The Washington Post Puts A Face On The Housing Slump

The Washington Post did a nice job of personalizing the housing slump in Housing Rut Derails Host of Dependents: Providers of Niche Services Face Their Own Struggles in Market Slump. The article quite nicely focuses on the secondary affects of the housing bust, but really goes in to some detail about abstractors, and one in particular - Terry Croson.

As it soared, the region's housing market lifted the fortunes not just of home builders and real estate agents but also of those in less-obvious niches: termite inspectors, land surveyors and septic tank repairmen among them. Life was good for Terry Croson, who as a title abstractor scours courthouses for detailed land records that are needed to close a sale.

But Croson, who is single and raising her 6-year-old nephew, now finds herself living paycheck to paycheck, struggling to hold onto her home in Charles County. She said she made $30,000 abstracting last year, down from $47,000 in 2005.

"I've never seen it this bad," said Croson, 47, who has been in the business for 30 years.

The article mentions that at least 10 percent of the economic activity in the D.C. area is linked to residential real estate. According to Realtor groups, housing sales were down, compared to January of last year, 47 percent in Northern Virginia, 41 percent in Maryland, and 38 percent in D.C.

While many are feeling the pains of the current housing crisis, some are doing rather well. Auctioneers, bankruptcy lawyers, and foreclosure specialist are all prospering.

There really isn't much I can add to the Washington Post article. But, I wanted to point it out because I am glad to see that people realize that there is more to the economic impact of the housing market than those who are loosing their homes. There are a lot of people out there that depend on the housing market to earn a living. Any plan Congress may have to lessen the burden on struggling homeowners caught in subprime mortgages won't do anything for the many hardworking people who will suffer from the loss of income.

The Washington Post did a fantastic job of putting a face on the housing slump, and it is one of our own... an abstractor. Though this article is about Terry Croson, it could just as easily be about any one of us. I encourage you to read it.

Robert A. Franco
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rfranco@sourceoftitle.com

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	After 30 years in this business has...
	After 30 years in this business hasn't she ever experienced an "industry slowdown"? Remember interest rates in the late 70's, savings and loan meltdown in 1986 and the last recession in the early 90's? She should be ready to retire instead she borrowed against her equity(retirement) and now she can't pay it back. She is not a victim.
	by Ricardo \| 2008/02/26 \| log in or register to post a reply

	Wow... that is a serious lack of co...
	Wow... that is a serious lack of compassion. I wasn't in the title business in the 70's - I was still learning to walk and talk. I vaguely remember the S&L meltdown, but I was in high school at the time. However, things are different this time around. In addition to an "industry slowdown" we have a lot more abstractors driving down prices and much of the work that is still available is done online, overseas, or by computers. The effects of this "market correction" are not likely to as easy to recover from. In any regard - I can sympathize with someone, who has worked hard to make a decent living as an abstractor, who is struggling right now. Things are getting tough and bound to get worse before they get better. And, it's not just abstractors - there are a lot of niche industries that serve the housing sector of the economy. It is good to see that they haven't been completely forgotten. Much of the media attention has understandably been on helping the homeowners. It is easy to overlook the others who are having a rough time coping with the aftermath of the subprime crisis.
	by Robert Franco \| 2008/02/26 \| log in or register to post a reply

	I have an important assignment. I a...
	I have an important assignment. I am on a mission to try and connect Star settlement to mezzo settlement. Can anyone tell me where to find articles of merger or any legal filing that the two are connected. I found out that 2 men claiming to be the owners of star are not assuming any responsibility of mezzo. However they did admit that mezzo would soon be filing bankruptcy-How would they have such information (?). I only have a short time to provide the courts with the evidence connecting the two so I'm reaching out for everyones help!!!!!!
	by cynthia hoffman \| 2008/02/27 \| log in or register to post a reply

	I have been in the business 38 year...
	I have been in the business 38 years. My experience has been varied. I worked for small & large Title companies, I worked for large Vendor Management companies, I have worked as an independent abstractor & I now own an abstracting company. I can say without question that I have never seen things this bad. I don't know where you were in the 70's Ricardo, but where I was things were booming. In the 80's when interest rates for 2nd mortgages were between 20-25 percent the 2nd mortgage industry was making millionaires out of people like Bob Murphy (Lenders Service) & Bruce Felder (Record Data). There was a slow down in the 90's but people were still doing well in this business. So well in fact that title companies & independent abstractors were springing up all over. People thought what an easy way to make a lot of money. Greed on all sides took over. People selling the loans, people making the loans, people buying the loans & yes people receiving the loans. Where is the logic in the amount on a loan being more than the equity in the home? We were just asking for trouble. My question is, why are people acting so surprised & running around wondering what we can do to fix it? The article that Robert mentions in my view is an excellent article. It is the first major article that gives the perspective of the abstractors. There are many abstractors out there that have made good money for a sometime and hopefully they have put money away. But there are many more that have just been out there making a living, taking care of their families & paying their bills. With not much left over to put anything away. Lets face it, some areas are always going to do better then others. So lets not paint everyone with the same brush.
	by Wanda Steudel \| 2008/02/27 \| log in or register to post a reply

	Ricardo, Hopefully you never lose y...
	Ricardo, Hopefully you never lose your job or get sick. I don't think Robert is asking anyone to feel bad for Terry. The point is, Terry's story is all too common these days. She helps to give a face to the millions of Americans whose incomes and lives have been affected by this slow down.
	by Shane Kane - TitleSuccess.com \| 2008/02/27 \| log in or register to post a reply

	One thing to add...In Michigan 90% ...
	One thing to add...In Michigan 90% of foreclosures are done through one law firm. They already have their own title company. Now they just started an abstracting company that advertises on SOT. So... they no longer need to farm out work to us independents. Great for them. Bad for the rest of us. Thanks for sharing the article Robert.
	by Jodi Earls \| 2008/02/29 \| log in or register to post a reply

Source of Title Blog

Robert A. Franco The focus of this blog will be on sharing my thoughts and concerns related to the small title agents and abstractors. The industry has changed dramatically over the past ten years and I believe that we are just seeing the beginning. As the evolution continues, what will become of the many small independent title professionals who have long been the cornerstone of the industry?

Robert A. Franco
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