Michael's Blog

To Be Successful, You Should Always Be "On the Clock!"

Michael Figurski (Insight Settlement, LLC) — Mon, 30 Jun 2008 08:37:04 -0500

Last week was a very busy week. Finally, Friday had rolled around and all I wanted to do was relax, have a nice dinner and perhaps a couple beverages. My wife and I went to Benihana. Since we were a party of two, we were sat with a group of six who were apparently celebrating a birthday.

Throughout dinner, my wife and I are talking about work and trading war stories and at one point, out of the corner of my eye, I notice that one person from the other party is looking over at me. Obviously, something I said had caught his attention. I wanted to say something, but I thought maybe I mistook his reaction and I didn't want to interrupt their birthday dinner.

As dinner wrapped up, I noticed he was looking in my direction again. Just as I was about to say something, he said that I looked familiar and he asked me where I work. I told him and as it turns out, he is a realtor for a pretty prominant agency here in the Pittsburgh area.

There I was, 9:30 at night. A few hours earlier, I just wanted to relax and try to forget about work for awhile, but before I knew it, I was putting a few more hours in! It just goes to show you, when you least expect it, you may find yourself "clocking in" for some overtime!

Please share any stories you may have as far as making business contacts in different places.

Come Golf Against Diabetes!!!

Michael Figurski (Insight Settlement, LLC) — Thu, 05 Jun 2008 08:43:11 -0500

Please come and join us as we host a golf outing to raise money for the American Diabetes Association. The outing will be Saturday August 9^th, 2008 at Ponderosa Golf Course in Hookstown, PA (about 30 miles outside of Pittsburgh).

The cost is $75 per golfer and that includes 18 holes w/cart and dinner. There will also be prizes for the longest drive, closest to the pin and of course, the winning foursome. We will also be raffling off some great prizes. All proceeds will benefit the American Diabetes Association.

Tee Sponsorship is also available. You can make a contribution to have your company advertised at one of the 18 tee boxes on the course.

Come show your support and have a great time! For more information, please call Mike Figurski @ 412.881.2800. Registration ends July 31^st, so call now to reserve your spot. Thank you very much!

Well, I lost another one.......OR DID I???

Michael Figurski (Insight Settlement, LLC) — Mon, 02 Jun 2008 13:09:43 -0500

This morning I told you all how I lost another deal to the strong-arming of a realtor with a JV title company.

I replied to an email I received from the buyer stating that I understood and that I would still be willing to help in whatever way that I can. I told him to be careful and watch for a high settlement fee or notary fee as I have recently seen some crazy fees on HUDs.

I immediately get an email back from him stating that now all of a sudden they are going to charge him a really high settlement fee. He is now extremely mad because they seem to be adding fees here and there whereas, I told him everything up front. He is now calling his agent and telling them to cancel title.

We'll see what happens, but I am hoping that the good guy will finally win one here! Wish me luck!

Well, I lost another one.......

Michael Figurski (Insight Settlement, LLC) — Mon, 02 Jun 2008 08:57:10 -0500

I got a call on Tuesday last week from a friend of mine that we closed a deal for a few months back. One of his friends from work was buying a house and he mentioned my company. Early Thursday morning, I get a call from the buyer. We discuss some details and he said that he would like to use me for title.

Later that day, I called his realtor to introduce myself and ask for a commission statement. She began to question when I would have the title ready. I told her I would have everything ready by tomorrow morning. She then told me she would send the commission statement over a little later in the afternoon.

About 4:00 on Friday, I get the following email:

Mike,

My agent called me, and she said the title company has all the paper work done, and if i want to switch at this point, they would charge me for processing fee...
I guess i would have to stick with them for this deal. Thank for your time on this. I appreciate it.

Alex

I realize that the bulk of the members on ActiveRain are realtors, and I am not slamming realtors in general however, there are several that are absolutely irritating me over things like this. Have people forgotten that the buyer may choose WHOEVER they want for title? Then you claim that you will charge a "processing fee" when I will guarantee that you did not ask the consumer if they had a title company that they wanted to use. I am sick and tired of people trying to strong-arm and persuade the consumer toward their JV.

Thanks again for letting me vent!

CAUTION!!! FORECLOSURE SCHEME!!!

Michael Figurski (Insight Settlement, LLC) — Thu, 15 May 2008 09:24:09 -0500

With the number of foreclosures going up and up, so does the number of people who want to prey on those in troubling times. I actually saw this particular scheme several years ago up in New York. Last week, I attended a continuing education seminar and they talked about it again, so I figured I would pass the knowledge along.

This scheme obviously takes advantage of people in foreclosure. Here is the rundown. Someone calls the homeowner, states that they can help them get out of foreclosure, repair their credit and keep their home. They then have the homeowner execute a deed and a rental agreement. This new buyer takes out a mortgage, and collects a rent payment from the homeowner. This rent payment is usually significantly larger than that of the actual mortgage payment. The new buyer will make the mortgage payment and pocket the difference. From this point, I have seen several different scenarios;

1. The new buyer takes out a 2nd mortgage, maxing out the equity and then disappears.

2. The homeowner defaults on the "rent" payment and the new buyer moves to evict.

3. The homeowner is given the opportunity to buy the property back however, the new buyer will not deed the property back without an outlandish consideration. This renders the original homeowners ability to get financing impossible. I have seen a deal where the new buyer wanted $100,000 on top of the existing mortgage balance.

The good thing is, this scheme should be pretty easy to identify. Here are the red flags:

1. Purchase transaction where the current homeowner is in foreclosure.

2. The proposed buyer will be titled as an LLC, usually taking on the address of the property (i. e. 123 Main St., LLC)

3. The sales agreement is accompanied by a rental agreement.

Hopefully, you will never come across this situation. If anyone else has seen this occur, please add your comments, the more information we can spread, the better!

Do you mind if I vent a little......

Michael Figurski (Insight Settlement, LLC) — Fri, 18 Apr 2008 15:45:56 -0500

We are closing a Fannie Mae cash deal tonight. These people are buying a 3 bedroom house for $12,000.00 They have declined obtaining an Owner's policy for title insurance, so basically all my firm is making is the "Settlement Fee". Do you know, the buyer is fighting tooth and nail about our minimal settlement fee.

YOU ARE GETTING A HOUSE FOR $12,000! You can't even get a motorized scooter for $12,000 these days. What could you possibly have to complain about. If I was charging you $1,000 or something I would understand, but I am talking about $250. UGH!!!

Sorry, just had to let that out. Thanks for letting me vent!

A bad day of golf.....

Michael Figurski (Insight Settlement, LLC) — Fri, 18 Apr 2008 15:32:49 -0500

A bad day of golf is better than a good day in the office!

Now that the weather is warmer, I am excited to get out and start golfing again. The only thing is, I live in the South Hills of Pittsburgh and I always end up going to one of the same 3 or 4 courses. I know of a ton of courses, but I don't always know if they are good or not. Does anyone have any suggestions for a good golf course around Pittsburgh?

Also, if anyone is ever looking for a partner to go golfing with, let me know. I should be honest however, I am not the best golfer. I usually hover around the 100 mark for a round, but I love getting out there regardless. Thanks!

An ActiveRain Gathering in Pittsburgh??

Michael Figurski (Insight Settlement, LLC) — Mon, 14 Apr 2008 10:31:31 -0500

I was reading about the ActiveRain gathering they had in Philadelphia and it looks as though it was a great success and I am sure it was a lot of fun. I am contemplating putting a gathering together for those of us in and around the Pittsburgh area. Right now, I am just looking to see who may be interested.

Thoughts?? Suggestions??

The Benefits of a Small Title Company

Michael Figurski (Insight Settlement, LLC) — Thu, 03 Apr 2008 10:58:25 -0500

My partner and I used to work for a large national title company who has recently announced that they are closing their doors. I live in Pittsburgh and there are no less than 5 or 6 large title companies who have ceased operations here.

When I started at that national title company, their entire business was small mortgage broker shops. We were closing 500 - 600 loans a month. Then new ownership came in and all they wanted was to land the big fish client. They started to lose their customer base, their foundation. At that point, my partner and I realized that this isn't the way to run a title company and we decided to start our own. We are a small title company and here are the benefits to using a small title company;

PERSONAL SERVICE - you will always talk to the same one or two people, which will build strong relationships and these relationships are the foundation to a successful business.

PERSONAL INVESTMENT IN YOUR BUSINESS - as I mentioned, my prior employer used to close 500 - 600 deals per month. If you had a deal that required a little extra effort in regards to title, they would just walk away from the deal. With us, we need to close every deal that we can and if that means we have to put extra time and effort into it, it is just that much more worth it when the deal finally closes. A company closing hundreds or thousands a month doesn't really care if they lose a client giving them 5 to 10 closings a month whereas the same client would be a huge asset to us.

NEVER GET THE RUN AROUND - we would all like to think that everything goes smooth and that there are never any problems, but that is not realistic. Things happen! If you are ever upset about something, you call the large title company and you never get the same person or you get their voicemail and you probably do not receive a return call. With a small title company when you call, you talk to me or my partner, that's it! And if you are upset, we are going to work to make it right because we certainly cannot lose a customer.

These are just a few things that you can expect when using a small title company (hopefully mine)! Best wishes to everyone out there for continued success!

Fannie Mae and Freddie Mac Go Jumbo!

Michael Figurski (Insight Settlement, LLC) — Thu, 13 Mar 2008 13:42:56 -0500

Last month, President Bush signed into law HR 5140, which is the Economic Stimulus Act of 2008. Many people are excited about this bill because it will mean that they receive a check from the Government in the amount ranging anywhere from $300-$1200. The thought behind this bill is that people will take this money and spend it, thus stimulating the economy. Because of another provision in this bill, the mortgage industry may also see a boost. The stimulus bill increases the conforming loan limit in high-cost areas. FHA programs can now purchase and/or guarantee loans in high-cost areas up to 125% of the median home price up to a limit of $729,750. The previous limit was $417,000. In areas not designated as high-cost areas, $417,000 will remain the limit.

So what does this mean?

Up until this point, any loan with a balance at or over $417,000 was not eligible to be purchased and/or guaranteed by Fannie Mae or Freddie Mac. Lenders who are providing these "jumbo loans" rely on these loans being purchased on the secondary market. Many investors are skeptical and often times do not want to purchase a loan on the secondary market that is not backed by the FHA. The end result is that the lenders have to carry and maintain these loans on their books. Its when these loans get purchased that the lenders essentially free up some capital and can fund new mortgage loans. This stimulus may provide the jumbo market with some liquidity that will keep the market moving.

Southwestern PA Title Company Woes

Michael Figurski (Insight Settlement, LLC) — Thu, 13 Mar 2008 13:22:15 -0500

As many of you probably know, Pittsburgh is the mecca of title companies. LSI was the first one about 50 years ago and from LSI spawned ATM, ServiceLink and National Real Estate just to name a few. In the past six months however, a large number of Pittsburgh title companies have closed their doors. Express Financial was one of the first ones to close up shop. They left about 100 people out of work. There are several other medium to large title companies closing in the next few months (I won't mention names because it is not my place to do so). The title and mortgage industry has been getting enough bad press lately and Pittsburgh is getting it twice as much because of these layoffs and closings.

I wanted to make this post however, to let everyone know that there are still really good title companies in Pittsburgh and the market is showing promise. I started my company about a year ago and I'll be honest, six months ago I though that I may have made a mistake. However, in the last few months, we have seen our business grow and we are not showing any signs of stopping.

I think a lot of the larger title companies lost their focus. Title insurance is title insurance. And sure, the large title companies can treat your office to pizza once a week and can load you up with merchandise, but I believe that they forgot the one thing that got them to where they are. CUSTOMER SERVICE! The truth is, you are more likely to give business to someone that you know, like and trust. Customer service is the foundation for that.

Please feel free to share any stories and/or comments you may have. Thank you!