We want YOU to have a Happy and Safe Halloween! Don't be scared of your tough transactions. Send them to California Title, where we know how to deal with frightening files!

 

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Here is a great Q & A from Sign On San Diego regarding the foreclosure moratoriums. If you're purchasing an REO or working with a buyer on an REO, check with your Title and Escrow Company on when they will allow you to close.

Q&A: What's going on with foreclosures?

Some voices call for nationwide halt, others warn of 'catastrophe'

By Dean Calbreath

Originally published October 11, 2010 at 5:44 p.m., updated October 11, 2010 at 5:44 p.m.

What's going on with foreclosures?

The White House will be meeting this week with officials from all the major federal banking regulators - including the Office of the Comptroller of the Currency and the Federal Resreve Bank - to mull over how to address growing questions over how to handle the nation's banks foreclosures.

Over the past two weeks, some of the nation's largest lenders have stopped seizing homes in 23 states, and Bank of America took the lead in imposing a nationwide moratorium until it holds an internal investigation on how the foreclosures were approved.

Senate Majority Leader Harry Reid has called for a nationwide halt to foreclosures and California Attorney General Jerry Brown - on the campaign trail for the governor's seat - has called for the seven biggest lenders to stop foreclosures in the state.

So far, the White House has balked at any nationwide moratorium, and the banking industry has warned that it would be "catastrophic" if such a shutdown occurred. An estimated 5 million to 7 million homes are currently pending foreclosures nationwide, compared to 200,000 foreclosures that have been affected by the 23-state moratoriums.

But after recent revelations about flaws in the foreclosure process, pressure is mounting to find a solution to what appears to be a wide-reaching problem. Here are answers to questions consumers might have about foreclosures.

Q: Why have banks started freezing some foreclosures?

A: The immediate problem comes from so-called “robo-signers,” who often signed thousands of foreclosure actions each month without checking to see that all the documents were in order. The banks insist that the vast majority of these homes have been in default for as long as 18 months and that a significant number of homes are investor-owned properties that have never been occupied. But critics charge that the banks have also foreclosed upon homeowners who were paying down their loans up to the moment they were told their homes would be seized.

Q. How did this problem take place?

A. Lenders say they were unprepared for the massive wave of defaults and foreclosures that occurred over the last few years. After cutting back workers during the early phase of the mortgage crisis, they were did not have the staff needed to adequately handle the foreclosures, so they started rubber-stamping them.

Q: How long will it take to resolve the robo-signer problem?

A: BofA - the only lender to have halted foreclosures in all 50 states - estimates that it could resolve the issue in as quickly as two or three weeks. Stan Humphries, an analyst with Zillow.com, an online real estate database, estimates that it could take 60 to 90 days for the entire industry to deal with the "robo-signer" problem. But Humphries adds that the process could take longer if political pressure mounts for a wider-reaching examination of foreclosures.

Q: What other problems have surfaced with foreclosures?

A: More than seven states are now investigating claims that lenders used forged documents to speed foreclosures. In addition, because of the way that mortgages have been outsourced over the past decade, it is sometimes unclear who has the right to foreclose - the lender or the loan-servicer. Bank analysts say that's a minor glitch, but it has been become the subject of several lawsuits.

Q: How have California mortgages been affected?

A: So far, BofA is the only lender with a moratorium that affects California. Other lenders, including Ally Financial and JP Morgan Chase, have halted foreclosures in the 23 states that require a court’s approval before a home can be seized. California is not one of those states. But Attorney General Brown has called for all banks to stop foreclosures until they can prove they’re complying with state law, which prohibits lenders from recording notices of default on any mortgages made from 2003 through 2007 unless the lender contacts or tries diligently to contact the borrowers to see if they qualify for a loan modification.

Q. What effect will this have on the housing market? And what does this mean to people who want to buy a foreclosed home?

A. Foreclosure sales currently account for 43 percent of the California market, according to RealtyTrac, a real estate data firm in Irvine. To the extent that these problems begin to show up in California, it could put a temporary roadblock in front of a sale. One problem: title insurance firms are shying away from any sale involving a questionable foreclosure. But real estate analysts say that as long as the problem is solved quickly - say, 60 to 90 days - it should have relatively little impact on the market. Rick Sharga, RealtyTrac's executive vice president, said he's noticed little impact from the moratoriums that have recently gone into effect.

via signonsandiego.com

In my opinion, this will not be a nationwide catastrophe as the news puts it, but rather a hiccup in the REO process and real estate market. The real estate economy is a must fix for the US government as it creates tons of revenue for local and federal governments. It also creates jobs in the form of contractors, builders, real estate professionals, title and escrow companies, appraisers, the list goes on and on.
To have a hiccup like this should only serve as a short lived stall in production.

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Introducing California Title's NEW Web App for most smartphones. This web app is the only app that links our site to your smartphone. Login with your current username and password and have access to property information, in the palm of your hand.

My Best,

Mike Turner
Vice President
County Sales Manager
California Title Company
760-535-3836
miket@caltitle.com

Keep California Golden!  Please don’t print unless absolutely necessary.

Confidentiality Notice: The information contained in this electronic e-mail and any accompanying attachment(s) is intended only for the use of the intended recipient and is non-public in nature and may be confidential and/or privileged. If any reader of this communication is not the intended recipient, unauthorized use, disclosure, dissemination or copying is strictly prohibited, and may be unlawful. If you have received this communication in error, please immediately notify the sender by return e-mail, and delete the original message and all copies from your system and promptly destroy any copies made of this electronic message. Thank you.

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California Title offices will be closed on Labor Day, but our Sales Reps will be available ALL WEEKEND. Don't hesitate to call us if you need information for showings or listings over the weekend.

My Best,

Mike Turner
Vice President
County Sales Manager
California Title Company
760-535-3836
miket@caltitle.com

Keep California Golden!  Please don’t print unless absolutely necessary.

Confidentiality Notice: The information contained in this electronic e-mail and any accompanying attachment(s) is intended only for the use of the intended recipient and is non-public in nature and may be confidential and/or privileged. If any reader of this communication is not the intended recipient, unauthorized use, disclosure, dissemination or copying is strictly prohibited, and may be unlawful. If you have received this communication in error, please immediately notify the sender by return e-mail, and delete the original message and all copies from your system and promptly destroy any copies made of this electronic message. Thank you.

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This week we have 2 days of Special Recordings to get your deals closed. Tuesday is the end of the month, so recordings will also take place in the afternoon, and Friday is the day before a Holiday weekend. Take advantage of these two recording times.

My Best,

Mike Turner
Vice President
County Sales Manager
California Title Company
760-535-3836
miket@caltitle.com

Keep California Golden!  Please don’t print unless absolutely necessary.

Confidentiality Notice: The information contained in this electronic e-mail and any accompanying attachment(s) is intended only for the use of the intended recipient and is non-public in nature and may be confidential and/or privileged. If any reader of this communication is not the intended recipient, unauthorized use, disclosure, dissemination or copying is strictly prohibited, and may be unlawful. If you have received this communication in error, please immediately notify the sender by return e-mail, and delete the original message and all copies from your system and promptly destroy any copies made of this electronic message. Thank you.

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If you're buying or selling a home and want to know why you are purchasing Title Insurance, see below:

The Basics

What is Title Insurance?

Title insurance is a contractual obligation that protects against losses that occur when title to a property is not free and clear of defects (e.g. liens, encumbrances and defects that were unknown when the title policy was issued). The terms of the policy define what risks are covered and what risks are excluded from coverage. The title insurer will reimburse you for losses that are covered, up to the face amount of the policy, and any related legal expenses. This protection is effective as of the issue date of the policy and covers defects arising prior to your ownership. Title companies issue policies on all types of real and personal property. Two types of title insurance policies for real property are common: a lender's policy and an owner's policy.

Who Should Purchase Title Insurance?

Lenders require title insurance as a condition for your loan. Two types of policies are available: an owner’s policy and a lender’s policy. A lender’s policy insures that the lender’s security interest in the property has priority over claims that others may have in your property. A lender’s policy does not protect you. Similarly, the prior owner’s policy does not protect you. If you want to protect yourself from claims by others against your new home, you will need an owner’s policy. An owner’s policy insures the buyer for as long as he or she owns the property. This protection is limited to the value of the property. It is usually less expensive to purchase a lender’s policy and owner’s policy at the same time from the same title insurer. Contact your California Title Sales Representative for additional information.

How Much Title Insurance Will I Need?

The homebuyer should insure the full purchase price of the property; the lender only requires title insurance to cover the amount of your loan..

Who Pays the Premium for the Title Policy?

In California, settlement practices vary from locality to locality. The party that pays the title premium is a matter of local custom and practice and not set by law. Depending upon the region, the premium for a title insurance policy can be paid by the buyer or the seller or split between both parties. In Southern California, the seller customarily pays the premium for title insurance. In Northern California, the buyer customarily pays the premium for title insurance, or occasionally the premium is split between buyer and seller. In almost every county, the buyer pays the lender’s policy premium. The parties are free to negotiate a different allocation of fees. Your escrow officer can advise you as to who normally pays the premium in your area.

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Recording fees for the County of San DIego will be increasing July 1st. Please contact me if you need more information on how this might affect you closing your transaction!

For a more in depth list of recording fees, see the attached website:

http://arcc.co.san-diego.ca.us/default.aspx

My Best,

Mike Turner
Vice President
County Sales Manager
California Title Company
760-535-3836
miket@caltitle.com

Keep California Golden!  Please don’t print unless absolutely necessary.

Confidentiality Notice: The information contained in this electronic e-mail and any accompanying attachment(s) is intended only for the use of the intended recipient and is non-public in nature and may be confidential and/or privileged. If any reader of this communication is not the intended recipient, unauthorized use, disclosure, dissemination or copying is strictly prohibited, and may be unlawful. If you have received this communication in error, please immediately notify the sender by return e-mail, and delete the original message and all copies from your system and promptly destroy any copies made of this electronic message. Thank you.

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