Blog Talk Radio Show Summary October 4, 2010: ALTA Views on Foreclosure Issues

2017-12-20T17:34:15+00:00 October 12th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , |

Kurt Pfotenhauer, CEO of the American Land Title Association (ALTA), was the special guest today and his appearance could not have been more timely.  Just last week news of process issues in the foreclosure departments of several of the very largest servicers was brought to light.  Foreclosures in twenty three states have been put on hold by these servicers because the employees processing the foreclosure paperwork and legal documents were not doing so in accordance with required diligence.  This brought up several issues for ALTA members, like can they issue title insurance on foreclosed homes being sold by the foreclosing entity.  Old Republic has already said they will not write title insurance on such purchases until the foreclosure documents on these properties are corrected.  Kurt affirmed the difficulty of writing insurance on these transactions.  He expects much litigation will commence on prior sales of foreclosed homes, but that in the end the procedural issues discussed above will be overcome. Even more timely than the foreclosure issue was that Kurt was able to report that on October 1st a major class action lawsuit against MERS (Mortgage Electronics Registration Systems) was resolved.  The lawsuit alleged that MERS was not a legitimate holder [...]