Dec 10, 2008

Another Escrow Company Fails

Hello Neighbors,

Another sad sign of the times.

The LandAmerica Financial Group / Commonwealth Title Company (Escrow Company) is no longer with us. They’ve filed for bankruptcy protection.

From Kat Fiorentino, one of our Lender Partners:


Its official. Every lender has cut off LandAmerica and it affiliates from issuing title insurance. Most will not allow them to handle the escrow either. They are Bankrupt and therefore could not possibly insure any transactions chain of title.

LandAmerica Financial Group has recently filed for bankruptcy. Until a definitive arrangement regarding LandAmerica Title has been completed and First Cal can be assured that policies from LandAmerica Title are adequately capitalized, we require a new prelim and subsequent title policy from a title insurance company in good standing for any loan where documents have not be drawn.

Kat Fiorentino

This makes 3 that have gone out of business this year: Alliance, Financial, and now LandAmerica / Commonwealth.

….and guess what? We’ve had escrows in place with all 3 when they’ve failed! Yep. Unfortunately we can’t see these things coming, as most companies are private. But we are getting very good at managing the fallout from a failed title / escrow company.

You need help, give us a call!

- Jim

1 comment:

Brandy Jameson said...

Just to keep you all up on the scoop, LandAmerica's holding company went bankrupt. The title ins. underwriters Commonwealth and Lawyers Title were always in good standing. Fidelity has purchased them officially and it's business as usual. :)