COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

We all know the expression about the light at the end of the tunnel being an oncoming train. Title agents and title carriers are in the middle of a tunnel intersecting with other tunnels each with a light of an oncoming train. In a word, they don’t have nearly enough money to pay off all the claims since they issued multiple policies on the same crap. These title policies, overall, may total as much as $15 trillion or more.

They insured the homeowner, the “lender”, the aggregator of mortgage loans (who didn’t have them), the trust for the pool, the third party beneficiaries (investors) of the pool etc. “How do I owe thee, let me count the ways.” Their agents closed most of the 60 million transactions that were registered on MERS and many others as well.

Any title examiner who now looks at the title record, especially in view of the IBANEZ Massachusetts Supreme Court Decision, see also ibanez-decision-analyzed, cannot issue a commitment letter much less a policy without adding exceptions to the schedule that includes virtually all transactions relating to the mythical securitization infrastructure whose documents provided the blueprint for action, copied from the REMIC statute, part of the Internal Revenue Code. The fact that these parties never followed the blueprint or the law is almost besides the point.

These title companies were suckered in by the same tactics used with the rating agencies and reputation of the megabanks. The problem is that it is the job of the title company to know, regardless if someone is lying. And it stretches any reasonable belief system to think that these closing agents doing about 1 closing every 20-30 minutes, did not know that the money they were getting as escrow agent or closing agent wasn’t coming from the party disclosed as lender. So besides the “Should have known” criteria it is obvious that the title agents and presumably the title examiners, and therefor the title companies had ACTUAL knowledge of the fraud.

For over three years I have been saying that this boils down to a simple title problem and that a lawsuit to quiet title is the ultimate answer to the issue. The title record is completely corrupted with wild deeds. Just because they have title insurance doesn’t mean the title is good — quite the contrary it just means the title companies are liable for whatever happens after that. And so it is possible that the agents in the mythical securitization chain have another bonanza on their hands — getting paid yet again, for the fifth time, on the same transactions.

Meanwhile none of these payments get credited to the investor who is the creditor and lender, thus the obligation is not reduced by the payments, thus the borrower is held to owe more money than the lender actually lost.

Now the question is what do they do about people who want title policies on “new transactions.” If they issue the exception then they are admitting that the original policy was wrong, whether they wrote it or not. If they don’t, they are out of business because most homes are effected by this monstrous corruption of our title system.


see title-insurance-view-from-the-other-side

I will let you read the following journals to decide what you think about this mega Title Insurance Industry….


Here is another group that is critical of this former group…


29 Responses

  1. Let me show you the letter North American Titles Attorney wrote me chastising me for choosing my Lender, America’s Wholesale Lender. Excuse me……I did not choose anyone. I was told who my Lender would be. The letter attacking me made me feel that North American Title knew of the fraud committed against me and they were angry because I had it figured out.

  2. Pretty! This has been an extremely wonderful post. Many thanks for providing this info.

  3. Gary H,

    Absolutely — how can you have quiet title — when there was fraud in the original mortgage title?? And, title companies (and companies who acted as agents for them) — are not complying. Many reasons why they ARE NOT complying — only one answer — Fraud..

    Not addressed.

  4. […] SEE  title-companies-and-agents-brace-for-worst-year-of-their-existence […]

  5. Dave K.

    I have the eBook but have not yet reached section 12, taking it all in slowly.

    One thing struck me in your post below…..

    “The title company, as you will read in Section 12 of the eBook, can actually HELP you establish prima facie evidence of chain of title gaps.”

    In my case the original title company, Town and Country, was directly associated with the original servicer, Ameriquest (BK’d), who was also a party to the PSA with Countrywide (acquired by BOA), who at that time had it’s own title company / affiliate Landsafe Title. These two title companies are the only ones associated with my recorded documents…..yet I think there is a hugh conflict of interest involved and any establishment of prima facie evidence would Not be forthcoming respective to chain of tile gaps.

    As of this writing I have Not been able to fully establish if either title company was divested, renamed or…..??? As it stands right now I also don’t believe either one would be “helpful” due to my civil lawsuit which is in part based on chain of title.

    Dave, please understand that I’m Not disparaging your words or opinion, just pointing out circumstance from my point of view.

    I’d like to mention one more thing regarding legal representation from my perspective in CA. I trusted and “over paid” ex-counsel for way to many months prior to my case being damn near dismissed. I will say this to your advice regarding “find a knowledgeable attorney”…..you are very correct, but I must add, if anyone is willing to put forth the effort in time to research law books, codes, court procedure, case law (look for the “small issues”), and sites such as this one, Thanks Neil, you may be ahead of the game. A lot of real information can be gained in a short period of time from those participating and posting…..keep up the good fight!

    Think of it this way, you are the only client and you are responsible for your own fate and not a 350hr. do nothing attorney filling out time slips for the herd of people entering the office door.


  6. Ron

    You are accurate in many points. Agree — only once. But — much fraud in that one time. Fraud includes withholding of mortgage title documents to SPV trustee (this is for a reason), payment of insurance — on loans falsely placed in default — and payoff checks on prior mortgage gone—- who knows where.

    Who cared about the homeowner??? — No one. Why?— targeting to begin with — if you could not pay high payments on inflated rate due to inflated home appraisal — they had you nailed anyway – foreclosure.

    Does anyone really think that missing/false documents was CARELESSNESS??? No way.

    Once had official say to me that foreclosure is not intention now (he falsely believed mods were the goal) — told him — but foreclosure was the goal at origination — that was the goal back then. Oh — was a nice hefty profit — if all worked as planned — and still today — due to sale of collection rights for pennies on the dollar. All about money — and deregulation allowed for smooth sailing — until the ship sunk.

    And, you never know the face of your current creditor.

    No one was watching through all..

  7. So much ignorance about title insurance expressed here, it’s hard to know where to begin. For the people who want title insurers flattened or who think they are evil. Don’t buy an owner’s policy next time. Roll the dice. And see what happens.

    Why did title agents close their doors? Because they are going broke for lack of real estate transactions. Wouldn’t Walmart close its doors if customers stopped coming in?

    The bloggers main point that title insurers have insured each transaction so many times is completely wrong. There is a policy for the owner and the lender. Only one lender can recover. Not 6.

    I am always disheartened to see articles or blogs about title insurance in which the bloggers or commenters obviously know so little about what they speak of. Title insurance is one of the best deals going for consumers for many reasons.

    It is not helpful to fail to understand something and then spread the misunderstanding publicly, as has been done here. A little bit of research will show that title insurance is a claims AVOIDANCE line of insurance. Like boiler insurance, where boilers are inspected to make sure they will not blow up and claims are very low (thank goodness!), title insurance operates in much the same way. Do you know people who want a title claim on their house? Their most important possession? Of course not! So title insurers search the title to property, as well as numerous court and other records to discover AND FIX problems with the title BEFORE closing. In fact, in about 40% of all transactions, a problem is found and identified prior to closing. That means the claim is resolved beforehand and the consumer never even knows it happened! What a great service!

    Please reread what I just said so that it’s clear. The majority of claims happen before the closing because problems are identified and fixed so that consumers will not have to suffer through most claims later on as homeowners. Many of these claims involve recent problems with title, such as lenders who failed to release mortgages of record. Others pertain to foreclosure issues, tax problems or other types of liens. Most are found, fixed and resolved before closing.

    What title insurers do is the equivalent of the homeowner’s insurer cutting a tree branch before it destroys the roof of the house or the auto insurer fixing a car’s brakes before they go out and cause an accident. They save heartache, trouble and avoid most claims. I would argue that is more valuable to consumers than other types of insurance that allow the claim to happen. Most of the premium goes into this claim avoidance and curative work which is performed, usually, by the title insurance agent, who gets most of this premium as compensation for the important work performed. That is why there is less paid out with title insurance than other lines. Which way would you prefer? Put less into claims avoidance and let the claim happen to most American families or spend most of the premium dollar to fix the problem up front and help people avoid a title claim? It’s a no-brainer.

    Moreover, title insurance is not paid annually like other lines of insurance. It’s paid only when you purchase or refinance a home. Let’s say you pay $1,000 for title insurance and $1,000 a year for homeowners and auto. You own a home for 15 years. Over that time, you pay only $1,000 for title and maybe up to $100 gets paid out in claims for matters not identified and fixed prior to closing. So you spent $900 to resolve most of the title problems beforehand, which was good for 15 years or $60 per year. Now look at what you would pay for auto and homeowners. For 15 years, you would pay $15,000 to each company and they would pay out (at 60%) $9,000. (This is generous since many people (like me) never had a claim at all on homeowners and only minor auto claims). In any event, the homeowner wound up “losing” $6,000 over 15 years which comes out to $400 per year. Title insurance is the better bargain.

    Furthermore, and this is the clincher, you may not know that the existence of title insurance saves homeowners approximately $16 billion per year in the United States in lower lending costs (per information put together by the American Land Title Association). Because of title insurance, US lenders have less risk and are willing to give mortgages at lower costs than in other developed nations where title insurance doesn’t exist. This is an added monetary benefit of title insurance. I could go on and tell you how title insurers collect hundreds of millions of dollars in child support and delinquent tax and other payments, but I think you get the idea.

    Apparently, some people would prefer that title insurance doesn’t exist and that nearly 50% (remember problems are found in title in 40%of all transactions before closing plus another 5-10% later) of homeowners have a title problem that could take thousands or tens of thousands of dollars to fix (plus attorney fees and litigation costs!) and put ownership of consumers’ homes at risk. They also want lenders to assume the risk of a title defect, thus forcing lenders to raise interest rates on every loan. The result would be that consumers would pay far more for mortgages than they would ever save by not paying for title insurance. Throw in the risk to 50% of consumers’ homes and you have an expensive, gut-wrenching and potentially devastating hardship created for American families. You still think title insurance is not valuable?

    By Dave Krieger

    Most of the judges and foreclosure attorneys on both sides are watching this case carefully. It should be noted here that former civil rights lawyer and 30-year trial litigator Gwen Caranchini, no stranger to the blog sites by any means, had her best day in court in years in her case against Bank of America, MERS and an alleged “substitute trustee”.

    On Friday, January 5, 2011 at 1:30 p.m., Caranchini showed up to a court hearing in the Jackson County Circuit Court on Friday. The trustee, who in this particular case is going it alone (as Bank of America and MERS removed the initial claims Caranchini filed to federal court) pro se, filed a motion to dismiss her breach of fiduciary duty claims and attempted wrongful foreclosure claims as well as a motion for sanctions for filing the claims.

    The judge in this case has known Caranchini for some 30 years. Even the judge was stymied by the arguments Gwen was proffering, admitting that she felt as if she was “in kindergarten” when it came to understanding the issues and terms involved in the discussion. The judge set over two hours aside, in part to get educated, as Caranchini came to court loaded with documentation, including the slip order from the Ibanez decision, which she handed a copy of to the judge, who read it at the start of the hearing.

    The problem in Caranchini’s case … the documents on file in the Jackson County Recorder’s office that were relevant to her case “did not make sense” to the judge; as compared to much of the recordation issues in Ibanez. According to this author’s research, which is used to craft chain of title assessments for review by title companies and attorneys in their preparation for litigation, when the chain of title was properly demonstrated to the court, the judge “got it”.

    The judge in this instance looked carefully at the stamps (of the signors), the dates, what the documents were proffered to be … and smiled; she had never had this pointed out to her. Caranchini then discussed how Chicago Title, who issued the declination letter which is incorporated into Section 12 of the book “Clouded Titles”, found her chain of title to be irretrievably broken. The judge then inquired as to whether Chicago Title would offer up an expert to testify, to which Caranchini answered in the affirmative.

    To prove a point about the differences in arguments … Caranchini then went through some of the issues involving securitized loans; the judge did not understand the importance of it. The argument then got down to the note (which you knew it would at some point). The judge looked at the trustee and asked him if he had the original note. Then she asked him if he ever had the original note. Then she asked him if he had ever seen the original note (which he previously attempted to foreclose on). Then she asked him whether the alleged lender had the original note. To all of these inquiries, the trustee responded … NO!

    [In this case, the appointment of successor trustee was filed 13 months BEFORE the assignment proving the alleged lender was filed; a trust whose last 10-K was filed in March of 2007!]

    The Court then granted the trustee’s motion to dismiss the wrongful foreclosure from the lawsuit; however, the trustee’s motion for dismissal of breach of fiduciary duty was denied!
    Then the judge urged the trustee that he should join in a settlement conference scheduled by a federal magistrate in U.S. District Court for the Western District of Missouri in Kansas City, which set for February 18, 2011.

    Then the judge denied the trustee’s motion for sanctions against Caranchini, saying, “these are developing claims and we have to let them develop”, allowing Caranchini thirty days to amend her petition and to bring the quiet title and declaratory judgment claims back into court that had been previously removed, as the Court indicated they needed to be put back into the litigation in state court to be joined with the trustee. (The trustee was not a party to the action when the quiet title and declaratory judgment counts were removed.)

    From Caranchini’s own observations, she is totally convinced that the judge understood the issues involving agency, quiet title, declaratory judgments, breach of fiduciary duty and negligence (some of which have damage claims attached). According to Caranchini however, the judge did not understand all of the terms and arguments involving securitization and essentially admitted that on the record.

    This goes back to the problems the author has previously written about regarding what is fundamental in proving agency and what is not. Education of the Court in pointing out the flaws on your recorded documents is extremely important. The declination letter is also on the record. The Ibanez decision in this instance proved to gain impetus with the Court as well as to its applicability regarding proving agency. The judge ordered deposition of a Chicago Title expert witness (That’s part of discovery folks!) by the end of March and set a trial date for October 24, 2011 (unless the parties settle beforehand). Needless to say, the trustee wasn’t happy. He’s still a Defendant in the lawsuit. Not having even seen the Note didn’t sit well with the judge either. You can probably surmise where this case is headed.

    Two days later, Caranchini received an Order in the mail from another judge in Jackson County Circuit Court, where she had a motion for temporary restraining order against Bank of America et al: “Now on the 5th day of January, 2011, the Court takes up and considers Defendants Bank of America and BAC Home Loan Servicing, LP’s Motion to Dismiss for Lack of Subject Matter Jurisdiction and Request to Quash Hearing on Plaintiff’s Request for TRO. After being duly advised on the premises and for good cause shown, the Court hereby denies the same without prejudice. IT IS FURTHER ORDERED that additional proceedings be STAYED due to this cause pending in federal court and the possibility of remand back to circuit court. IT IS SO ORDERED.”

    This would certainly cause the author to surmise that there is the possibility for a remand of the original case from the federal court back to the Jackson County Circuit Court, where the action to quiet title in the county in which the property is located is supposed to be heard. Because there are both state and federal judges involved, it would also probably be safe to assume that both state judges are in agreement on the procedural aspects of this case and that they’ve also had at least telephone conferences with both judges in the U.S. District Court. Look for a lot of action on this case in February (the case was filed last April). Look for possible settlements and an agreement to allow quiet title with the purchase of homeowner’s indemnity coverage! Caranchini is following my suggestions as I outlined in the book “Clouded Titles”.


  9. Steve,

    Also try the state Banking and Insurance Commission. Rarely do state agencies investigate — but the more complaints they have — the more pressure to investigate.

    The title company who agent acted on behalf of — should also have documents. But likely they will tell you know. Think this is big area that is not being investigated – and should be. Almost all PSAs require a copy of mortgage title. If mortgage title is not submitted to trustee — the loan COULD NOT be included in trust. Finding that in many cases — was not submitted. This questions whether or not insurance fraud was used — and whether or not loans were classified as “non-compliant” — and never accepted by trust – even if they show up on a mortgage schedule. And, many borrowers do not know — they may have been falsely placed in default — before they even defaulted. Also believe may have been mechanism to not pay off prior mortgage loan by a refinance.

    Much investigation needs to be done in this area.

  10. Anonymous and Pelucheven,

    I meant to say the local offices Stewart and Chicago Title in my area closed its doors. Just an observation in 2008. The corporate head quarters are still there, which is where I contacted to request loan docs.

    The loan origination final signing took place at the Title office but all copies of loan origination in my possession are in blank, no notary, no signatures, along with pages missing that I did not know about until finding this website. Your right about who oversees the Title companies. I knew this and already had a complaint filed with the California Department of Insurance and talked with an investigator yesterday. He asked what is it I’m looking for. Any and all loan originals please. He is now sending me a request form but do any of you know what additional forms or information to ask for when it comes to the Titles.

    I may have to agree with Judge Hunt. When the pretender lender wouldn’t release any loan docs., the Title companies have nothing to little on file, and the loans never made it to the pool. Well then I am a leprechaun. Someone defrauded, forged, foreclosed, and stole me pot of gold.

  11. pelucheven

    You write — “most title and escrow firms are just title insurance agents and are regulated by your stete bureaus of insurance.”

    Absolutely correct!!!! You know what you are talking about.

  12. I have a question.What happens if you get title ins. at time of closing on a refi.and a month later some other title co. comes back and does a substitution of trustee /Deed of Reconveyance and its not your title co. and it’s signed by the notorius Brian Bly? I would really appreciate any input.

  13. Funny, I called my Titlle agent today and he said that owner’s policy’s only cover want happened before the transaction and does not protect you if fraud on your title say wrongful forclouser happens. But your saying that all the wild deeds if you will in the title chain are able to to claimed as fraud. So how do you claim for fraud on the title after the title policy is purchased and supposed to be good for at least 10 years. I think he gave me some double talk.

  14. I do not trust any big title insurance companies… They are like a wolf defending hens. They are FOR PROFITs not FOR your side to protect you. I am just telling you from my experiences. Too Big To Fail Categories like Major Banks.

  15. For those who are having trouble finding your documents, and whose title companies closed or went bust in BK. Make sure you still include them in your actions to quiet title, they never put your name down in their schedules for their BK either. Search the State Corporate Commission Records and find out who are their officers. Include them in your Action to quiet title as well. Research who your actual title insurer is, one thing is the agent who sold you the title insurance policy and another who the underwriter and holder are.

    There are usually a giant state title clearing house and that clearing house contracts with an out of state underwriter.

    Chicago Title usually has local offices, at least that is the case in Virginia. Their local office was their clearing house or master broker and their Chicago corporate Offices were working as their underwriters for the majority of the policies.

    Make sure you find out who all these players are since they all have their hands dirty as well. If you have already lost your home to foreclosure and it was sold to some one else. It is very likely they were given a new policy with a bunch of exemptions, that is a tel tel sign your title was bad!!!. It does not hrt to talk to the new owners, it is in their best interest to now that they bought something and they were told something else.

  16. “Thanks” TMT, the links are a treasure trove of info…not particularly hopeful info but….we’re all getting used to dredging.

    Off Topic but encouraging…..here’s a headline that may provide a few smiles:

    NYC Comptroller John Liu: $432 Billion Pension Fund Coalition Demands Bank Directors IMMEDIATELY Examine Foreclosure Practices »

    “The banks’ boards cannot continue to pretend the foreclosure mess is the result of technical glitches and paperwork errors,” Comptroller Liu said. “There is a fundamental problem in their procedures that endangers not just homeowners, but shareholders, and local economies. Given the risks involved, only a swift and unbiased audit can reassure shareholders that the pension funds of 700,000 working and retired New Yorkers are in safe hands. The boards of directors have no time to waste.”

    The coalition represents more than $430 billion in pension fund investments, including $5.7 billion invested in the four banks.

    “We don’t know exactly what the banks were doing, and we don’t know if they did it right,” New York State Comptroller Thomas P. DiNapoli said. “Millions of families have lost their homes, and the investments of the million members of the Common Retirement System have been put at risk. As investors, we need to understand what happened. A full and open examination of the procedures used to foreclose on millions of families is the only way to make sure our investments are protected and no one is ever wrongfully evicted from their home.”

    The link:http://dailybail.com/home/nyc-comptroller-john-liu-432-billion-pension-fund-coalition.html

  17. I just wonder whoever followed the lawsuit between Bank of America and First American… Here is an interesting article of the title search practices by First American…


  18. I will let you read the following journals to decide what you think about this mega Title Insurance Industry….


    Here is another group that is critical of this former group…


  19. Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it?

    That’s $3,800 on a $100,000 home etc.
    When did this happen? It’s in the health care bill. Just thought you should know.
    SALES TAX TO GO INTO EFFECT 2013 (Part of HC Bill)
    So, this is “change you can believe in”?
    Under the new health care bill – did you know that all real estate transactions will be subject to a 3.8% Sales Tax? The bulk of these new taxes don’t kick in until 2013 if you sell your $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation who often downsize their homes. Does this stuff make your November and 2012 vote more important?
    Oh, you weren’t aware this was in the ObamaCare bill? Guess what, you aren’t alone. There are more than a few members of Congress that aren’t aware of it either.
    Why am I sending you this? The same reason I hope you forward this to every single person in your address book because you can make a difference.

  20. Okay. Now I’m gobsmacked. The Title/Settlement Co. for my loan was Lenders First Choice, Frisco, Texas. Apparently only one of many of their locations. They claimed bankruptcy under their corporate name. Found the info on a Notary website:

    United States Bankruptcy Court
    District of Colorado

    Mercury Company, Inc
    Case # 08-23125
    Tax ID 84-1008321

    Meeting of Creditors on 10/10/2008.

    * COMPLETE A PROOF OF CLAIM (can get from the website)

    * Attach copies of supporting documents such as invoices or closing confirmations. DO NOT SEND THE ORIGINALS.

    To receive a an acknowledgement of the filing of your claim please enclose a stamped , self-addressed envelope and copy of your proof of claim.

    I never received any docs related to Title Insurance. Also, never received the Cert. of Satisfaction when I re-fi’d. Found it, combined with a Lost Note Affadavit when I checked my recorded docs at the Clerk’s Office. The document clearly instructed the recorder to send the original Cert. of Satisfaction to me and provided my address. Not received.

    Notary site indicated that Lenders First Choice closed their doors on the same day they had closings scheduled. Massive number of notaries filing claims for unpaid services. Also found, on their forum, the info that all documents related to closings/settlements were transferred to a First American Title. I’ve not received any correspondence from any Title Insurance Company prior to the bankruptcy or subsequently.

    I noted that Sarbanes-Oxley mentions something regarding these files/docs and a violation regarding their security/transfer. Anyone have any suggestions?

  21. most title and escrow firms are just title insurance agents and are regulated by your stete bureaus of insurance.

    i have mentioned many times about the golden nuggets you find in these files and the files they actually send to the bankers, the faxes, email, checks, addresses, all the different people and companies that are involved.

    but the issue that Mr Garfield brings forth is so crucial to your claims. Would you have bought or refinanced if you knew that by doing that you would be getting a corrupted title?

    Most of these title companies never did the title search, or underwriting, they just consolidated de work of many other contractors, this was done to mitigate liability and costs.

    In Virginia, Maryland and DC you do not need to be a lawyer to do title work and title insurance.

    most practicioners were negligently ignorant of their full responsabilities, it was just a profit center, they worked for the 50%and in some cases the 150% mark up on their insurance fees.
    in some states the records were sent to the state regulator electronically via a software called TITLE EXPRESS.

  22. do not go to your corner title co. that closed their doors, the title insurance policy and all related underwriting paper work, records are also kept by the title insurers.

    you should have gotten a title insurance policy from Chicago Title, All American, American, Stewart Title, etc., these are some of the firms that engaged in title insurance.

    Most title and scrow

  23. More fraud and misbehavior. How this does not surprise me. When I closed on my house, the title company said the title was ok. When I tried to refinance, there were missing satisfactions of mortgage and could not refi. If you are suing anybody in this mess, make sure you include the title company. My crystal ball says there will be many more title companies going belly up. http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  24. The Special Warranty Deed , “aka” the Limited Warranty Deed seems to be the instrument that auction buyer’s can sell their newly aquirred property to the next sucker who wants Title Insurance.

    My foreclosed house was sold to an auction investor.
    These investors re-sold my house to a 3rd party and they got a Special / Limited Warranty from a Title Company . Apparentely this warranty only covers the time period between the auction sale and 3rd party sale.
    But the older clouds of Title , those before the auction sale are not fixed.or solved
    So does that mean that this 3rd party new owner .. is open, and unprotected from a civil suit , and or Quiet Title action by the previous home owner (me) ?

  25. Okay … so we agree to disagree.

    The new problem is … is that title companies are willing to settle for an indemnification letter from the bank to issue a policy to inure to the benefit of the lender. It does nothing for the homeowner.

    Before you go suing a title company, please be advised that the title policy that was issued covers everything prior to and up to the closing of the original loan or refinance. It does not cover future claims.

    My take on Ibanez and LaRace is turning out to be more than just a chain of title issue. If the bank is acting as a trustee, it too must have E&O coverage.
    True, the insurance companies have reason to worry … but the title companies (here’s where I agree to disagree) do not bear the same liability in many instances and you are wasting your time suing them.

    I am actually working with attorneys, developing pleadings and declination letters based on chain of title assessments. If you think you can file a quiet title action without additional causes of action and legal tactics, you are sadly mistaken. You are not going to get away with filing these pro se either. The chances of a win for you are slim if you don’t have a bar number. Remember, QT’s are a specific jurisdictional issue. ***hint hint***


    In the next couple of days, I will be posting a commentary about this mess on http://www.cloudedtitles.com … if you do not yet have the book, you can order it in eBook form online.

    The title company, as you will read in Section 12 of the eBook, can actually HELP you establish prima facie evidence of chain of title gaps. This has already happened in the Missouri case and has caused it to be set for trial and discovery has already been ordered. This should tell you something in the way these cases need to be prepared. If you aren’t a litigator, you have no business doing this!

    Regarding the title company, you cannot just call them up and expect to talk to someone over the phone and get these results.

    If the title company that is on your mortgage or deed of trust is out of business, then you need to see who has the current files due to merger potential. Title companies have E&O coverage. As an original trustee, they have to.

    Chain of title assessments will be necessary to demonstrate to a potential title company the particulars of your claim. You need to meet with them in person. Filing a suit to quiet title is a state claim. It involves securitization as a matter of agency only. Everything flows from the chain of title and agency, NOT WALL STREET. If you attempt to bring these issues into the mix, your case will get tossed.

    Again, for more info, get the book and bookmark http://www.cloudedtitles.com … there is new case law on this getting ready to be set within the next 60-90 days. You will soon find out from our insider reports as to who has the E&O money and why they want to keep the trustees OUT OF THE MIX!

    Yes, the trustee is a party to your Deed of Trust, thus most attorneys I know NAME THEM as a Defendant for good reason. The securitization arguments are useless in 99% of the cases because agency has not been proven. This was clearly demonstrated in Ibanez.

    I am now compiling material for a follow-up book.

    I am slated to be on THE POWER HOUR again, on January 24th at 8:00 a.m. CST. They have hard copies at The Power Mall if you wish to purchase it in paperback. The book is selling so well they’ve ordered more copies.

    Please keep in mind that you need an attorney that “gets it” and is willing to pursue bills of quia timet as the mainstay on an attack on title. It’s Ibanez in reverse according to my research.


  26. The main partner at one of the biggest “mills” in our state is a licenses title insurance attorney and agent. He owns 3 abstract and title companies. One being nearly attached to the foreclosure mill. This is only naming a few of the “services” he offers. How happy should one be to think if any fraudulent activity can be done, it’s this foreclosure mill. I’m confident they can manipulate anything possible. In fact, they are not only working for the servicer, but protecting all the revenues of income and keeping it hush hush so the local media doesn’t get involved. It’s not just about the 900.00 bucks they collect from filing the foreclosure.

  27. Steve,

    Most likely you are referring to an “agent” for larger title company. You have to have current mortgage title insurer — they cannot just close doors. DOJ should know this.

  28. That’s got me puzzled. My title company closed its doors. I could not get any request docs. even before foreclosure. My District Attorney for over a year now says she can’t get them to respond and her office can’t afford a search warrant but says she’ll keep trying. I’ve been wondering why certain Title companies closed their doors when the crisis hit.

  29. Yep, yep and yep.

    Let them squirm trying to get out from under these incoming trains. I hope they get flattened.

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