIT TO FIND THAT THEY, AND TITLE INSURERS GENERALLY, ARE EXCLUDING SOME POSSIBLE LOSSES, LEAVING THEM WITH YOU, ESPECIALLY FOR OWNER'S TITLE POLICIES.
SUCH A "CARVE OUT", IF IT EXISTS, COULD LEAVE YOU WITH NO TITLE COVERAGE IF THERE IS A PROBLEM WITH A PREVIOUS SALE OR FORECLOSURE.
THIS COULD RESULT IN LOSS OF THE HOUSE AND ALL MONEY YOU SPENT ON IT.
...