Archive for October 29th, 2010

The title insurance industry – set up for a fall

After numerous reports in recent weeks that they were going to hold banks’ feet to the fire about blighted titles resulting from faulty foreclosures, and shift the risk of loss onto the banks, title insurance companies have relented.  Apparently, amidst threats from the banking industry, title insurance companies are going to keep writing title insurance policies, as if the foreclosure fraud fiasco never happened. 


This is another sickening illustration how banks run the country, but let’s ignore that for a moment.  From a business perspective, this is pure insanity.  How can title insurance companies continue to issue title policies knowing about all the foreclosure fraud?  It’s like swimming in a fresh-water lake in Florida – sure you may come out of it okay a few times, but is it really worth the risk of getting attacked by an alligator? 

Next week, I’m going to post two motions I’m filing (in two separate cases) to vacate Final Judgments of Foreclosure.  In one, BOA sold the house to a third party purchaser, who obtained title insurance and has been living in the house for a year but is facing an unexpected eviction/loss of ownership.  Once those types of claims get filed on a regular basis (which is inevitable at this point), the title insurance industry will either: (1) collapse; or (2) be forced to change their business model (so as to shift the risk of loss from blighted titles via faulty foreclosures onto banks).

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