05.19.08
Posted in Land Title Technical Stuff at 4:30 pm by Jeanne
Betty from the DOT called today, asking about the widening of a road. As I understand it, the area next to the existing road that they want to widen was originally dedicated to the City for a Public Park on an 1880’s plat. More recently, there was a replat (i.e. a new plat filed on top of the old plat) by some individuals, but no vacation of the 1880’s plat shows of record. Question is – does the City still own the Parkland?
Although I am not an attorney, (just a title examiner and an abstractor), I recommended she try a couple of things:
• First, Contact the City to see if they have a record of a City Council Meeting where the council passed a Resolution to vacate the 1800’s plat. After all, it is not uncommon for a City, after authorizing the vacation of a plat to forget to file it with the County Recorder. If the city does have record of a resolution to vacate it, look to be sure the resolution specifically states that the Dedicated Park, roads, easements, etc. were vacated and file it in the land records.
• Second, if no vacation can be located at the City, take a good look at the new plat.
o See if the City signed off on the new plat, which may effect a ratification of the plat, and resolve the problem.
o Watch for specific language on the Replat as to the intent of the City in signing the new plat. If still in doubt of ownership after reviewing the new plat, talk to the City attorney or to legal counsel at the DOT.
Good luck - I’d love to hear how it turns out!
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11.17.07
Posted in Industry News, Judgment Searches, Land Title Technical Stuff at 1:02 pm by Jeanne
Nobody is thrilled about all the short sales and deeds in lieu. After all, Lenders do not want to accept less than they are owed and they are concerned that buyers may be getting below-market deals at their expense. Congress, HUD, FNMA, etc. are leaning on lenders have to figure out a way to reduce foreclosures. Public pressure and perceptions are driving the change as well. The lending industry has a major black eye. And, of course, the Borrowers do not want to lose that all-important credit rating, not to mention loss of their home. The international market is pulling out from buying pools of mortgages, seeing them as an untrustworthy investment. But, right now short sales, foreclosures and deeds in lieu are a fact of life.
Lenders are speculating that they may be buried by borrowers who could pay but don’t want to pay. They are requiring borrowers to demonstrate a financial hardship, such as a job loss or illness. Looking at pay stubs, bank accounts. Rather like the reverse of reviewing the loan all over again – to see the person can’t qualify. Even then, they’re skeptical when a deal is on the table.
In addition, title insurance companies are being asked to review the deal as well. After all, while a deed in lieu of foreclosure saves the lengthy and expensive process of foreclosure, it brings in all intervening liens. That means if there are judgments because credit cards are behind and there are corresponding judgments against the borrower, or there are outstanding child support liens, medical assistance liens, State or Federal Tax Liens, or a host of others, these liens will have priority over the deed in lieu, making the transaction very sticky, and perhaps impossible.
I am seeing droves of advertisements for books and classes to “Buy Foreclosures and Make Money!” I pity the person who believes these ads and loses their shirts on a business that is over the heads of most professionals in the industry.
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11.07.07
Posted in Education, Land Title Technical Stuff at 1:18 pm by Jeanne
You want to figure out a complex title question. You know you should be able to answer it, but it seems so hard. You just read something about it – but somehow, you just didn’t get it. Some people are simply good students. They love to sit all day and read that boring stuff. That’s not you.
How does one learn information? How does one best study information to retain it? Once you can remember it, how do you apply what you have learned? There is no simple answer. We are all different. Some of us are “hands on” – you know, the kid that always says “Let me do it Mommy.” Others clearly remember and recite the story they heard Grandpa tell about Dad years ago. Others can recite exactly how the sequence went down after seeing that amazing touchdown by the Vikings new quarterback. What is your natural way of learning and remembering? A good teacher should use them all – Visual, Auditory, Read & Write, and Kinesthetic (touch).
Generally:
Visual learners enjoy:
Pictures, diagrams, Charts, Books, PowerPoint, Maps, Articles about a topic
Auditory learners enjoy:
Discussions, Lectures, Stories, Jokes, Memory Pegs
Read & Write learners enjoy:
Definitions, Handouts, Textbooks, Glossaries, Underlining, Highlighting
Kinesthetic learners enjoy:
Hands on samples, photographs, use of all senses – (sight, touch, smell, hear,,,) laboratories, field trips, tours
I have had classes where students re-type almost every word I say in class. They say it is the only way they can retain the information. I understand. Some will re-draw the Picture from the diagram I use when asked to describe the components of Land. The diagram shows the Earth with a pie-shaped wedge cut out and arrows pointing to the Surface, Subsurface and Air Space. They are visual learners. When asked about government rights in land, many will repeat the memory peg “PETE,” (Pete is the Government guy who is in charge of all Government Rights in Land – Police Power, Eminent Domain, Taxation and Escheat.) They demonstrate those who use auditory senses to retain information.
I was shocked to learn in my latest Learning Style test, my style had shifted from my weakest style to one of my strongest style. I have tested many times, and the results change depending on what I am working on, but this was a major shift. I now used all four primary modes of teaching and was strong both as a Kinesthetic Learner and Teacher. That meant I was making conscious use of all the senses – hearing, site, touching, tasting, etc. I was incorporating “theoretical field trips” to various offices by talking about the sites, sounds, locations and smells in the Public offices. First, Visualize yourself in the Recorders Office, now remember what we need to search for here. I was giving real life examples of situations for people to experience. I was supplying hands-on exhibits of Tract Index books, Abstracts of Title to examine. Things to discover by trial and error. I was using concrete items that could be both used and tested for understanding- photographs, Plat books, and even Surveyor’s Chains to pass around. For me, it was a kind of pleasant awakening. I had long strived to teach and use all different styles, and I finally arrived. I hope to continue to use all styles to make these sometimes esoteric topics, understood by few come to life for many.
Discovering your Learning Style can help you spot how you absorb information, what makes learning easy and more relevant, so that you can retain needed information and apply it. I recommend you try this free test at http://www.vark-learn.com/english/page.asp?p=advice Take the test, you may be surprised.
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08.07.07
Posted in Education, Land Title Technical Stuff, Value of a title searcher at 9:17 pm by Jeanne
FULL abstracts of title still exist. In many parts of the Midwest, each and every recorded document is “abstracted” into a book that is “continued” every time a property is sold, and handed off from owner to owner.
While some of the large Underwriters and Real-estate-company-owned title companies have tried hard to get rid of abstracts, the Bar Associations and many other knowledgeable people want to keep them. They are history, they represent the essence of title. In my opinion, the abstract is still the ideal information product. It shows every document - every easement- who holds it, what it is for, when it will expire, and its exact location. The same with Restrictions, Deeds, etc. I still love the traditional abstract, and those who take the time and care to prepare such an awesome product. A full abstract tells “The whole recorded truth.”
I believe the reason that some want to get rid of abstracts is that it is faster and cheaper to do without them. We all love faster, cheaper. But more importantly, without an abstract, there is no evidence of the fact that many searches being done today are of horribly poor quality. The poor quality of the search is then translated into the poor quality of the title product given to the homeowner.
I am also saddened by the shortcuts taken on title commitments. I had a call from a real estate agent the other day who asked my opinion on concerns he had on a title commitment from a large affiliated business title agent. His buyer was a Sr. VP for a major company, buying an Owner’s Policy on a very costly home. In looking at the commitment, I saw exactly what he was talking about. The areas of greatest concern for me were:
1) The Commitment specifically excluded any coverage assessments for Utility, water, sewer… and other assessments levied PRIOR to closing against current or prior owners, even though they DID charge the seller both for an “assessment search” and for an “evaluation” of that assessment search.
2) The policy generically excluded “Covenants, Conditions and Restrictions,” which I believe are one of the MAJOR reasons one buys an Owner’s Policy, especially in the swank area where this buyer was purchasing. (Seems to me the title agent was just too lazy to do his job.)
3) The policy generically excluded “Utility and Drainage Easements of Record, if any.” Again, I think the Title Industry owes it’s customers some kind of due diligence for a decent search. After all, wouldn’t YOU want to know if there was an easement in favor of six different parties over your property to get to the lake and park their boats? Or a 50 foot pipeline across the middle of the back yard? YIKES.
4) They did catch one recorded easement. (After all, the property was Torrens.) But, even after it was specifically requested, the Title Agent absolutely refused to provide any assistance as to its location (although they did charge for a plat drawing and inspection that did not show the easement.) How sad. After all, if you can’t figure out an easement, what the @%#! are you doing in the title business?
These (non-abstract) mini-searches and resulting title policies do, however, fit the current risk-underwriting philosophy, which is “Take all the short-cuts you can. Go for quick and easy (forget the quality that is due the homebuyer) and then let the Homeowner take the “hit” when easements, restrictions or assessments become a problem. No wonder the title industry is being chewed up and spit out by the media.
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05.21.07
Posted in Land Title Technical Stuff, Money and Finance, Mortgage Problems at 1:58 am by Jeanne
I know it’s not a sexy topic, mortgages. But everyday, I see mortgages with almost impossible terms. Fifty years -?, “bad credit okay,” “adjustable rate, “negative am,” “low initial rate,” and WE all know what that means… But do the borrowers on these sub-prime mortgages, aka loser loans, (and I mean loser in more ways than one) know what they are getting into? I believe Closers have responsibility to cover the mortgage note and mortgage deed or deed of trust in detail so that the borrower will get the picture.
I once closed a first mortgage loan at 23%. Yes, 23%. In the early eighties, a gentleman needed to refinance a land contract, or lose his house. With bad credit, he went to the local “Credit and Thrift Company.”
He had no choice, and I had no choice but to explain the terms to him, as a good closer does. It was a terrible closing. He even pulled my phone off the desk and threw it at me. He wanted to kill the messenger. I did what was required and explained it all in a professional manner, but I sure felt sorry for him. He was doomed to lose that house.
That was an isolated insident for me, Thank heaven! But now, I am not so sure it doesn’t happen to you all every day. The news is bad. But I hope you have the integrity to completetly and professionally explain to the consumer What they are signing.
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05.18.07
Posted in Land Title Technical Stuff, Money and Finance at 12:04 am by Edward
Jeanne: Sometimes under residental financing only the husband (or wife) will sign the note (per bank instructions) although both are in title. However, the standard residential mortgage usually assumes that the “mortgagors” are one and the same as the “borrowers, who signed a note of even date” and since under this scenario that is not technically true , could the bank have trouble triggering a foreclosure against both without a proper reference in the mortgage (nexus) reflecting that it is securing a “note signed only by ________(husband) ? I believe that unless all owners sign the note you should use a Guarantors Mortgage. Would title insurance protect a lenders decision to have less than all sign the note? Is it escrow’s responsibility to advise a lender on this?There are many other possibilities : Mary Smith Trustee in title but only Mary Smith individually signs the note? Thanks, Edward
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