Update November 26th: The Wall Street Journal is reporting this morning that Fidelity will buy Lawyers Title and Commonwealth Title. Also, LandAmerica and its 1031 Exchange Company filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. (thanks to Dave Wirshing)
In the short term, this is a good thing. Yesterday when national lenders reportedly stopped accepting LandAmerica policies, they were essentially dead in the water. Financial stability should no longer be a concern. Although there appeared little chance that LandAmerica's title underwriters would end up in regulatory reorganization, removing the specter of doubt about their financial condition benefits the entire title industry.
Long term, there are many uncertainties for title agents and their customers. I raised some of those questions in an earlier post which you can read here.
very interesting post . This crisis rumbles through out our land and I am afraid it is not done yet
Interesting information. I had not thought of the crisis affecting title companies.
Where will it all end? It's disheartening watching the dominoes just keep toppling over. Hang in there and keep us updated as things develop...
Charlie: I hope your wrong and it is mostly over with.
Gita: Title companies live and die with interest rates and mortgage activity. This crisis however seems to have been caused by not treating other peoples money (the 1031 funds) with proper care.
Janna: There will be more dominos, I'm sure. A lot of what's wrong with the title business (affiliated business, reinsurance scams and title insurance lite) the last few years can be traced backed to LandAmerica, so I don't feel overly sorry for their senior management, just the rank and file employees.