D

Homeowners Getting Stuck With Contractor Bills?

Dream house turned nightmare. This story ran on WFAA-TV a few weeks ago, very dramatic: a physician says the builder didn’t pay his sub contractors on her $1.3 million Frisco dream house, so now they are knocking on her door, looking for payment. I have two words: Title Insurance. I may be wrong, but isn’t that why we buy title policies and aren’t they supposed to cover this kind of stuff? Wonder why the reporter didn’t ask more questions.

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?

LandAmerica: Another Citibank?

Fidelity National has backed out of a deal to acquire cash-strapped LandAmerica. What is that going to mean for local sales and closings? I’m feeling deja-vue.

Stock Market Taking A Bite Out Of Real estate Market

So says Park Cities People Real Estate editor Austin Kilgore.

Everybody’s Suing — Music To My Ears

Only because I have two lawyers in my house, but I kind of saw this coming a few week’s ago. If people have no money to pay their attorneys fees, think they’ll take chickens?

Shop/Compare Title Policies On Line?

It’s all about transparency.

One Thing That Can Take Our Minds Off The Market: BEVO

AIG Questions Answered

I wonder if all the state insurance departments are going to need to hire up extra hands to deal with all these restructuring companies — AIG, United Title… check out this comment:

“UTT cashed my earnest money check over 6 weeks ago. I have filed a complaint with the TDI to no avail. I have contacted the fee attorney, Brenden Gowen, associated with my funds. His office would not even respond until I mentioned contacting the Attorney General of Texas, then a quick email with no answers. I have also contact First American Title, twice, with no results. I have contacted Pacific North West Title, parent company to First American, again, no answers. Someone is using my funds, but I’ll bet I will receive no interest on my money. Everyone contacted can tell by the trial balance, my earnest money was included, but strangely the funds have vanished. My realtor and my lender have been assisting me but they asked for my help because they can’t get anywhere, either. Good luck to all the UTT employees. We are all between a rock and hard place.”

United Title: Show Me The Money, Honey

Updating United Title – what is happening? Who wants to talk? Received this email:

“Basically, fee attorneys know nothing; First American Title knows nothing; and TDI (Texas Department of Insurance) referred me back to First American.  First American said last Friday that TDI had not released the fee attorney funds yet, but TDI never mentioned that.  SO, it’s the runaround.”

I sent an email to Audrey Selden, an attorney I know at TDI, to see what she says. Anyone else still waiting on funds?

Mortgage Loan Servicer To Shed Employees

Now news that Homecomings Financial is closing, laying off employees…

Feds Take Over Fannie Mae/Freddie Mac

As I am sure you have heard. I have sent off some emails to find out what the local impact of this will be for folks in Dallas. More personally, since I own shares of Federal National Mortgage Association (FNM) or Fannie Mae, purchased 5/15/01, I want to know what this means to me as an investor. Government takeover of the two largest quasi-public mortgage giants in the country, rumors of more Title Company lay-offs, it’s going to be a busy week. Stay tuned.

More Title Company Layoffs Expected?

I wonder if this will affect any local title companies like Dallas, Highland Park, or Preston Center…

Eleanor Mowery Sheets & Associates and Stewart Title

A trusty source tells me that Stewart Title may be directing all closings from EMS to their legal department in Houston.

United Title, New Developments

Spoke to Robert R. Carter, Jr., Deputy Commissioner, Texas Department of Insurance regarding Consumer Escrows. TDI is distributing the majority of United’s escrows to the underwriters: First American, Title Resources, Pacific Northwest, Old Republic, Stewart Title, and Fidelity. Fidelty chose not to take their share of the escrows Friday pending accounting reviews. It is Mr. Carter’s understanding that Fidelity did buy the Mercury Cos. Colorado operations. I called Fidelity Tuesday and the press office said they had no comment on the purchase of Mercury.  

Are Successful (Rich) People Usually %#@!!*&%?????

I am mulling over the local Real Estate news of the past two weeks, and was searching for an article I wrote for D in 2003 when I found this article by Tim Rogers, written about none other than Darwin Deason. Talk about a guy who might not be crowned King of the Prom…  

RE: United Title of Texas

One local agent’s story: His listing was scheduled to close with United Title, went to close last week, you know the story, earnest money nowhere to be found. The sellers were kind enough to credit the buyers with $1500 (amount of earnest money), thus reducing their sales price by $1500 to get the deal done at another title company. Question for United Title: how and when will buyers get their earnest money?