Title Insurer LandAmerica Files For Bankruptcy
Friday, Fidelity National Financial changed it’s mind about buying LandAmerica. LandAmerica Financial Group Inc has filed for bankruptcy protection — here’s a copy of the memo circulating locally:
“It has come to our attention that effective November 24, 2008, the LandAmerica company operating as LandAmerica 1031 Exchange Services Company, Inc. (”LES”), a 1031 exchange facilitator, has terminated operations.
We have further been made aware that as of November 25, 2008, one or more warehouse lenders have elected to discontinue accepting Insured Closing Letters and are no longer wiring funds to any LandAmerica title agents. The companies impacted by such decisions include Commonwealth Land Title Insurance Company, Land Title Insurance Company, LandAmerica NJ Title Insurance Company, Lawyers Title Insurance Company, Title Insurance Company of America (TICA) and United Capital Title Insurance Company.
We strongly recommend you determine whether any loan transactions are in the process of closing with any of the impacted companies, and, confirm with your warehouse lenders and investors as to any constrictions they may have placed into effect as a consequence of these developments. ”
So what happened?
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Their 1031 subsidiary took their clients funds (and interest) and invested them in auction rate securities. When they became worthless they had no cash for the exchanges and the parent company, Landam, has to pony up. 1031 companies are not well regulated and a number of them had major, huge defalcations. $660 million loss in one quarter (Q3) not good. Portraying it as the economy but probably mostly due to terrible, stupid decisions by those who ran the 1031 company. Ran a 100+ year company into the ground.
I am surprised to hear that those 1031 Co. can use clients’ 1031 money. Are they regulated and illegal to do so?
Sounds like a old scam.
This will not be taught for real estate license. That’s why we need the “dallasDirt”.
TonySo@magnum2000.com
So, Tony, you are suggesting the big bad “DallasDirt” is the Woodward and Bernstein of the real estate industry? Sorry. More like targeting the lowest common denominator of constituency, sorta like Larry Flynnt. But, hey, worked for him…..for awhile.
Tony to Huh: Forget about the Dirt now. Have a happy Thanksgiving.
) with sincere.
To everyone and military personel serving in overseas too.
TonySo@magnum2000.com
@Huh?: Well, you’re here reading along with the rest of the lowest common denominator, so what does that make you?
Pull up a chair and enjoy.
Colleywood, good point. Tony So, cheers to your sentiments!
PrincessandthePea to Huh: yeah, this blog is like the Woodward and Bernstein of Dallas Real Estate. This is where we found out that one of the top agents in town may soon be wearing stripes, not orange. This is where we learned about the Jonas brothers and Tony Romo and lots more. Seems like that all bugs you because you have some nasty little secrets you want to keep from the publico. Wonder why? Wonder why your panties are all in a wad over Orange and her issues being made public — dirt serves a purpose if it keeps one more person from being screwed. Wonder why you are so loyal… got your finger in an Orange mud pie? Lowest common denominato Orange you here all the time?
Hey DirtFest, have another shot and keep on ramblin’…. Oh yes, the Jonas brothers and Tony Romo…say no more. I am on the edge of my seat (even with my panties all in a wad) in great anticipation of the next scrumptious breaking news morsel! LMAO.
Nothing to wonder about and you shouldn’t be spending your precious time on that right now anyway. You have enough things to deal with….or will soon.
Messages received.
OK, please pass me the turkey drum stick.
By the way, who is doing the dishes?
Thank You. Be happy for the holiday(s), Xmas coming up.
TonySo@magnum2000.com
Here’s somthing our genius reporter has not revealed or maybe does not know: a certain realtor with big time irs problems — check the archives — is now pinning the blame for her sinking ship on another agent. This agent supposedly sent packets of information to all her clients and then they went away. Boo hoo. Not like anything esle could have made them scram. This ought to be interesting. Woodward and bernstein would have spilled it all!
Woodward and Bernstein would have spilled what? A realtor delivering “anonymous” packages to another realtors listings? A realtor, under the auspices of an “insider”, ominously (but thankfully!) predicting their future in the cross-hairs of a certain government agency. A realtor calling all agents of another realtor AND dropping by their open houses to warn them of the same future.
That scenario would be pretty underhanded and maybe even against some realtor ethics rules, IF, that same realtor had not provided the solutions to those horrible predictions. Problem? Problem solved.
You know, it’s all about people needing people. They are the luckiest people. There couldn’t possibly be a problem with that…could there?