Archive for December, 2010

Broken Priority – What is it and how can borrowers get into trouble?, by Inwest Title a Utah Title Company

Thursday, December 30th, 2010

A client owns a building lot and now wants to build their dream home, but needs a construction loan first. The loan officer is anxious to help them realize that dream. Unfortunately, the title company has inspected the lot only to find that brush has been cleared, top soil has been removed, and there’s a port-a-potty on the property. The title company will not issue a lender’s policy because of “broken priority.”

Why do those things matter?

The lender wants to be in first lien position when lending the money to build the borrower’s dream home. Unfortunately, title underwriters might not insure the lender to be in a first lien position if there’s a chance that a mechanic’s lien could be filed against the property. Is the title underwriter worried about mechanic’s liens from the port-a-potty provider, guy who removed the top soil, and/or company that cleared the brush? Not necessarily, as each could be contacted to ensure they have been paid and to obtain lien releases.

The real problem comes from liens filed in the future by those providing services, work, materials, etc., after the loan is in place. Once you have broken priority, future liens, even though they were recorded after the loan was recorded, are now superior and they can foreclose on the property and wipe out the lender’s security interest.

Think of broken priority as a pre-existing health condition when applying for life insurance; if it is serious enough, you may not get coverage, or coverage may be severely limited.

This presents a real dilemma for many who own land and have partially developed and/or constructed on that land. In some instances, due to broken priority, the property will be uninsurable and so the lender most likely will refuse to loan on the property. In other instances the title underwriter may issue a policy that only provides coverage if lien releases from all parties providing services, work, materials, etc. are obtained. This can be a daunting task and some lenders will still refuse to loan on the property if they have to abide by additional requirements like obtaining lien releases.

The best solution is to educate clients to do absolutely nothing to their land prior to obtaining their loan and title insurance policy.

Tips for setting goals that produce results, by Inwest Title a Utah Title Company

Thursday, December 23rd, 2010

As another year is quickly coming to a close, we wish to pass on a thought that one of our business partners recently shared with us.  Take a moment in-between all the family gatherings, food, fun, and of course football, to celebrate your successes of 2010.  Write down every success or positive thing that you have experienced in 2010- both big and small. Once you start jotting them down, it may surprise you how much you have to be grateful for and to celebrate.    As we set goals for the New Year, most individuals have a tendency to put too much focus and energy in what they haven’t achieved, and miss the opportunity to acknowledge their victories and successes, and lessons they have learned along the way.

Why is goal setting so important?

“In a Harvard University study, only 3 percent of Harvard students asked set and wrote goals on a regular basis.  The stunning revelation of this study is that 30 years later, 50 percent of the total net worth of the group was held by just 3 percent of the group.  You guessed it! They were the 3 percent that had a habit of setting and writing goals as students, and then continued to write goals and review them regularly.” Source: How to set and attain goals for success.

“If you don’t know where you are going, how can you expect to get there?”  -Basil S. Walth

“If you fail to plan, you plan to fail.”   -Carl W. Buechner

According to many surveys, only 8 percent of Americans successfully achieve their New Year’s resolutions. A whopping 45 percent fail by the end of January! Why can’t people keep to their resolve? Because they are missing the most important step.  A plan with clarity and commitment!

Here are 5 suggestions for effective goal setting that are sure to get you heading in the right direction as we start a New Year.

1.  Put your goals in writing.

Many people wander through life with some vague idea in their minds what they want to accomplish, but it’s more of a dream, than a goal.  Write it down!  When writing your goals you want to be crystal clear about your objective and document the steps and actions necessary to achieve that objective.   Remember -be specific!

2.  Your goals must be believable to be achievable.

If you don’t truly believe in the goals you set for yourself you will not be motivated to achieve them.  Be honest with yourself and recognize your own mental limits.  Set goals that stretch your limits gradually.  Start by setting smaller but yet inspiring goals, and build a track record of success that leads you to greater accomplishments.

3. Post your goals where they can be seen daily.

We have all heard the saying “out of sight, out of mind;” this is definitely true when it comes to setting and achieving goals.  Post them goals in places you regularly frequent as a constant reminder of what you want to achieve.

4. Get an accountability partner.

Anyone serious about achieving their goals should have an accountability partner.  Pick someone that has similar goals to yours, and set a schedule to check in and track one another’s progress.  The key is finding someone who will truly hold you accountable for you action, or lack thereof.

5. Track and measure your progress.

“You can’t improve what you don’t measure.”   It doesn’t matter what system you use for tracking your progress.  The important thing is, that it works for you, and you are doing it.  Tracking will allow you to make any changes needed along the way to keep you on course to reach your goal and gauge your overall success.

Success to you in 2011 from all of us at Inwest Title Services!

Weber and Davis County New Roadways Study is Moving Forward…, by Inwest Title a Utah Title Company

Friday, December 17th, 2010

Did you know that the Utah Department of Transportation is in the early phases of determining the future transportation needs of Davis and Weber Counties for the next 40 years, and are currently screening transportation alternatives, including expansion of the Legacy Highway, new arterial roads, road widening, and new interchanges?   The West Davis Corridor Study is currently in the process of making roadway determinations that will impact property owners and traffic patterns for years to come.

If you deal with real estate in Davis and Weber Counties then it is essential to stay informed of the possible changes.  Keeing clients informed of changes that could impact their property values positively or negatively will gain you respect as a real estate professional and client loyalty. If you are aware of these changes then you can help identify properties ideally situated to take advantage of future roadways and thereby increase their value, making your services invaluable.   Guiding a client away from purchasing property in the path of a future roadway which would be lost to eminent domain will make you a hero.

To see detailed information visit the West Davis Corridor Study Site.

To view the proposed alternatives go to the Maps Page.

It is not too late to get involved and make your opinion known.  Public meetings and comment period should begin sometime in 2011 and run into 2012.  You can even sign up for periodic email updates.  Check back often as we will post information about roadways selected during this process.

Utah Permits Report available now on Inwest Title Market Data Report 12-8-2010, by Inwest Title a Utah Title Company

Thursday, December 9th, 2010

Current Utah Permits Report available on Inwest Title Market Data Report. Check out county permit information at http://bit.ly/gVa5jc