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Foreclosures in Ohio After Schwartzwald
by Robert Franco | 2012/12/31
On October 31, 2012, the Ohio Supreme Court decided Federal Home Loan Mortgage Corporation v. Schwartzwald, finally answering the question: Can the lack of standing or a real party in interest defect in a foreclosure be cured by the assignment of the mortgage prior to judgment? Until Schwartzwald, there was a split on this issue among the courts of appeal. According to the Ohio Supreme Court, "a lack of standing at the outset of litigation cannot be cured by receipt of an assignment of the claim or by substitution of the real party in interest." What does this mean for the many foreclosures that have not followed this rule of law and what do title examiners need to look for when reviewing foreclosures in the chain of title?
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Categories: Abstractors, Foreclosures, Title Industry, Title Problems
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Work From Home as a Title Abstractor!
by Robert Franco | 2012/06/12
I guess it really isn't anything new... with online records becoming so prevalent, many title abstractors have traded their traditionally casual attire for silk jammies. Though online access varies from county to county, I have always been of the impression that you really can't do a thorough search from the comforts of your living room. First, it is rare that all of the records you need are available online. And, second, the "official records" are usually on found in the county courthouses. Nonetheless, ads are popping up offering "work from home" positions for title abstractors.
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Categories: Abstractors
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Can A Trust Hold Title In Ohio?
by Robert Franco | 2012/02/23
Generally speaking, a trust is not a legal entity and it may not hold title to real property, with a couple of exceptions for specific types of trusts. Rather, it is the trustee who holds title for the benefit of the beneficiaries of the trust. For example, the proper grantee on a deed funding a trust with real property is "Jon Smith, Trustee of The Jon Smith Trust." A deed to "The Jon Smith Trust" is a void ab initio because the trust is a non-entity. Unfortunately, there are many deeds of record purporting to convey the property to the trust, with no mention of the trustee. Ohio has recently passed a bill that will allow for such defects to be cured.
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Categories: Abstractors, Ohio Legislation, Title Problems
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Is That Mortgage Open-Ended?
by Robert Franco | 2011/12/27
I got a call from a client this morning asking if a mortgage we showed on a title search was open-ended. It is an important question. When we do a search, we report what we find. If the mortgage is open-ended we write "Open-Ended Mortgage." If it is not, we simply write "Mortgage." But, this reminded me of an email I received a few months ago. It seems that an abstractor did not indicate whether the mortgage was open-ended or not. As it turned out, it was open-ended and there was a claim on the title policy because of the discrepancy. The question in the email I received was simply "who is responsible for the claim?"
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Categories: Abstractors, E&O Insurance, Risk, Liability and Claims
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Last Week I Wrote-off Approximately $7,000 In Bad Debt.
by Robert Franco | 2011/12/21
I have always resisted writing-off bad debt. I know that we have been carrying balances on customer accounts that is uncollectable. But my theory was that if those customers ever called to ask us to do their work again, I wanted to be able to tell them to pay their balance first. So, I just kept it on the books as a reminder. Finally, though, to get a fresh start in 2012, I decided to clean up all of those accounts... some dating back to 2004. I learned a few things, or at least confirmed what I already knew, that I thought would be worth sharing.
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Categories: Abstractors
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Acknowledgments in Ohio
by Robert Franco | 2011/10/14
In late 2001 the Ohio legislature passed a bill which included statutory forms of conveyance that contained a new acknowledgment clause. Within a few months, prior to the effective date of the former bill, it introduced and passed a new bill making further changes. There was some language related to the acknowledgments that was proposed, but never passed, that made its way in to subsequently recorded deeds. Some seem to question the validity of these acknowledgments. Whether they are valid or not depends on the precise language used, but they may be perfectly fine.
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Categories: Abstractors, Attorneys, Notaries Public, Ohio Legislation, Title Problems
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