Jami's Blog

New Blog

2008-03-07T15:50:58Z

We're working on getting our new site up and running using wordpress as the generator. I invite all of you to visit our site/blog at http://www.oldcolonialtitle.com/.

As always we offer the lowest closing prices in the country at only $199 for an all-inclusive closing. This fee is inclusive of the attorneys fees, settlement fees, courier fees, wire fees and doc prep fees. In today's tight market this means more buyers will be able to have funds to close!

New Tennessee Law Prohibits Agents from Rebating Commissions

2007-06-06T09:33:50Z

Governor Phil Bredesen just signed a new law here in Tennessee that prohibits real estate agents from giving away cash rebates, gifts or prizes in conjunction with a real estate transaction. The bill, SB1160, had been backed by the Tennessee Association of Realtors.

The bill passed despite a letter being sent by the Department of Justice to House Speaker Jimmy Naifeh urging the state house of representatives not to pass the bill because of the "serious harm to the competitive process and home buyers and sellers in Tennessee."

I've been hearing quite a bit about this bill and it seems that several discount brokers aren't too happy. Their argument is similar to that of the Department of Justice.

Since I represent a local real estate association I feel at this time it would be best for me to withhold my opinion. But I would love to see what some of you think about this.

Housing Bubbles are a Local Phenomenon

2007-06-05T09:37:51Z

I am often invited to speak in front of groups and give speaches concerning the local real estate market. People who work with me know that I try to always know the pulse of how the greater Memphis area market is performing. While browsing the net I came across the Dr. Housing Bubble blog that looks at the Southern California market. What interested me in the blog was that it had a very good comparison between the L.A., Palm Beach and Memphis markets.

I thought some of you might be interested so here is the link. http://http://drhousingbubble.blogspot.com/2007/06/comparative-analysis-of-3-us-cities.html

Do you only post for points?

2007-05-30T11:03:58Z

I enjoy reading the insightful and educational posts from my fellow active rain members. You guys all help educate me with these posts. And as a lawyer I always tell my clients that my job is that of teacher. I need to educate them so that they will be able to make informed decisions regarding either real estate law or estate planning, the two areas of law that I focus on.

You're probably wandering "what does that first paragraph have to do with posting for points?". What I'm attempting to communicate is that I feel a blog is a great way to help educate others. And a lot of you are doing just that. Every day that I come to this site I learn something new that I can tuck into my arsenal of knowledge. It's also a great way to get new business. (And if you've read any of my previous posts you're probably aware that I've been lucky enough to gather new clients via active rain.) Unfortunately it seems that some active rain members are just posting on their blogs in an attempt to get more points, and not to share knowledge or experience.

For lack of a better term I've coined this as "points wars". I'm sure every one of you has seen this. If not just look up a geographic area by state, county and city and then look at the profiles and blogs of the members who are close to, or at the top of their respective geographic locations. What you'll find often is that there are at least a few bloggers there who are attempting to reach the top by posting blog entries for the sole purpose of gathering points. Usually these posts are about some topic out of left field.

I don't really understand the purpose of these posts. What good is there in being one of the individuals with the highest points in your state or area if your posts are filled with fluff? I own a regional title company, so I often check different areas of the country and I see this all the time in many different locations. People are not going to use someone just because they have a lot of points (at least I hope not). They are going to choose someone based upon quality information that they give and because they connect with you. Are your posts giving them these things?

Don't get caught in the points wars. Make sure that all of your points meet one of the two criteria above. Each post should either give quality information that helps educate potential clients or it should give information that helps them connect with you on a personal level. Remember it's quality not quanity that really counts.

How Much are Your Fees?

2007-05-23T12:18:25Z

That's the question that I've been repeatedly asked on the phone from agents, loan officers and buyers and sellers of new homes. (Not to mention my wills, trusts and estate planning practice.) Most recently I've received numerous emails and calls from those of you who found me on Active Rain. (What a wonderful surprise this site has been for business generation, I know I've said that once before but I'm still somewhat stunned by the new business that has come in.)

So, in an effort to help everyone out who has requested a fee sheet I have decided to scan in our sheet and post it on the blog for your pleasure. Note that the sheet states Shelby County, but the rates are good for most all of Tennessee and for most of Northern Mississippi, including Desoto County.

To order your closing please call us at our toll free number, 877-599-2449.

The 4 Reasons Real Estate Agents Are Sued

2007-05-23T10:36:57Z

I was recently asked to be the key speaker for a group of individuals from the real estate and mortgage industry. The person who was putting together the program had asked me to share some thoughts on the top ways that agents get themselves in trouble. I thought that some of you might enjoy a quick look at 4 Fastest Ways to be Sued.

Failure to Disclose a property defect. - Okay ladies and gentlemen, always, always, always, document everything! If there is anything at all that you are aware of (leak in kitchen, prior history of pests, anything) make sure to have it written down somewhere and have your clients sign a statement showing that they are aware of this issue. You also want to make sure that you have completed a thorough walk through of the property yourself to see if there are any visible issues. The old adage "Buyer Beware" should also state "Real Estate Agent Beware", failure to adequately complete an inspection by the agent and disclose any issues can be grounds for a lawsuit against you. If there are make sure that you point them out. On the same note, if you've offered your client any type of advise and they decline your advice make sure that you have them sign a statement showing that you offered said advice and it was decline. KEEP THIS ON FILE! Unfortunately we live in a world where people will sue over anything, even if it isn't your fault. Do everything you can to protect yourself.
Don't Give Legal or Tax Advice. - Okay, raise your hand if you've ever given advice to a client regarding how the sale of their home will not be taxed because they've lived in it for the past two years. Or how many of you have helped answer questions regarding the contract, almost everyone I bet. The simple fact of the matter is that most states consider this the illegal practice of law. I know, you're thinking "but that's my job". The fact is that you are only allowed to to help in completing the forms that your local association has. You are not allowed to give advice regarding any of the legal ramnifications. So protect yourself and defer these types of questions to the attorney who will be representing your clients at closing.
Not Disclosing Dual Agency. - If you are involved in a transaction where you are representing the buyer and the seller make sure that you are "shouting from the mountaintop" to everyone that you are the agent of record for both parties. Again, document, document, document! I can't believe the number of times that I've been to a closing and the parties where not aware of this. For those of you who are builder's agents at model homes be especially aware of this. I probably see more issues from this type of agent than any other. A nice couple comes in, you're there to help them and guide them through the process of picking a lot, a plan and all the fixtures. Before you know it you've forgotten to disclose to them the dual agency or you've waited until very late to do so. Either way the end result is usually a client who ends up feeling a little betrayed and has a bad taste left in their mouth. At worst this results in a lawsuit and at best their never going to use you again or give referrals. Be aware.
Breach of Fiduciary Duty. - This is probably the hottest thing going these days and I could (and have) written and given entire speeches on the issue. What types of duty are the agents breaching you ask? Well the biggest thing is for pushing certain companies involved in the settlement process. Do not, I repeat Do not simply tell your clients about only one appraiser, pest control company, home warranty company, attorney/title company. My advice is to put together a small portfolio listing at least three different companies for each service. Give this to your client and let them look through it and compare prices and choose which company they won't to work with. If you don't do this and you refer a company who is not either A)the best company (which can be impossible to determine from a legal standpoint) or B) the lowest price you have breached your fiduciary duty to your client. I'm willing to bet that 90% of agents are guilty of this. And up until 2007 noone was even paying attention. But we've entered a whole new era. Consider this your warning.

Marketing questions for Real Estate Agents and Loan Officers?

2007-05-18T11:14:20Z

As a small business owner I'm always looking for the best way to market myself, my firm and my title company to grow business and stimulate interest in my profession. And I really enjoy the marketing aspect of my business. (And I hope that all of you do as well since it is one of the most important things you do as a business owner.) I also enjoy coming up with "outside the box" marketing ideas and promotions and am always looking for new ideas. With that being said I'm looking to all of you for advice today.

Here is my first question:

If my title and closing company was new to your area what can I do to earn your business? (Especially if you have been doing business with someone else.)

And here is my second question:

What is the best way to market my service to you so that you are aware of who we are and what we do in a way that you would appreciate?

Thanks for your help.

P.S. If any of you has seen a great marketing idea or has had someone do something that has really "wowed" you please let me know!

Foreclosure Numbers

2007-05-09T12:02:08Z

I thought some of you might find the following numbers interesting. Here in the local Memphis market we are helping lead the nation in foreclosures. It is mainly due to subprime lenders and unethical agents who lured buyers into homes that they should have never been purchasing. (That's my opinion at least) The numbers here are pretty staggering. In '06 there were two hundred more foreclosures than there were home sales in the Memphis metro market. I don't have the numbers next to me right now but if I see them on my desk I'll post them.

According to Realtytrac.com, there are currently 750 homes in pre-foreclosure, 2,135 at acution and 5,600 bank-owned homes. In the Cordova zip of 38016 (a nice upper middle class suburb) alone there are 79 in pre-foreclosure, 193 at auction and 577 bank-owned homes. While experts think that most of these foreclosures are due to cash-out refinancing with ARM's, I still say a lot has to do with agents who might should have worked with there clients to find a home priced more within their means. Agents have an ethical and moral obligation to make sure that their client will be able to afford a home. The Cordova area has experienced little to no appreciation in most areas over the past decade, with depreciation occuring in several areas. In this type of market an ARM makes little to no sense (I never approve of ARMS in any residential situation).

Because of the ARM's and having people purchase above their means you get into a never ending loop of stagnant or falling prices and foreclosures. In turn an area that was once very promising begins to go in a different direction. This means that it's harder for agents to sell. If agents can't sell then they don't have a job. That's why agents should watch out for their client first and foremost. If they do it will help them in the future.

Blog post timed out, uhhhhhh

2007-05-07T15:29:57Z

I just spent about 30 minutes on a very long post concerning my luck with getting new business from Active Rain. It went into detail on how by giving away help and information free of charge and without expectations of future business I've been able to grow from a one man shop to a multi-state title company serving North Mississippi and all of Tennessee with branches in Chattanooga, Memphis and soon be in Knoxville. I thought the post was fairly interesting. It touched on how we've been able to grow by just making ourselves available to agents, brokers and loan officers without making them feel obligated to use our servcies. However, the login-logout gods must be against me today. As soon as I hit the post blog entry button my post was lost and sent to never never land.

Oh well, so much for me being an educator today. I guess the one thing I should try to teach all of you out there who are reading this is that if spend a lot of time on a post, make sure that you copy it before hitting the send button. I've been burned by this way too many times now. I guess I should learn from my own mistakes.

Note: If you are interested in receiving my bi-weekly e-letter just send me an email with your address with e-letter in the title to jami@theferrellfirm.com. (please note that my firm website is still down while we rework it to make it the best online resource for wills, trusts and estate planning information on the web for young (20's-50's) families.) Our title company website is still up but will be revamped very soon to show our new logo and list all of the areas that we currently do real estate closings in. The site currently only lists Chattanooga, but we now serve Desoto and Tate Counties in Mississippi and all of Tennessee, including Memphis, Chattanooga, Knoxville and Nashville. We have offices in Desoto County, Memphis, Chattanooga and Knoxville is coming soon!

Downpayment Assistance Programs

2007-05-02T11:24:18Z

Downpayment Assistance Programs

It looks like some lenders are becoming very skittish concerning downpayment assistance programs like those provided by Ameridream and most notabley the Nehemiah Foundation. Although these programs are completely legal and allowed within HUD guidelines some lenders are beginning to ask mortgage brokers to buy back loans that were secured with these programs. I had a client today receive a letter from a large national lender requesting that they repurchase a mortgage from the lender that was originated almost 10 months ago. I don't see how the lenders will be able to do this but it is an interesting trend that everyone in the real estate industry will have to keep their eye on.

Let me know what you guys feel about these types of programs, both pro and con.

Interesting Real Estate Law Issues

2007-05-02T11:23:08Z

I've had several requests lately from members requesting that I inlclude the info that was on my other blog directly onto this blog. So without further ado..................

INTERESTING CASES

In the world of Real Estate Law when you own a regional title company you see interesting situations pop up all the time. Some are easy to fix, while others take a little more patience and often times a lot more time. On this blog I'll try to keep you guys informed of interesting situations that I run across on a day to day basis.

Here's today's example:

My title company, Old Colonial Title & Closing Services, got a call from a mortgage broker to see if we could close a loan for a lady who had owned a property jointly with a friend of hers. The lady and her friend had taken out a loan jointly several years ago, but now the friend has passed away and the lady wants to refinance to a lower rate. Here is where the problem comes in. When the two had originally purchased the property they had taken title as tenants in common.
Taking the title as tenants in common was the first problem. They had intended for the property to pass to the other upon the death of the first to die.
The second big issue was that the friend had passed away and did not leave a will. In legal jargon this is called dying intestate. For those of you who aren't familiar with wills and and such this means that the property goes to her family in the following order; first to any children, if none then to the parents, if none then to the next closest kin (there is a legal formula that each state uses to determine the next closest kin). If it is determined that their are no legal heirs then the property escheats (big word for passes) to the state.
The next problem was that when the friend died she supposedly had no living relatives, so noone probated her estate. The remaining lady had simply continued paying the mortgage.
Next problem, although she "supposedly" had no relatives we now find out that she gave up a daughter for adoption many, many years ago. Noone knows where the daughter is today, or if she is still even alive.
Because of all of these things we can't issue clear title to the property in order to refinance. The lady living in the house is forced to pay someone to attempt to hunt down any lost heirs and try to clear everything up, something that could be quite costly. In the meantime she has been paying on a house for over twenty years that she doesn't even own outright. In it's current state she can't even sell the property to someone else. The most that she would be able to sell is one half of the property.
The moral of this story is that if you purchase property jointly always make sure that you are aware of how the deed is titled. If the previous attorney had asked or taken the time to explain the consequences of how the deed was titled this possibly never would have occured. If the property had been titled as joint tenants with rights of survivorship then upon the death of the first person the property would have been fully vested with the survivor. Also, a simple will that left the property to the surviving owner would have been extremely helpful and could have resolved this situation.

downpayment assistance programs

2007-05-01T16:56:58Z

I have a new posts that looks at issues with downpayment assistance programs possibly coming under fire from lenders on my blogspot blog. The address is www.myrealestatelawyer.blogspot.com. Take a look if you use the nehemiah or similar programs in your business. It looks like lenders are going to be attacking them in the future.

New post

2007-04-23T15:22:21Z

I just want to let everyone know that I have put up my first new post on my blogger blog. You can view it at www.myrealestatelawyer.blogspot.com. This is the first post, but I should be updating it two to three times per week at minimum. We're also making progress towards getting the new website up and running soon.

New Business

2007-04-20T13:49:33Z

I'm pretty stunned right now. I joined this forum about a week ago and today I got my first title order in from a mortgage company out of the Northeast. They googled our area and my profile from activerain popped up. I'm amazed that I've actually got business off of something that I was just joining to share and gather information on. I never thought of this forum as a marketing tool. Maybe I should rethink a lot of the things that I'm doing and what I'm using this site for. Thanks Active Rain!

Warning about links

2007-04-17T15:52:36Z

I just wanted to give everyone a quick bit of information regarding my links. You'll find that a lot of my links and blogs are down right now or either don't have much info on them. That's because we are in the process of rebranding our image and having a complete web makeover. So please bear with us, things should be up and running very soon.

My blogger blog

2007-04-17T15:23:27Z

If you're interested in viewing my blog please visit www.myrealestatelawyer.blogspot.com I don't really do much (any) blogging on this site. I also have a link to my family blog on the right side of this page. If you just want to find a little more information out about me and my family then that is the place to go. But be warned it heavy on information about my little girl and is mainly a little diary for me to jot down what has occured as she grows up.