Friday, March 25, 2011

almost forgot to share this closing adventure

We've all got crazy closing stories, right?  Well, the other night we had an in office closing set for 5pm.  Folks started arriving a few minutes early just as our severe weather warning siren started blowing.  As the buyers walked in they got a call from a friend who was at the Walmart about 8 miles away.  They had been instructed to get on the floor and away from the windows.  A tornado was on the way.

Here's a picture shared by a reader.  That's Route 30.

Anyway, the storm was on the way, so everybody went to the basement.  Three of us stood in the bathroom while Tracey closed the transaction on a folding table.  The storm passed over high enough that we didn't suffer wind damage in our town.  Hempfield Township wasn't as lucky.

We were pelted with HUGE hail and everyone's cars are dented all over.  Here's one of the big ones Wendy picked up by the high school.

We can live with that, eh?  ;)

Thursday, March 24, 2011

getting back to the REO transaction and the odd POA scenario

It hits me that this attorney isn't even in touch with the principal on the POA.  According to her the REO company may not even have current contacts for that company.  This attorney is apparently throwing darts at the public record trying to find a POA that might fit her transaction.  What the hey?

The vested lender is vested on the sheriff's deed because the foreclosure attorney filed an assignment into their name during foreclosure.  Now they want to move the paper to another lender so that lender can convey to my buyer.

In the meantime, after doing a bit of research I was able to contact the VP how signed the POA we have in hand.  It will be interesting to see how this plays out.

Tuesday, March 22, 2011

Here's a different approach ...affiliate as "single person"

NAILTA supports the FRB's definition of the term "affiliate" as a "single person" for the purposes of the Rule.
An AfBA, according to NAILTA's view, is a single entity and, accordingly, should be subject to the "single person" compensation requirements. Indeed, the trade associations refer to the "affiliate" as a "one-stop" shop.
Therefore, treating them differently for purposes of the Rule "ignores their own intent—a single location for all real estate settlement services."

Read more on National Mortgage Professional.

Saturday, March 19, 2011

Facebook connections continue to evolve...

"It is great to see that the courts are willing to embrace new technology," says a British lawyer given permission to serve a summons to a difficult-to-reach debtor via Facebook.

Source techPresident.'s a morning chuckle or maybe not - just pretend it's a Monty Python short

You be the judge.

What follows is a transcript of the deposition of Lawrence Patterson, acting head of information technology for the recorder's division of the county fiscal office. The questioner is attorney David Marburger, who filed the lawsuit on behalf of title companies. Another attorney, Matthew Cavanagh, represents the county and raises objections.

Read more on Cleveland.

Thanks to techPresident for the lead.

Are we on Candid Camera?

You be the judge.

What follows is a transcript of the deposition of Lawrence Patterson, acting head of information technology for the recorder's division of the county fiscal office. The questioner is attorney David Marburger, who filed the lawsuit on behalf of title companies. Another attorney, Matthew Cavanagh, represents the county and raises objections.

Read more on Cleveland.

Friday, March 18, 2011

just another day processing REO transactions....

notes for file

The lender's attorney agreed that the 2nd POA she submitted does not cover our transaction.  Our underlying mortgage is NOT part of that servicing agreement.

She wants to make an argument that the first POA she submitted can be used even though it does not specify power to sign a deed.  I disagree but said she can put her argument in writing and I will submit it to our underwriting attorney for a decision.

She expressed frustration that we were requiring an original or court certified POA because they will take time to get.  I think she is in some kind of meltdown because these are normal procedures and she's being illogical.  She may just be having a bad day.

If the buyer asks about delays, just let them know we are taking steps to make certain their title is good and marketable.

Fidelity sends more jobs out of the USA

BANGALORE: The world's largest property title insurance company Fidelity National Financial (FNF) will increase its headcount in India this year as it transfers more work from the US to its captive centre in Bangalore.

Read more on The Times of India.

Monday, March 07, 2011

subdivisions, outsales and foreclosure

TWO....TWO cases in one week with the same situation, well almost.

I've had two transactions cross my desk in one week that involve subdivision, sale of a portion of a mortgaged parcel which later went into foreclosure.  In both cases, the attorneys who handled the subdivisions and conveyance out of the mortgaged parcel overlooked getting a release from the mortgagee.  What were they thinking!

In one case, the foreclosure is over.  The foreclosing attorney didn't notice the outsale and so no notice was given to the owner of the outsale parcel.  I discussed it with my underwriter who raised three issues.  He wanted the outsale to have its own tax assessment identification.  It does.  He wanted the new mortgage lender to have given the outsale no value in the appraisal.  It's a cash deal, so no lender.  He wanted us to make certain our proposed insured buyer was fully aware and agreed to an exception for the outsale.  We provided maps and surveys found on record.  The buyer visited the property one more time, no problem.  Now all I have to do is make certain an exception shows in the deed so our insured doesn't have complications moving forward.

In the other case, the foreclosure process has just begun and our transaction is a short sale.  If the short sale goes through and our buyer is fully aware of the outsale, I see no problem.  On the other hand if the short sale does not go through and the property does go to sheriff's sale, if the foreclosing attorney does their job correctly and gives notice to the outsale owner, they would have to go and outbid the lender at the sale in order to preserve their ownership in the parcel they acquired without having gotten a release from the mortgage lender.  I'll bet that'll be a big surprise.  The listing agent and I chatted about this today.  There's no sense telling the neighbor to go for a release now.  I can't see any motivation for the mortgage lender to consider it when the property is in foreclosure.

Remember folks, if you buy a piece of property, even is it's just a sliver from a neighbor, you had better insist upon full title examination by a competent provider.  In both of these cases, consumers relied upon attorneys who took shortcuts.  It is possible that they advised their clients of the risk of buying without a title examination, or perhaps not.

Be a smart consumer.  

Thursday, March 03, 2011

attention all PA title insurers...time to escheat!

April 15 is the deadline to report and deliver unclaimed property to the Pennsylvania Treasury.  Here are a few things to keep in mind as you prepare your company’s report:
  • All owner accounts with a last known address in Pennsylvania should be reported to the Pennsylvania Treasury.  Companies incorporated in Pennsylvania should report all “unknown” owner accounts to the Pennsylvania Treasury.
  • Reports can be filed prior to or on April 15; reports filed after April 15 may be subject to penalties.
  • The Pennsylvania Treasury requires holders to file electronically reports containing 10 or more owners – including reports for tangible property.  Visit for links to free reporting software tools.
  • Companies in possession of unclaimed property belonging to Pennsylvania residents must file an unclaimed property report.  It’s not an option, it’s the law!
  • Failure or refusal to file a report can result in an audit, penalties, or interest.
Treasury’s Web site,, contains a wealth of information about filing an unclaimed property report, including:  detailed instructions, free electronic reporting software, a copy of the Disposition of Abandoned and Unclaimed Property Law, and a list of frequently asked questions.
Treasury’s Unclaimed Property Compliance Team is available to assist you with any questions regarding your annual report.  Call 1-800-379-3999, Monday – Friday, 8:00 a.m. – 5:00 p.m. EST or email