From M. Stoppa Esq. http://www.stayinmyhome.com
With the recent news about GMAC and Chase, I’ve been telling everyone who will listen that it’s only a matter of time before title insurance companies start to change their business models (if they can keep writing policies at all). In fact, I blogged about this at length, below, just the other day.
This morning, word broke that Old Republic has stopped issuing title insurance policies on GMAC properties until further notice:
I fear this is just the tip of the iceberg and that more fallout is coming. The ramifications could not be more severe. Property values are already depressed. It’s only going to get worse if title insurance companies won’t issue title insurance on foreclosed properties. After all, who wants to buy a property without assurances that title is clear?
I sincerely hope that everyone, particularly the judiciary, realizes – before it’s too late – that continuing to push through foreclosure cases at the current pace is going to have far-reaching negative consequences for the entire economy.