I have not done a personal blog on my site, but thought that this would be a good time to start. 

It seems just like yesterday my oldest daughter came into my life.  She is now 20years old and doing great.  In the spring she married an awesome young man which I was pleased to walk her down the aisle to.  They were young to be getting married, but they both had such strong paths they wanted to take together, it seemed unfair to keep them from attaining them.  He is in the military and is currently stationed in Missouri finishing up with his training before moving to North Carolina where he will be stationed.

They have done very well for themselves since their wedding.  My daughter moved up to Missouri and has been living just off base to where on his short leaves; they can spend some time together.  She has had no family or friends to spend the very vast times of separations with, but has kept herself busy and out of "trouble". 

I received a phone call from her the other day, and I was glad that I could not get to my phone and it went to voice mail.  I had had a hard day and when I listened to it, I melted.  It was one of those phone calls that a parent waits to hear.  She was going to be moving into their first apartment and had been shopping for some kitchen items.  The message was that she wanted to let me know how much she loved me and that she appreciated what I had taught her throughout her life.  She was very proud that she was able to go to a thrift store and bought plates, glassware, pots, pans and other assorted kitchen items for the low price of $12.00 for everything!  She had BUDGETED (not a word most young people know) to spend over 100.00, and she was excited and thrilled that she had some money left over!  I called her back and let her know who much that message meant and how proud I was of her and her husband.

Now for the GREAT news...this past weekend they called me and told me that I was going to be a grandpa!!!!  I couldn't be more excited...even though I still have two small wonderful girls, ages 8 and 4 that I still have at home.  My oldest couldn't wait to tell her sisters that they were going to be aunts!!!  The older one took it well, she understood, but the younger one said "I don't want to be an aunt...I squish ants and I don't want to be squished!!!"...she just isn't quite old enough yet to understand. 

We have settled on me being called "Opa" a good German name for grandpa, and my wife is going to be called "Oma"...we couldn't be more excited.  My oldest is going to take with her the crib we used for her younger sisters, which means a lot to her, and to me as well. 

It is going to be a great summer...I guess the inevitable is happening...I will be a grandpa before my baby goes into kindergarten.  She will more than likely be the only aunt in her class.

Thanks for letting me share.

I wanted to let the community of active rain be aware of a "new" fraud alert that we, LandAmerica, have addressed and are making arrangements for, to keep this from becoming a possible issue on the part of the buyer, the Buyers agent as well as for the title company.  Please make sure your title company takes steps as well.

In today's market where every dollar counts to both the buyer and seller, some people have taken to desperate measures.  With the onslaught of the lending practices over the last few years (and coming to a head now) "open ended" mortgages or "revolving lines of credit" were in abundance, especially in "2^nd position" behind a first mortgage.  As a title company we would receive a payoff letter from the lender and then proceed to close the transaction and then send in the payoff letter asking for the mortgage to be discharged and the account to be closed... this is what has changed and why.

In some instances consumers would take a draw (using checks or a credit type of card) against the line of credit just at, or just after the closing of the transaction, after they new there had been an inquiry for payoff placed. The title company would send in what they thought to be the "payoff" and to have the account closed.  Sometimes the lender would accept this, but then find out later a "draw" was put against the account and it would remain open and therefore a valid lien on the property affecting not only the title company but also the new buyer as well.  In some cases they would reject the payoff and notify the title company days after the transaction.  If either occurs, it is hard to collect this from the seller and the title company has to satisfy this transaction as a claim. 

This is why you close at a title company, to ensure stuff like this is handled in a professional manner...but...claims affect everyone.  If too many claims happen it can cause title company to raise rates, closing fees, or worse go out of business, especially if an Agent.

We at LandAmerica have initiated a new policy that we are requiring the "open ended mortgage" to be closed or suspended at the time we request a payoff statement from the lender and must be returned to us 5 days prior to closing.  It requires some extra papers to be signed prior to closing but hampers this from happening after the transaction is completed. 

It is my suggestion that everyone urge their title company to do this, for the safety of your buyer, seller and your business.  Everyone is looking toward their current clients for referrals.  If this type of "fraud" happens and your buyer is affected in any way, the chance of referral goes down, especially if the title company you use doesn't take care of the problem in a timely manner.

As I am traveling around the greater Grand Rapids area, over and over again I am told that "we have our own title company...and we are asked to use them" and asked to leave, and not even allowed to leave information behind of the offers and services that either I or my company have to offer.

Ok...I understand that there is a convenience factor here, and that the broker may be leading you to "our" (more like his/her) title company...but here is a reality I want you all to consider (if you haven't already).

Let's say one day the title company you use within your office is suddenly closed.  All you know are the people within that title company and you have "shut out" the other title companies within the area due to this affiliation.  I know that you have closed transactions in other title companies in the past, but have you built any kind of rapport with them?  Here are some questions I want you to ask yourself:

1.  Do you know another title company well enough to continue where "your" title company left off?

2.  Would your business suffer due to the time laps in getting to know another title company?

3.  Do you know who to turn to that will continue to make your closings go they way you want it?

4.  Are they (the title company) going to make you look good to your clients?

My friends don't go down this road.  You have worked to hard to build your business and to look to your past clients for referrals.  You all are FREE AGENTS and therefore can use other title companies in your area.  Who knows...they may make your experience and your clients better than the one you use.  It is my belief that any Realtor should have at least 2 title companies that they can rely on at any given point.  Ones that you know will "make you look good" to your clients.

If I can be of any help, please call me.  If not me, then please find someone you can use in conjunction with your "in house" title company.  Times are tough and things are happening all over in the market these days.  Don't be caught in the dark.

My Friends,

After a brief journey outside of the community of Grand Rapids working still in the title business, I am pleased to be returning to Grand Rapids.

I have moved to LandAmerica Lawyers Title in this transition with every intention of giving my customers the utmost in customer satisfaction and remaining with a leader in Title Insurance.

LandAmerica has a lot to offer it's customers and I will be sharing all of their expert levels of service with you via personal visits to my direct clients and abroad via this blog.

Keep informed as the information will be forthcoming soon!!!

Thank you for your continued success and your support.

Keith

Today I went to a seminar that opened my eyes to what exactly we do as title agents and settlement agents on behalf of the CONSUMER!!!  That's right the consumer.

We have a fiduciary responsibility to the Buyer, Seller and the Lender (or entity loaning the money) to ensure that the transaction is done completely, ethically and give free and clear title to the buyer. (Sorry guys, you noticed I did not say Realtors and Loan officers.)  We rely on Realtors and Lenders to survive, and we appreciate the business you give to us due to exceptional service etc. we offer to your clients, the Buyer and Seller.

I have the permission of Ed Rybczynski to post these sites on my blog in hopes that you will read and understand the importance of what we do as an industry.

http://title-opoly.squarespace.com/

http://www.squidoo.com/mortgagefruad/

Please review these blogs...and think about what could happen if you say "don't ask...don't tell...don't know".

I have received many comments and questions pertaining to my last BLOG asking questions of "right and wrong" for RESPA. 

Here is a link to RESPA that has lots of great information pertaining to RESPA guidlines. 

http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm

Keep the questions coming...we all can continue to learn and STAY OUT OF THE HEADLINES in bad press.

Are you receiving "free" marketing materials from your title company???  If so, you may be surprised to find out that it could cost you and your company a lot of money if the RESPA police get a hold of you.

It has been in the papers and journals over the last year.  Title companies around the nation have been put under the gun for what has been "created" in the market as "good business".  Well this business is being interpreted by HUD and RESPA as a violation of Section 8(a) of RESPA, plain and simple. 

Did you know that if a title company contributes to a broker and/or agent more than $25.00 PER YEAR in goods, services, entertainment, meals, MARKETING MATERIALS etc...it is a violation of this Section 8(a) code.  Fines are not being limited to just the Title company anymore...they (HUD) is now charging the receiver of the "gift" as well!!!!  THIS MEANS YOU!!!

Times are tough; especially in the Michigan market...I know this.  Marketing is still needed to get your name and/or exposure to the market place.  Pay a nominal fee and keep yourself out of the possibility of being fined.  If you don't want to pay for these services, then find another way of getting your name out there...here is a hint...Active Rain!!!

No one is going to be safe.  It is my personal feeling that with our struggling government here in Michigan, it is not going too far in the future until our government officials figure out one way to decrease the deficit would be to follow through with other states (Minnesota, New Mexico for instance) and start "governing" practices by title companies right here in our state and pull HUD/RESPA in and start fining title companies, brokers, agents for the Section 8(a) violations.  In two cases I know of...it was the State that received the monetary benefit of the lawsuits and the Federal government as well.

Change your ways my friends.  Don't let your luck run out and risk everything for those free postcards, flyers etc.  It could cost you more than just money!!!

Short Sale

Milton, MA--Horst and Inger contracted to buy this duplex from Pete, a local developer. The closing would be handled by David, an attorney. With the closing date near David realized this would be a short sale: After paying off the existing first mortgage, remaining sale proceeds ($58,000) would be insufficient to pay the balance due on the second mortgage ($81,000). The holder of the second mortgage was a local bank. At Pete's suggestion David called the Senior Vice President of the bank, who told him the bank would release the mortgage without payment since Pete was a good "developer" customer. The Good Customer--A favor to the seller was fateful for the buyers.

David closed the transaction without having received the bank's release. Unfortunately, as he would later explain, this deal closed at a time when his conveyancing practice was starting to grow, and he did not yet have in place procedures to follow up and get the bank's release.

In other words, oops.

Horst and Inger had an owner's policy from First American. When they later went to refinance, the old second mortgage showed up as still unreleased; and since it was unreleased it now appeared as a first mortgage.

Horst and Inger made a claim and First American contacted David to get the release.

But it was too late. Things had changed at the bank. Mainly, the bank had failed and was taken over by the FDIC. So now we couldn't get a release. Worse yet, Pete filed bankruptcy and went out of business.

The Company paid $80,823 for the elusive release, plus legal expenses of $9,204. Most of this was later reimbursed by David's malpractice insurance.

MORAL: Title companies are frequently asked by real estate investors and developers to "write-over" an existing mortgage with the promise of a payoff to come from some other transaction.

This is pure risk, and in some states (principally Texas) the practice is regulated by law.

Since this risk was not authorized by First American, it was David who ultimately paid for the bank's favor to its "good customer."

In the State of Michigan a Public Act (NO.44) was effective as of July 14^th, 2003.  In this Act, it contains provisions that allow an owner to affix a mobile home/manufactured housing unit to real property by means of an Affidavit of Affixture.  In other words, the unit is changed from personal property to real property.

To become a fixture to real property the manufactures housing unit must have its wheels, axles and towing hitches removed, be permanently attached to the land, and connected to a septic tank, sewage system or public sewer and other utilities.

The reason behind the need for the Affidavit of Affixture is this.  Prior to 2003 if a mobile/manufactured unit was included in a bankruptcy case, the mobile/manufactured unit could be sold at auction to pay back debtors in the bankruptcy.  This was done and left the mortgage company left holding nothing but the land and possibly a hole in the ground...not good.  This affidavit converts this mobile/manufactured unit from personal property to Real property...so it can not be sold at auction due to bankruptcy.

The Affidavit of Affixture form can be downloaded as per this link:

http://www.michigan.gov/documents/dleg_bccfs_mhaffida_134013_7.pdf

After completion, the owner may send the form to:

Michigan Department of Consumers and Industry Services

PO Box 30255

Lansing, MI 48909

(Phone: 517-241-9317)

Or for faster service you may overnight completed form to:

Michigan Department of Consumer and Industry Services

2501 Woodlake Circle

Okemos, MI 48864

NOTE: overnight packages are usually processed and returned in 7 to 10 business days. 

Either way you submit you are required to include an additional self-addressed stamped envelope or a completed overnight slip/envelope for the approved affidavit to be returned.

LOST TITLE REPLACEMENT

This is the procedure as we understand it currently.  This is subject to change without notice from the Michigan Department of Consumers and Industry Service.

When the current owner of a mobile home has lost the title, a duplicate will need to be obtained from the Secretary of State.  A mobile home title application can be obtained at any branch office of the Secretary of State.  They have records for the last 10 to 12 years (sometimes more) and can issue a duplicate title.

When title in the current owners name is lost and there is no record at the office of the Secretary of State, or a transfer to the current owner was not made, proof of ownership must be submitted with the mobile home title application.  This proof may be on of the following:

•1)   Property tax receipts in the name of the applicant.  Along with the receipt, information is needed from the assessing jurisdiction that the mobile home is part of the property.

•2)   A court order establishing ownership.  The year and make or VIN must be included in the court order.

•3)   A surety bond (Form TR-122).  Mobile home surety bonds are posted for twice the value of the mobile home for 5 years.  After 5 years the bond is returned to the insurance company if no claims were filed.  (The owner can sell the mobile home before the 5 year period is up.)

The following is the procedure for obtaining a title using a mobile home surety bond:

•1)   The applicant will need to provide the mobile home's VIN.  If a VIN cannot be found, a VIN number will need to be assigned.  Contact the Secretary of State for the procedure to assign a VIN.

•2)   The applicant submits a properly completed TR-122 mobile home surety bond form. (Available at the Secretary of States office). Also submit the bond company's authorization to issue surety bonds.  This document shows the company's restrictions for issuing bonds.

•3)    Complete a TR-34 certification statement explaining from whom, how, when and where the mobile home was acquired.  The certification must include a statement which confirms inspection of the VIN (e.g. "I have examined the serial number on this mobile home and it is number_____.)"

•4)     Any lien shown on the title record must be terminated.

•5)     Complete a mobile home title application (Form S-110)

•6)     A Fee of $90.00 will be charged.   When applicable, a use tax fee may also be used.

NOTE:  sometimes the Secretary of States offices may accept information other than that outlined above as proof of ownership of the mobile home and be willing to issue a vehicle title.  Since considerable expense is involved in some of the above options, it may be worth taking all the information available to their office to see if it may be sufficient.

IF THE DEALER YOU BOUGHT IT FROM GOES OUT OF BUSINESS

The Manufactured Housing Division can assist in obtaining a title when a person who bought a mobile home from a dealer did not receive the title and the dealership is out of business.  You will need to provide some type of proof of purchase, such as:

•1)    Cancelled check

•2)    Money order purchased by the owner

•3)     Purchase agreement

•4)     Financing records

•5)     Bank records

You will also need to obtain a certification statement showing the correct VIN number on the mobile home.

Call the Manufactured Housing Division at 517-241-6300 for assistance.