Friday, May 17, 2013

RIGHT FREAKING ON. You GO Rep. Kelly. Well said.

GOP Congressman Mike Kelly Receives Standing Ovation After He Rips IRS Commissioner

REP. MIKE KELLY (R-PA): This has nothing to do with political parties. This has to do with highly targeted groups. This reconfirms everything the American public believes. This is a huge blow to the faith and trust that the American people have in their government. Is there any limit to the scope where you folks can go? Is there anything at all? Is there any way that we could ask you is there any question that you should have asked?

My goodness. How much money do you have in your wallet? Who do you get emails from? Whose sign do you put up in your front yard? This is a tax question? And you don't think that's intimidating? It's sure as hell intimidating. And I don't know that I got any answers from you today. And I don't know that -- what Mr. George said is great work -- but you know what? There's a heck of a lot more that has to come out in this. Any anybody that sat here today and listened to what you had to say, I am more concerned today than I was before, and the fact that you all can do just about anything you want to anybody? 

You know, you can put anybody out of business that you want. Any time you want. I gotta tell you. You could talk about how you're a horribly run organization, if you're on the other side of the fence, you're not giving that excuse. And the IRS comes in, you're not allowed to be shoddy, you're not allowed to be run horribly, you're not allowed to make mistakes, you're not allowed to do one damn thing that doesn't come in compliance, and if you do, you're held responsible right then. I just think the American people have seen what's going on right now in their government. This is absolutely an overreach and this is an outrage for all Americans

Wednesday, May 15, 2013

consumers - PLEASE - do not invest money into a house before you get the title insurance commitment

We had a title order come in.  The transaction had been moving forward to closing and suddenly they remembered to order title insurance.  The order came in with the request to set up closing as soon as we could.

When the abstract arrived I hoped for a nice clean title so these folks could have a fast closing.  What I saw when I opened the report was a foreclosure in process and numerous state and federal liens and judgments related to a business failure.

What were these folks thinking?  This isn't a title that can be rushed to close.

Wait - I tallied up the liens and even without payoff figures in hand the total was far more than the agreed sale price.

I called the listing agent and found that the seller had no idea that personal judgments and liens would attach. They thought all they had to worry about was the mortgage.

I called the buyer and got a very disappointing report.  The buyer has been living in a mobile home on a rented lot.  They have already sold the mobile home and given notice to vacate the lot by the end of this month.  In addition, they have invested $2000 in this property by making numerous repairs.  They say the sellers wanted a fast closing and the real estate agents had pushed them to make the repairs as quickly as possible to clear municipal hurdles prior to closing.

Neither the real estate agent or the mortgage loan officer suggested to the consumer that they wait for the title insurance commitment.

Why would everyone ASSUME that the title to the property is clear if no one checked?

I had to tell a tearful and angry buyer to make arrangements for another place to live at the end of the month.  It will take time but we'll see how the payoffs come in and whether this transaction can be saved.  In the meantime, the foreclosure process is moving forward quickly.

Our consumers, the buyers, are in a quandary.  Should they just move on and find a different house?  Will they ever recoup the $2000 they sunk into this house? Maybe they should wait for the liens to be divested by foreclosure and buy the house later, eh?  Do they want to live with their parents for all that time?

All of this could have been avoided if the consumers were thinking for themselves and told the real estate agents to back off and wait for the title insurance commitment.

FOLKS.  Please be a savvy consumer.  Don't sell the house you live in before you are sure you have another place to go.  Don't put money into a house you don't own unless ALL contingencies have been eliminated and you have a full disclosure on the situation.

Monday, May 06, 2013

satisfying privately held mortgages....gotta watch it!

Hi Diane,

I was reading your blog and wondered if you could answer a question.  I purchased a townhouse in 2005 (in Maryland), and the owner held the mortgage.  In 2006 I refinanced, using the same title company I used in 2005.  In 2009 I again refinanced, using a 2nd title company.  I am in the process of refinancing and it has come to light that neither title companies cleared the lien when I refinanced in 2006 - it still shows that the owner has a lien although that was paid in 2006.  I purchased an owners title policy as well as a lender's policy when I bought the home in 2005.  Will this help me to clear the lien, and am I entitled to anything for the anxiety this is causing me (seems I should be able to recoup what I paid 2 title companies to do but which they didn’t do)?  My current refinance company suggested just getting the last owner to sign off, but she retired and moved out of Maryland 7 years ago – I have no idea where she is now.

Thank you for any information you can give me.


Hi, N:  Wow, crappy title agents in the two previous refinances!  You are in a pickle as the owner policy won't cover it.  I can only think of four courses of action.

1.  Hire an attorney to try to find the mortgagee - prior owner - and get her to sign a satisfaction.  With the internet, it is usually pretty easy to find people.  I like to use Super Pages "find people"  - it works pretty well is they have a land line.  Anyway, if the attorney can't find her, he can file a quiet title action to remove the mortgage.

2.  Discuss with your attorney options to sue the two title agents who missed the lien.  Even though title insurance doesn't cover it, their professional liability coverage may.

3.  Report both title agencies to the state insurance department and attorney general and CFPB.  They serve consumers and these entities will want to know that they aren't doing such a great job.  They may even compel them to help you.

4. Notify your current lender that they are NOT in first position.  They may put pressure on the last title insurance company to fix the problem.

I'm afraid your plans to refinance are on hold for now.  Good luck!