The Buck Stops Here: Toxic Titles and Title Insurance
Molly Rose Goodman
July 1, 2013
42 Real Est. L. J. 5 (2013)
Abstract:
By failing to properly transfer ownership of loans and mortgages, recording fraudulent documents, and performing unlawful foreclosures, financial institutions and law firms have generated property titles that range from defective to toxic. Those actions evince a systemic failure to comply with longstanding principles of real property law and regulations governing financial transactions. Title companies participated in title services and issued title insurance policies throughout the housing boom and although they did not directly cause toxic titles, many title insurers have ultimately assumed the risk for the bad practices that became the industry norms in the last decade. In this article, I will discuss how title insurers have exposed themselves to liability for toxic titles.
Well, okay, we’ve known about this for years. Many people have been screaming about it for a long time; I’ve always thought it was the proverbial “other shoe.” Lender Processing Services has snapped up many title companies, so it will probably whitewash the very fraud that it created with its massive and institutional robosigning of hundreds of thousands of bogus foreclosure documents. For a price, of course.
You gotta love it: Lender Processing Services commits the fraud, and then another arm of its octopus-like empire gets paid big bucks to–somehow–make that very fraud go away.
It’s really despicable, and I blame the president for not having the balls to go after these criminals and crush them like the roaches they are.
Thanks for the exposure and now they have finally found a way to cut my ability to view your down loads of PDF’s files . Can you see if you can forward them to me maybe in a word file so I can open them for much need information .
thanks so very much
Can’t wait to see what Fidelity does with the titles once it complete the acquisition of LPS. I agree 1000%t the President is in complete fault for allowing all this.
When asked about indemnification (of title insurer) the agent said ‘ . . . well you accepted the MERS bit . . .” what a crock – when they [title insurance entities] were more aware of and had privy to what was actually going on behind the scenes than the waif-like borrower/mortgagor had no idea about or the slightest bit of savvy to understand or even suspect – insurance commissioners need to get on board and start massive inquiries into all these collective title insurance entities who were colluding with brokers and lenders while the homeowner/mortgagor was buying rounds of drinks for everyone in the bar without any knowledge as being the one paying the title insurance premium but the lenders and affiliated third party vendors were reaping benefits – getting buzzed on the homeowner’s tab – just another money making scheme with the title insurance entities without any intentions of indemnifying the unsuspecting homeowner who knew nothing about the MERS scam – just call and ask your title insurer about a claim . . . yeah right good luck on that one…
An owner’s title insurance policy provides assurance that your title company will stand behind you if a covered title
problem arises after you buy your home. The bottom line is that your title company will be there to pay valid claims and cover the costs of defending an attack on your title. For a one-time fee, an owner’s title insurance policy provides protection for as long as a homeowner or heirs own interest in the property. Only an owner’s policy fully protects the buyer should a covered title problem arise that was not found during a title search, including ownership challenges. Other possible hidden title problems can include errors or omissions in deeds, mistakes in examining records, forgery and undisclosed heirs.
Check out http://www.homeclosing101.org for more information.