I have read many posts in which it was suggested to contact a local title company for leads on preforeclosures and distressed property owners. Can someone help me to understand this. I thought title companies performed closings for buyers and sellers. How can they help me with leads?
Thank you for sharing your insights!!
In the old days… About 6 months ago … Your title rep would give you access to foreclosure data that the title companies generate… However due to data providers complaining to RESPA they are no longer allowed to…
The issue is that the title companies were charging companies like foreclosures dot com 400,000 a year for the same data they were giving to agents and investors as an enticement to do business with them.
The problem with that enticement is that it is the buyer and seller pay the costs within a real estate transaction and RESPA believe that the cost of the “FREE” lists actually increases the cost to the seller and buyer to no fault or without disclosure.
With that said they can still and do still provide data generated by “Metro Scan”. That data is public record data therefor free. If you need list data IE. 30-60 day lates or types of loan info then you will have to pay for that data…
BTW… The major list providers IE first American title and fidelity national title I believe welcomed the “Cant give it away” anymore.
Last year or so First American title data company was purchased by a company called corelogics… Imagine how much business increased now that they cant give data away…
Michael can you explain how it increased the cost. It’s supposed to reduce cost at least for sellers. Don’t get it, don’t get. Thanks in advance.
Nick way back… Title companies were famous for vacations, some offered cars, loans etc… RESPA believes that those enticements increased the cost of doing business for the title company which the buyer and seller ultimately paid through an increased fee schedules… Without direct benefit…