Untitled Document

Absolute Title Services

Not a whole bunch of new information on this front, but let me tell you what we know. As of this writing, the vendor for the management of the database has been selected. A company called Veritec Solutions has gotten the contract and are in the process of implementing the plan. They are still some time out from testing, so it looks like it is still going to be at least 90-120 days before the database will be ready.

There also does not appear to be any regulatory or Legislative assistance forthcoming, at least in the near future. Both IAMB and ILTA are working the halls of Springfield for an acceptable resolution for all parties concerned. Now is the time to let your Legislators know what you think of this situation. Call, write, e-mail and fax them to let your voice be heard! It is too late to get the law blocked, but we have to try to get it more palatable for all parties involved. If you don't know who your Legislator is, follow this link: Illinois Legislator Lookup

My Borrower is in Bankruptcy, what do I need to close? To understand what you need to close, you first need to understand what happens when a person files Bankruptcy. When a person (the Debtor) files Bankruptcy, all of the Debtors’ creditors are effectively “put on hold” by what is known as the Automatic Stay. The Stay also “puts on hold” all of the Debtor’s assets as well, including but not limited to bank accounts, Real Estate, etc.. The Bankruptcy Trustee and the Court have jurisdiction over all of these assets of the Debtor’s estate until the case is concluded. This is done for the protection of creditors so that the Debtor cannot claim he is bankrupt while at the same time selling off, or worse, just blatantly transferring or hiding assets to keep them out of the hands of Creditors. The Court is allowed to go back a period in time for to see if assets were disposed of improperly (or hidden) prior to the Bankruptcy filing. In order for the Debtor to either sell or refinance any property covered under the Automatic Stay, a motion must be filed with the Bankruptcy Court to ask the Court’s permission. When the Motion is heard, the Judge will most likely grant the order which will contain directions as to how to disburse any proceeds, and in the case of a Chapter 13 Bankruptcy, how much needs to go to the Plan. A copy of this Order must be brought to the closing. Speaking of Chapter 13, in addition to the Order, a payoff letter from the Chapter 13 Trustee must also be provided to the title company.

Closing Time - No, I am not talking about last call either! I am talking about that magical moment when Lender and Borrower come together at the Title Company to complete their transaction. Everyone is smiling and happy, birds are singing, the sun is shining, then, just when everyone is about to breakout in a rousing chorus of Kumbaya, WHAM! The happy life is gone! The Title Company closer has just asked for a payoff letter for the IRS Lien that appears on the Title Commitment. Everyone at the table is looking at the Closer like she is speaking ancient Mesopotamian and has three heads! “What lien is that??” asks the loan officer, “it didn’t show up on the Credit Report, so it must be a mistake!!”

Now I know that the above scene has never happened to any of your closings, but the point is, it never has to happen at all! How can that be you ask? Let me explain. Generally speaking, a few days after you place a title order, a very strange thing happens, you receive an actual Title Commitment! You or your processor will fax it to your investor and then it becomes mere filler in your customer’s file. Allow me to make a suggestion, READ IT! The Title Commitment is the roadmap to a happy closing. Address the issues that might appear on the Commitment before you get to the table and then the above scene would really never happen to you. Here at ATS we have people whose whole job responsibility is to know how to fix whatever issues you may have and will be more than happy to show you the way. **Title issues only please, personal issues you are on your own for.** Point is this, allow us to help you. But we can only do that if you let us know what help you need!

See us at Booth #228 the IAMB Spring Marketplace at the Stephens Convention Center in Rosemont on April 11th! Stop by and find out how ATS could work for you!

Absolute Title Services, Inc

This email was sent to mcollins@absolutetitle.com, by mcollins@absolutetitle.com

TitleFacts - Common questions, uncommon answers!

*My Borrower is in Bankruptcy, what do I need to close?* To understand what you need to close, you first need to understand what happens when a person files Bankruptcy. When a person (the Debtor) files Bankruptcy, all of the Debtors’ creditors are effectively “put on hold” by what is known as the Automatic Stay. The Stay also “puts on hold” all of the Debtor’s assets as well, including but not limited to bank accounts, Real Estate, etc.. The Bankruptcy Trustee and the Court have jurisdiction over all of these assets of the Debtor’s estate until the case is concluded. This is done for the protection of creditors so that the Debtor cannot claim he is bankrupt while at the same time selling off, or worse, just blatantly transferring or hiding assets to keep them out of the hands of Creditors. The Court is allowed to go back a period in time for to see if assets were disposed of improperly (or hidden) prior to the Bankruptcy filing. In order for the Debtor to either sell or refinance any property covered under the Automatic Stay, a motion must be filed with the Bankruptcy Court to ask the Court’s permission. When the Motion is heard, the Judge will most likely grant the order which will contain directions as to how to disburse any proceeds, and in the case of a Chapter 13 Bankruptcy, how much needs to go to the Plan. A copy of this Order must be brought to the closing. Speaking of Chapter 13, in addition to the Order, a payoff letter from the Chapter 13 Trustee must also be provided to the title company.

Our View......

Closing Time - No, I am not talking about last call either! I am talking about that magical moment when Lender and Borrower come together at the Title Company to complete their transaction. Everyone is smiling and happy, birds are singing, the sun is shining, then, just when everyone is about to breakout in a rousing chorus of Kumbaya, WHAM! The happy life is gone! The Title Company closer has just asked for a payoff letter for the IRS Lien that appears on the Title Commitment. Everyone at the table is looking at the Closer like she is speaking ancient Mesopotamian and has three heads! “What lien is that??” asks the loan officer, “it didn’t show up on the Credit Report, so it must be a mistake!!” Now I know that the above scene has never happened to any of your closings, but the point is, it never has to happen at all! How can that be you ask? Let me explain. Generally speaking, a few days after you place a title order, a very strange thing happens, you receive an actual Title Commitment! You or your processor will fax it to your investor and then it becomes mere filler in your customer’s file. Allow me to make a suggestion, READ IT! The Title Commitment is the roadmap to a happy closing. Address the issues that might appear on the Commitment before you get to the table and then the above scene would really never happen to you. Here at ATS we have people whose whole job responsibility is to know how to fix whatever issues you may have and will be more than happy to show you the way. Title issues only please, personal issues you are on your own for. Point is this, allow us to help you. But we can only do that if you let us know what help you need!

See us at The Marketplace!!!

See us at Booth #228 the IAMB Spring Marketplace at the Stephens Convention Center in Rosemont on April 11th! Stop by and find out how ATS could work for you!