Zillow.com, home of the Zestimate, Zillow Mortgage Marketplace, and many other online real estate resources, yesterday launched a "Ratings and Reviews" system for real estate professionals.
This new tool will allow consumers to review and rate real estate agents with whom they've previously worked. Zillow believes this will help potential buyers and sellers in selecting an agent that fits their individual needs, AND will help great real estate agents. Details on the program (with a TON of commentary) can be found here.
What do you think? Is this good for the industry? Good for consumers? For agents?
Friday, December 3, 2010
Thursday, December 2, 2010
What should you ask your title company?
Congratulations! You have a ratified contract. Your buyers have signed on the line which is dotted. Your job is done, right?
Wrong.
Not true in any market, much less this one. Now comes the fun part - navigating from contract signing to settlement. An integral part of this process is selecting the title company.
So, how do you pick a title company? Likely you know someone and/or have worked with someone in the past. You have a relationship with them. And like all business, relationships are what drive this business. But let's say you are testing a new company out or want to dig a little deeper to see what is behind that friendly, helpful closing attorney?
Here are some great questions to ask which should help frame your decision:
1. What are your fees? All of them. No one likes hidden fees that do not pop up until the final HUD-1 is presented at the table. Ask your title rep for a fee schedule, or better yet, get the fees for your particular transaction. This can be done manually or via a web-based application, like ours.
2. When do you order the title search? This is the question which prompted this post. Some title companies wait until they hear the appraisal is back before ordering title. Why? It costs money to order title. See here what goes into a title search. However, I would insist that your title company order the search the day you hand over the contract. It's too important to wait. Otherwise, last minute title issues could arise that could have been addressed earlier.
3. How often is your escrow or trust account reconciled? Escrow/trust accounts should be reconciled monthly, no exceptions. If not, a shortage could exist which could come back and haunt your buyer should the title company find itself insolvent.
4. How many title insurance companies do you write for? This is a particularly interesting question today, and here's why it is important: title underwriters, like loan underwriters, are made up of people. People judge things differently. On a number of occasions, Title Insurance Company X will insure something that Title Insurance Company Y will not. It's the nature of the beast. I love my affiliated title insurance company, but I also want to know that I have others to call should I need to get a deal to closing. Is your title company bound by the underwriting staff of just one underwriter?
5. Where will the settlement take place? It all depends on your comfort level and convenience. Do they have a local office? Will they come to you? To the lender? To the buyer's home? Ask in advance, so you know what you're dealing with.
6. Do you have attorneys on staff? Titles can be confusing, and may require someone with a legal background to fully parse through recorded documents, legal proceedings and contract clauses to determine what needs to happen before or at closing. The title company attorney should never purport to fully represent your buyer, but they can provide guidance as to how to get the deal to settlement.
7. How many short sales and REO transactions have you handled this year? Short sales are REOs are different animals, and require much more work than refinance or straight seller-to-buyer deals. Is your title company well-versed in these nuances? How experienced are they?
We hope you find this helpful. As always, please email us at info[at]MASettlement[dot]com if we can ever be of assistance to your or your buyers!
Wrong.
Not true in any market, much less this one. Now comes the fun part - navigating from contract signing to settlement. An integral part of this process is selecting the title company.
So, how do you pick a title company? Likely you know someone and/or have worked with someone in the past. You have a relationship with them. And like all business, relationships are what drive this business. But let's say you are testing a new company out or want to dig a little deeper to see what is behind that friendly, helpful closing attorney?
Here are some great questions to ask which should help frame your decision:
1. What are your fees? All of them. No one likes hidden fees that do not pop up until the final HUD-1 is presented at the table. Ask your title rep for a fee schedule, or better yet, get the fees for your particular transaction. This can be done manually or via a web-based application, like ours.
2. When do you order the title search? This is the question which prompted this post. Some title companies wait until they hear the appraisal is back before ordering title. Why? It costs money to order title. See here what goes into a title search. However, I would insist that your title company order the search the day you hand over the contract. It's too important to wait. Otherwise, last minute title issues could arise that could have been addressed earlier.
3. How often is your escrow or trust account reconciled? Escrow/trust accounts should be reconciled monthly, no exceptions. If not, a shortage could exist which could come back and haunt your buyer should the title company find itself insolvent.
4. How many title insurance companies do you write for? This is a particularly interesting question today, and here's why it is important: title underwriters, like loan underwriters, are made up of people. People judge things differently. On a number of occasions, Title Insurance Company X will insure something that Title Insurance Company Y will not. It's the nature of the beast. I love my affiliated title insurance company, but I also want to know that I have others to call should I need to get a deal to closing. Is your title company bound by the underwriting staff of just one underwriter?
5. Where will the settlement take place? It all depends on your comfort level and convenience. Do they have a local office? Will they come to you? To the lender? To the buyer's home? Ask in advance, so you know what you're dealing with.
6. Do you have attorneys on staff? Titles can be confusing, and may require someone with a legal background to fully parse through recorded documents, legal proceedings and contract clauses to determine what needs to happen before or at closing. The title company attorney should never purport to fully represent your buyer, but they can provide guidance as to how to get the deal to settlement.
7. How many short sales and REO transactions have you handled this year? Short sales are REOs are different animals, and require much more work than refinance or straight seller-to-buyer deals. Is your title company well-versed in these nuances? How experienced are they?
We hope you find this helpful. As always, please email us at info[at]MASettlement[dot]com if we can ever be of assistance to your or your buyers!
Friday, November 19, 2010
BREAKING NEWS: DC passes "Saving D.C. Homes from Foreclosure Emergency Act of 2010"
On Wednesday, the District of Columbia enacted the "Saving D.C. Homes from Foreclosure Emergency Act of 2010." The key provision of which all of us dealing with DC real estate purchases must be aware is that for all foreclosure sales occurring November 17th or after, a "Mediation Certificate" must be recoded among the DC Land Records PRIOR TO the issuance and recordation of the Notice of Foreclosure.
Foreclosure attorneys, title agents and title insurance companies are all working diligently to see exactly what this means for DC foreclosures, but as this "Mediation Certificate" has yet to be created (to our knowledge), there seems to be a gap between what the law requires and what can practically be done to effectively foreclose on a DC property.
Again, as with any of these DC Foreclosure developments, the situation is very dynamic and fluid. As we receive more clarification and direction, we will pass that information along. To see all of our updates on Foreclosures, click here.
Foreclosure attorneys, title agents and title insurance companies are all working diligently to see exactly what this means for DC foreclosures, but as this "Mediation Certificate" has yet to be created (to our knowledge), there seems to be a gap between what the law requires and what can practically be done to effectively foreclose on a DC property.
Again, as with any of these DC Foreclosure developments, the situation is very dynamic and fluid. As we receive more clarification and direction, we will pass that information along. To see all of our updates on Foreclosures, click here.
Tuesday, November 9, 2010
DC Foreclosures Just Got a Little Tougher
On October 27th, District of Colombia Attorney General Peter Nickels issued this Statement of Enforcement Intent Regarding Deceptive Foreclosure Sale Notices. The Washington Post reported on this development here. In this statement, the Attorney General now requires:
This means that before a foreclosure sale can occur, there must be a clear chain of ownership of the indebtedness such that the public records match the name of the entity who is doing the foreclosing. Because of MERS and the securitization of loans today, this clear chain doesn't always exist.
How does this affect how we issue title insurance in DC?
We have received two underwriter bulletins on this subject. In the first, we are asked to comply with the statement and ensure there are "recorded assignments of the Deed of Trust each time the owner of the note sells the indebtedness so that a clear chain of ownership of the indebtedness leads to the lender who is directing the trustee to initiate the foreclosure action."
In the other bulletin (from another underwriter), we are asked for the following for DC sales transactions:
This obviously adds some some additional complexity to our title reviewing process, and may in some cases render a title uninsurable. Many speculate there may be some emergency legislative or judicial action to more clearly reconcile this opinion and that of MERS with respect to the latter's ability to foreclose on properties.
Stay tuned as more develops...
Prior to initiating a foreclosure involving a District of Columbia homeowner, a trustee or noteholder is obligated to confirm that the District’s land records demonstrate that the noteholder has the security interest that will be listed in the foreclosure sale notice. Each assignment of interest (or other document) by which the security interest was transferred to the noteholder, or to one of the noteholder’s predecessors in the chain of conveyances from the maker of the note, must be recorded with the Recorder of Deeds.
This means that before a foreclosure sale can occur, there must be a clear chain of ownership of the indebtedness such that the public records match the name of the entity who is doing the foreclosing. Because of MERS and the securitization of loans today, this clear chain doesn't always exist.
How does this affect how we issue title insurance in DC?
We have received two underwriter bulletins on this subject. In the first, we are asked to comply with the statement and ensure there are "recorded assignments of the Deed of Trust each time the owner of the note sells the indebtedness so that a clear chain of ownership of the indebtedness leads to the lender who is directing the trustee to initiate the foreclosure action."
In the other bulletin (from another underwriter), we are asked for the following for DC sales transactions:
Proof that the foreclosed Deed of Trust was not secured by owner-occupied residential property at the date of initiation of foreclosure proceedings, in the form of an affidavit from the foreclosing lender or its agent stating that the defaulting borrower(s) did not occupy the property as his/her/their personal residence at the date foreclosure proceedings were commenced.
This obviously adds some some additional complexity to our title reviewing process, and may in some cases render a title uninsurable. Many speculate there may be some emergency legislative or judicial action to more clearly reconcile this opinion and that of MERS with respect to the latter's ability to foreclose on properties.
Stay tuned as more develops...
Saturday, October 30, 2010
"A peculiar thing about this document..."
"It was never notarized!"
What Lucy and Charlie Brown can teach us about the proper execution of documents. :)
Happy Halloween from your friends at Mid-Atlantic Settlement Services!
What Lucy and Charlie Brown can teach us about the proper execution of documents. :)
Happy Halloween from your friends at Mid-Atlantic Settlement Services!
Friday, October 22, 2010
Foreclosure Update for MD, VA and DC
As we discussed in this post, the "Robo-signing" foreclosure issue is a very dynamic and fluid one. There is new information by the hour. Here are some updates to that original post:
Maryland and "Corrective Affidavits"
The Baltimore Sun reported here that several Maryland foreclosure attorneys had others sign their names on court documents rather than sign them personally. In an attempt to correct this, the attorneys filed "Corrective Affidavits" later. From a title insurance perspective, this adds another layer of review for us. Should we find such a document in a foreclosure file, our underwriter needs to review the entire file before allowing us to insure. Fortunately, this can often be done in a matter of hours.
Bank of America re-opening the REO pipeline
Bank of America has partially unfrozen its foreclosure halt by allowing foreclosures to resume in 23 states after having reviewed their processes and finding no errors. Foreclosures should resume by October 25th.
Use of a "Lender Indemnity"
The Fidelity National Financial (FNF) family of title insurance companies is requiring the use of an indemnity signed by the lender/servicer for each transaction settling November 1st or later. Such an indemnity is not required, however, for deals involving Bank of America REO property as a master indemnity agreement has been signed between the two entities.
Stay tuned, as more news is sure to follow!
Maryland and "Corrective Affidavits"
The Baltimore Sun reported here that several Maryland foreclosure attorneys had others sign their names on court documents rather than sign them personally. In an attempt to correct this, the attorneys filed "Corrective Affidavits" later. From a title insurance perspective, this adds another layer of review for us. Should we find such a document in a foreclosure file, our underwriter needs to review the entire file before allowing us to insure. Fortunately, this can often be done in a matter of hours.
Bank of America re-opening the REO pipeline
Bank of America has partially unfrozen its foreclosure halt by allowing foreclosures to resume in 23 states after having reviewed their processes and finding no errors. Foreclosures should resume by October 25th.
Use of a "Lender Indemnity"
The Fidelity National Financial (FNF) family of title insurance companies is requiring the use of an indemnity signed by the lender/servicer for each transaction settling November 1st or later. Such an indemnity is not required, however, for deals involving Bank of America REO property as a master indemnity agreement has been signed between the two entities.
Stay tuned, as more news is sure to follow!
Thursday, October 7, 2010
How is the "Robo-Signer" Issue Affecting Title Insurance in MD, DC and VA?
Even those not in real estate are now familiar with the term "Robo-Signer" - a term describing a mortgage company employee who allegedly signed thousands of documents authorizing foreclosures across the country, without actually having personally reviewed the loan documents. If you're not familiar with the story, this is one of the earlier pieces which brought the matter to light.
What impact has this had on the market nationally?
The investigation has caused lenders such as JP Morgan Chase, Bank of America and GMAC to cease their foreclosure practices in a number of jurisdictions while these entities take inventory and review procedures relating to the processing of these types of transactions. In addition, Bank of America announced today that it is halting foreclosures in all 50 states due to concerns that this practice affects all foreclosures, not just judicial ones.
What is the status in MD, VA, and the District of Columbia?
As of the writing of this post, only Bank of America has an outright freeze on foreclosures in MD, VA and DC. These jurisdictions are not considered pure "judicial foreclosure" states, and therefore are not included in the list of 23 states that Ally/GMAC (among others) is halting foreclosures in.
How does this affect how we evidence or insure title?
At this time, whenever there is a foreclosure in the chain of title or we are passing title from a lender to a new buyer as a result of foreclosure, we carefully examine the title and if we see irregularities we consult with our underwriter before insuring. At least one of our underwriters has instructed us to consult with them before insuring a foreclosure from Ally/GMAC.
Please be advised that this is a very fluid and dynamic situation. As we receive more updates from either lenders/servicers, or our underwriters, we will keep you updated.
Any questions? Please call your Title Service Representative or email us at info[at]MASettlement[dot]com today!
What impact has this had on the market nationally?
The investigation has caused lenders such as JP Morgan Chase, Bank of America and GMAC to cease their foreclosure practices in a number of jurisdictions while these entities take inventory and review procedures relating to the processing of these types of transactions. In addition, Bank of America announced today that it is halting foreclosures in all 50 states due to concerns that this practice affects all foreclosures, not just judicial ones.
What is the status in MD, VA, and the District of Columbia?
As of the writing of this post, only Bank of America has an outright freeze on foreclosures in MD, VA and DC. These jurisdictions are not considered pure "judicial foreclosure" states, and therefore are not included in the list of 23 states that Ally/GMAC (among others) is halting foreclosures in.
How does this affect how we evidence or insure title?
At this time, whenever there is a foreclosure in the chain of title or we are passing title from a lender to a new buyer as a result of foreclosure, we carefully examine the title and if we see irregularities we consult with our underwriter before insuring. At least one of our underwriters has instructed us to consult with them before insuring a foreclosure from Ally/GMAC.
Please be advised that this is a very fluid and dynamic situation. As we receive more updates from either lenders/servicers, or our underwriters, we will keep you updated.
Any questions? Please call your Title Service Representative or email us at info[at]MASettlement[dot]com today!
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