Assembly Bill 957 – Is it going to help with the Foreclosure Buying Process???

We work with a few Main Line Banks in the sales of their Foreclosure Assets.  The learning curve was quite substantial with regard to the way that they wanted us to handle their assets.  But caught on we did.  It did not take long before we adjusted to their working practices and obtained their approval to continue to manage, list and Sell their Foreclosures.

With all of the agents in the world, it was a true blessing to have the Asset Managers and Banks choose the Paris911 Team at REMAX of Santa Clarita to sell their Bank Owned Foreclosures.  We have even picked up assets in San Jose – Which definitely shows no Geographical dependency on our end.  If it is a Home, Condo or Town home – we can manage, list and sell it for your Bank or Financial Institution.

This discussion brings me to a new Assembly bill that will be brought to a Vote This Monday, April 20, I posted this on our REOEngine Foreclosure site because it will impact the banks that are selling their Foreclosure Properties.

Currently, the banks pick their own Title and Escrow Companies.  Just like the old saying goes, “Seller Selects Services”.  Which was very typical in the past real estate markets.  But now, with this bill, with relation to Bank Owned Properties, it would put the power of choosing Title and Escrow in the hands of the Buyer.

Interesting concept, but is it really in the best interest of the mechanism within Foreclosure Real Estate?  Is there an, “appearance of evil”, portrayed by the bank off-loading their Foreclosure properties and choosing the services of Title and Escrow? 

Here is our experience, I have not seen any fraud or misrepresentation with the Title and Escrow companies that our banks have utilized in the process of selling their foreclosures.  Could it happen?  I suppose, maybe in the cases of some of the smaller financial institutions or LLC’s.  It has been my experience that the bigger the bank, the less likely this occurs.  But now they want to place the Choosing of Title and Escrow in the hands of the Buyers. 

The way it has been working with the Foreclosure properties that we have been placing onto the market, when the banks we work with choose Title and Escrow, it has not been a good experience.  It has nothing to do with cheating, or bending the rules when it comes to selling their assets.  It also has nothing to do with any “misrepresentation” concerning the buyers interests.  It has everything to do with customer service.  From the opening to closing takes great patience and a huge amount of phone calls.  Unnecessary phone calls from our staff to Escrow and Title to make sure everything is on time and target.

It seems that they have given so much business to the Title and Escrow companies that they chose and that the escrow and title companies did not increase their staff – to a point of being so overwhelmed, that extensions are requested on every single file. 

Not extensions because of the Lender issues – but extensions because Escrow and Title dropped the ball in getting things done in a timely manner.

It will be interesting to see how this plays out in the long run.  Will the Buyers of the world utilize this to their best interest.  Will they realize what a Strong position this places them within?  Will this create different modes of advertising from the Escrow and Title Company Perspective within the ranks of the Buyer world?  Will there be advertisements to the Buyer communities about discounts, kick backs, and gifts given to utilize a certain title and escrow company in their bank owned purchase?  All interesting questions and we will have to watch this unfold Tomorrow!!!