A noteworthy legal precedent about title insurer liability has emerged in a complex four-way suit between three real estate developers and one’s title insurance company.

Chief U.S. District Judge Frank D. Whitney granted a summary judgment motion in favor of Old Republic National Title Insurance Company, affirming that they were not liable for paying damages incurred by client LJW LLC as part of a fraud case.

Case Backstory

The 28-acre development was started in 2007 by Ardley Land LLC, which sold it to Waters, Sr. and LJW in 2012. LJW and its owner Bill Waters were accused of conspiring with Waters’ son and his own company, Reverdy LLC, to cut the disputed property’s original owner out of valuable sales rights. Reverdy (and its owner Waters, Jr.) came to hold the property’s title through a complex series of document exchanges financed by a $1.2m loan from LJW. In exchange, the father-son team allowed Ardley to retain sales rights on several lots in the property and promised that the development would be done by February 2013 to take advantage of the yearly sales-boosting “Homearama” event.

Suit and Damages

Reverdy failed to hit its development deadline, and in January 2013, LJW began the foreclosure process on the entire property. Ardley then filed suit against both Waters under the claim that they had conspired to strip Ardley of rightfully owned assets through inaction. The suit also included a “quiet title” provision that sought to reclaim first lien rights for Ardley, given that the Waters had been working together as essentially one unit.

Ardley came out triumphant, and both LJW and Reverdy were ordered to remediate the damages caused by their fraud. Waters, Sr. then attempted to file restitution with the project’s title insurer Old Republic — but was rapidly shut down.

Quiet Title

Whitney’s ruling rested on the fact that the property’s deed of trust extinguishment was the product of active deception. He also specifically stipulated that even though LJW had asked for the quiet title complaint to be considered separately from suit damages, conspiracy allegations tainted the entire claim.

The legal reasoning is clear: for an insurance system to work for all involved, the beneficiary cannot have an interest in actively causing the circumstances of a claim. In other words, an insurer cannot assume liability for bad behavior on their client.

Fraud Red Flags and other Scams

The employees at BNN services are educated in the latest real estate schemes to protect you, our clients, from fraudulent conduct. With the burgeoning fraudster industry ascending in recent years, we train our specialists in all types of schemes so that we can recognize them before the damage is done.

For a stress-free closing experience, rest easy with BNN Services, on time every time for you!

Question: “I’m getting ready to close on my new home, but there’s a settlement fee for the lender’s title insurance and also a similar one for the owner’s title insurance. Is it essential that I pay both?”

Answer: This question has been around for a long time, and many homeowners get very frustrated when dealing with it. It may seem silly to purchase owner’s title insurance, particularly when they are positive that the person who lived in it previously has been there for a very long time and is an otherwise trustworthy individual.

The first thing that’s important to understand is that obtaining lender’s title insurance is a must if you’re looking to get a mortgage from a commercial lender. Luckily, many states often make it mandatory for the seller themself to cover this cost on their own. In addition to that, many builders will agree to cover this cost for you if you agree to use their preferred lender and escrow organization.

Owner’s insurance, on the other hand, is completely optional. Basically, what title insurance does is cover the buyer and lender both against a loss that can result from a title defect, regardless of whether these are known or completely unknown at the time of the sale.

The above situation could arise in examples where someone who’s in bankruptcy and has no authority to sign a deed conveys it to another party or if, for example, a “buyer” forges a “seller’s” name to transfer the property to his or herself.

There are numerous instances where title issues can arise, and it’s important to realize that title insurance is different from homeowners’ or automobile insurance. Rather than covering a future mishap, it’s covering an existing but possibly unknown issue already in effect. When the seller of the property you’re looking into purchased the property in the past, the insurance policy covered any risks in place when they took the title, but nothing that would have arisen later on.

These situations occur rather frequently, as there may be a mechanic’s lien against the property, the home may have been sold at a tax sale, or the document may have been forged, but there are many other reasons.

It’s a fairly complex issue, but in the end, the decision to get an owner’s title insurance policy is completely up to you, although there are some significant risks if you decide to go without it. Because of that, it’s important to go over the sale with an attorney before actually closing.

A Better Way to Close with BNN Services

Since 2008, BNN Services has been trusted by title agencies, mortgage lenders, servicers, and consumers to perform loan and document signings in multiple languages across the country.

Unlike other signing services, BNN Services “touches” every file 8 or 9 times to ensure the process moves forward free of delays. That’s why we’ve completed over 250,000 signings in all 51 jurisdictions and maintained a closing ratio of 96 percent.

Ready to experience the BNN Services difference? Get started today!

Most real estate transactions use various property deeds to transfer title from the grantor (the previous owner) to the grantee (the new owner). The type of deed used will depend on the type of title warranties and covenants that the grantor provides. Here are a few of the most common forms of property deeds to give you a better idea of what to expect in a real estate transaction:

General Warranty Deed

This type of deed gives the buyer the highest amount of protection. It certifies that the property’s title is clear and the grantor is the true and rightful owner of the property. Essentially, the grantor reassures the grantee with a promise to protect them from any entities that have a lien or claim on the property. A general warranty deed is granted after one’s title insurance company does a title search. After that, the title insurance agency will allow the grantee to buy an insurance policy for further protection from any issues with the title.

Special Warranty Deed

The special warranty deed doesn’t offer the grantee as great protection as a general warranty deed does. This form of property deed will only address any issues with the title that were uncovered during the grantor’s ownership of the home. Basically, the grantor warrants that they have not done anything while holding title to the property that would cause issues. It does not provide a warranty against any problems that existed before the grantor’s ownership of the home.

Quitclaim Deed

A quitclaim deed, or a non-warranty deed, is a form of property deed offering the least amount of protection. The grantor doesn’t make any promises regarding the transfer of clear and free title. So, if there are issues with the title, the grantee will not have any legal recourse against the grantor. Under what circumstances would this deed ever be used, you ask? It is most commonly used when the grantor is unsure of the quality of the title or if they wish not to have any liability. This can also be used when a grantor wants to add someone close to them (i.e., a family member or friend) to the property title or remove them from the title.

Bargain and Sale Deed

Finally, the bargain and sale deed is very similar to a quitclaim deed; however, it offers the grantee reassurance that the grantor is the rightful owner of the property and is at liberty to sell it. This form of deed is often used during foreclosures or court seizures. The grantor will not always be protected by title insurance for this form of a deed, which could put them at risk for a claim or lien on the property.

 A Better Way to Close with BNN Services

Since 2008, BNN Services has been trusted by title agencies, mortgage lenders, servicers, and consumers to perform loan and document signings in multiple languages across the country.

Unlike other signing services, BNN Services “touches” every file 8 or 9 times to ensure the process moves forward free of delays. That’s why we’ve completed over 250,000 signings in all 51 jurisdictions and maintained a closing ratio of 96 percent.

Ready to experience the BNN Services difference? Get started today!

Everything You Need to Know About REO

Investing in commercial real estate has been one of the most dependable paths to financial independence in the United States for centuries. Unfortunately, finding the right commercial property to buy is easier said than done.

What Is Real Estate Owned Property?

An REO or real estate-owned property is a property that a lending institution owns. Banks become commercial real estate owners when borrowers cannot make their payments and fail to find new buyers via short sales or auctions. Commercial REOs can be particularly difficult for small-time investors to secure.

The Benefits of Investing in Commercial REOs

The most significant advantage of buying commercial real estate-owned property is the potential for superior returns on investment. Many commercial REOs sell for far less than their market value due to a variety of factors. If a property simply needs a minor cosmetic facelift, a buyer can reap a substantial windfall.

Another great benefit of commercial REOs is the quick turnaround times that often accompany their sales. To put it in simple terms, banks are “motivated sellers” since they do not want non-performing assets on their balance sheets. Banks earn their profits by lending money, not by acting as commercial property managers.

Lastly, commercial REOs allow entry-level investors to get into the commercial real estate game without much capital. If you do a little homework and find a diamond in the rough by scouring commercial REO listings, you can quickly obtain a great property at a fraction of its value.

A Few Notable Commercial REO Downsides to Consider

The most significant risk that commercial REO buyers assume is the possibility of unexpected repair and renovation costs. Most commercial REO properties are sold “as is” and come with no guarantees that they will be viable investments. What’s more, buyers typically do not have much time to assess property beforehand.

Another major wrinkle to ponder is the financing arrangements needed to pull off commercial REO investment. If using a bridge loan to buy a commercial REO, getting the property up to snuff ASAP is critical. Finding a long-term lender to finance your play can be difficult even after the property is renovated.

How to Find Commercial REOs Worth Buying

For the most part, sites like Zillow, Trulia, and Redfin are not the best places to find commercial REOs. The good news is that the USDA, HUD, Fannie Mae, Freddie Mac, Wells Fargo, Bank of America, and many other lenders maintain their own commercial REO real estate online listings worth perusing.

Most banks that own REOs use realtors to offload the unwanted property. Becoming good friends with local realtors specializing in foreclosure deals is a wise move if you are on the prowl for viable commercial real estate. Top realtors will pay for themselves and then some by directing you to great REOs before they hit the market.

Not every commercial REO worth looking at is owned by a nationwide lender. Many local credit unions have foreclosures on their books that they would like to sell in a hurry. Contact regional banks nearby and ask to speak with their REO specialists to get a better read on your options.

Get Started With REO Properties the Right Way

Commercial REO investment opportunities are everywhere if one knows where to look. Perform extensive due diligence and “kick the tires” on any deal before you make a firm commitment. As long as you understand the potential pitfalls of REO speculation, there is plenty of gold in that market, no matter what the overall economic situation may be.

A Better Way to Close with BNN Services

Since 2008, BNN Services has been trusted by title agencies, mortgage lenders, servicers, and consumers to perform loan and document signings in multiple languages across the country. Unlike other signing services, BNN Services “touches” each and every file 8 or 9 times to ensure the process moves forward free of delays. That’s why we’ve completed over 250,000 signings in all 51 jurisdictions and maintained a closing ratio of 96 percent.

It’s 2021, and mortgage lenders need to start publishing to get their names out there. With the advent of the internet, it has become second nature to seek information before deciding whether to find a dinner recipe, start a project, or purchase a home. It’s also become more accessible than ever to find that information.

This ongoing search for information offers an opportunity for companies to create published work that will significantly impact the way consumers find them and the way they are regarded in their industry.

Here are nine reasons mortgage lenders should start publishing.

Become Influential

People of influence are discovered through published work. As a person of power, you can take the driver’s seat and help make changes that suit the needs of your business. Getting published allows you to influence people seeking mortgage information.

Lead Generation

Being published allows you to show current clients that they should depend on you for anything related to mortgages while showing new prospects why they should choose your business. It provides a forum to build relationships while creating sales pieces to share in your promotional packages, social media, website, and blog.

Search Engine Optimization (SEO)

The more you are published online, the more you build your online presence. Becoming a person of influence encourages others to link to your information, improve your SEO efforts, and raise your profile as you become more visible.

Build Trust

As your SEO ranking improves, you will become a more trusted online resource. You will be seen by more people searching for mortgage information who will learn more about your company and your expertise. You will be viewed as an expert in the mortgage lending industry.

Gain Respect from Peers

The trust you gain will also influence others in your industry. Your published articles, especially those in influential forums, will garner respect from your peers. The more you are issued and the more influential the mediums you appear, the faster you will become recognized as an industry thought leader.

Industry Leadership

As you gain authority in your industry, you will also find yourself becoming a prized commodity in the conference circuit. Finding speakers for conferences is often dependent on who is being read and heard through published work. This can lead to interest from conference producers in need of new voices to help them gain traction for their event. Conferences are yet another way you will gain exposure for your company.

Consistent Branding

When you publish your work, you have control over how your company is viewed. You can build your brand personality with a consistent message that reflects your business in a positive light. The focus will be what you offer, building equity and recognition for your brand.

Free Publicity

Once your work is published, it will be accessible for editors, reporters, and bloggers during their research. You can become a source for quotes and input for other online sources, which provides free publicity, the best of organic marketing.

Awards

Published work helps raise your business profile to generate industry recognition and possibly even nominations for awards. 

You don’t have to be Ernest Hemingway to get published. You need to share your mortgage knowledge via engaging, educational information that prospects can understand and peers will respect.

A Better Way to Close with BNNServices

Since 2008, BNNServices has been trusted by title agencies, mortgage lenders, servicers, and consumers to perform loan and document signings in multiple languages across the country.

Unlike other signing services, BNNServices “touches” each and every file 8 or 9 times to ensure the process moves forward free of delays. That’s why we’ve completed over 250,000 signings in all 51 jurisdictions and maintained a closing ratio of 96 percent.

Ready to experience the BNNServices difference? Get started today!

Significant life changes are often accompanied by stress, fear of the unknown, and uncertainty. This notion rings especially true for employees or others affected by the pandemic who are relocating. If you’ve recently accepted an exciting job offer in a new place, getting your ducks in a row can prove challenging. Finding a place to live likely ranks highest on your list of priorities. However, since you’re unfamiliar with the area, tackling this essential task is bound to overwhelm you. Fortunately, relocation companies exist to breathe simplicity and peace of mind into your upcoming move. 

From real estate experts to relocation specialists, these companies come equipped with all the necessary intellectual capital to make this transition a breeze. The secret to their success is placing your wants and needs first, resulting in a harmonious outcome and effective collaboration. Perhaps you want to get acclimated to your new city before settling down. Maybe you’re more interested in putting down your roots immediately. No matter your preference, relocation companies have all the real estate knowledge you will need. 

End-to-end relocation services rely heavily on the knowledge, expertise, and experience that real estate service professionals bring to the table, which is why you should vet every firm before making a decision. These real estate professionals should be versed in specific communities, neighborhoods, and areas, allowing you to be as selective as you’d like while searching for a new home. Part of their team should be a transactional specialist versed in real estate transaction customs in your new locale. 

In addition to understanding your expectations, real estate specialists also educate you on title insurance, notaries, attorneys, inspections, property taxes, and homestead exemptions, among other real estate matters. With their extensive know-how at your disposal, you’ll discover how simple it is to make a savvy final decision. 

 Before affairs unfold, you and your agent will discuss what you want your living situation to look like. Some factors to consider include price, area amenities, walkability, type of housing, and lifestyle preferences. Using this information, your real estate specialist will whittle down the many options on the market so that you can find the home of your dreams. With a dedicated relocation specialist by your side, you’ll feel confident in the community and house that you choose. 

To promote a streamlined process, relocation companies should offer mortgage services and allow their employees to secure viable mortgage options. Meanwhile, their school search tools enable clients to find excellent educational opportunities in the area. If not for our cost of living calculator, many prospective homeowners would find themselves in a money pit. They also have temporary housing, community information, and other benefits available. 

 If you’re looking to take the hassle out of employee relocation, an end-to-end relocation company will work closely to develop sound approaches that rid you and your family of unnecessary anxiety and worry. Settling into your new life doesn’t have to be worrisome. Best of all, they are prepared to address any questions, comments, or concerns that you may have along the way. Don’t brave this new endeavor alone. Instead, make this forthcoming change with ease when you employ relocation services.

A Better Way to Close with BNNServices

Since 2008, BNNServices has been trusted by title agencies, mortgage lenders, servicers, and consumers to perform loan and document signings in multiple languages across the country.

Unlike other signing services, BNNServices “touches” each and every file 8 or 9 times to ensure the process moves forward free of delays. That’s why we’ve completed over 250,000 signings in all 51 jurisdictions and maintained a closing ratio of 96 percent.

Ready to experience the BNNServices difference? Get started today!