Instead of a Pat On The Back....A Knife In The Back!

As a real estate attorney who has been practicing law for more than 30 years, and as the President of Tampa Title Company (a local title insurance agency that has been in the business of conducting real estate closings for more than 15 years), I know the important role that title insurance agents serve in every real estate transaction.

Unfortunately, title insurance agents have recently come under attack by State Senator Mike Bennett of Bradenton, who has introduced a bill (Senate Bill 260) in the 2010 legislative session which seeks to put title insurance agents out of business.

This would be an enormous mistake because title insurance agents are the persons on the front lines of every closing who are charged with the responsibility of doing all of the things that have to be done to enable a real estate closing to occur.

For years, title insurance agents have not publicized their important role in the real estate closing process. Often, we would simply do our jobs behind the scenes to correct title defects and pull potentially failed closings out of the fire, without “patting ourselves on the back.” It was simply part of the heavy lifting (and thankless job) that title insurance agents have done for years.

But, now that Senator Bennett is sticking a knife in the backs of all Florida title insurance agents, it's time to educate the public about the vital role that title agents fullfil in every real estate closing.

A title insurance agent’s job is risk elimination. We are charged with meeting a public expectation that when a person buys a home or commercial property they really do own it.

Unlike other types of insurance policies in which the agent acts primarily as a salesperson, a title insurance agent is heavily involved in the investigation of the current status of the title and all liens on the property, and it is the title agent’s job to do what is necessary to remove those liens against the property so that they will not adversely affect the new owner after they move into their home.

As if that isn’t enough, title agents are also charged with the responsibility to follow all of the lender’s tedious loan closing instructions (which are often 15 pages long), and closing the loans that fund our real estate closings. We also prepare the Settlement Statement so that the Buyers will know how much money to bring to closing and the Sellers will know how much they will receive from the closing. We obtain payoff letters from mortgage holders, homeowner’s associations, and many others whose debts have to be paid through the closing. We prepare deeds to transfer title, affidavits required for closing, supervise the execution of the documents, record the documents in the public records and file 1099 tax forms to report sales information to the IRS. We disburse the funds to close the transaction to pay off the existing mortgages against the property.

What we really provide is indemnity and security. For a one-time charge, a title insurance policy provides indemnity for as long as someone owns the property, and continuing protection after they sell it, in most cases, to cover losses arising from many sources including human error, fraud or mistakes.

Title insurance also provides coverage for things that cannot be discerned from an examination of the documents in the public records. For example, forgeries of prior documents in the chain of title are matters which are insured. In these days of increasing identity theft, title insurance coverage is even more important than ever.

And, yes, there are many title insurance claims which arise as a result of human errors in the closing process. The high volume of transactions that occurred in the last real estate boom has spawned many title claims already. However, in many cases, these errors are not discovered for many years—until the owners try to sell their property.

Another under-reported fact is that many of titles of properties that have been acquired through mortgage foreclosures have numerous title problems. With the prospect of 450,000 foreclosed properties coming back into the sales market in the coming years, it will be more important than ever to have qualified, experienced title insurance agents on the front lines, investigating the quality of the foreclosing attorney’s work, and clearing problems before they become the new buyer’s problems.

Without the skillful work that an experienced title agent performs, who will be there to ensure that the title to the home that you buy is marketable, so that you won’t have problems with your title when you want to sell your home in the future?

Please tell your legislators that title insurance agents are important--for once, we deserve a "pat on the back," not a "knife in the back."


Urge your legislators to vote against Senate Bill 260.


By the way, you may recognize Senator Mike Bennett's name. He is the author of last year's infamous Senate Bill 360 that gutted Florida's growth management laws and will now allow future development to occur virtually unchecked, without first determining if there are sufficient roads, utilities, schools, etc. to serve the new development. Senator Bennett is an electrical contractor who will likely benefit from last year's bill.

Those who have tried to educate him about this title insurance issue and who have tried to dissuade him from filing S.B. 260 this year have been repeatedly told by Senator Bennett, "I don't care."


So, last year Sen. Bennett didn't care about growth management, and this year, he doesn't care about quality real estate closings.


You should care that Sen. Bennett's term does not expire until 2012.

Jobs, Jobs, Jobs? Where, Where, Where?

I hate to admit it, but I often watch "Morning Joe" on MSNBC in the morning while getting dressed for work. It's hard to listen to that blow hard, Joe Scarborough, and his bobbing bobble-head sidekick, Mika, complain about all things Progressive, but I endure it for the guests that appear on the show, who occasionally offer something worthwhile.

For months, most people sitting around Morning Joe's studio have been critical about the President's "focus" (cue the laugh track) on passing a health care bill, and have harped that what's really needed is JOBS, JOBS, JOBS. "People don't want health care, they say, what they need is a job! " (That's because we are the only nation on earth that ties our jobs and our health care insurance together--but that's for another day.)

Hey Joe, people without health care want health care AND a job, but don't want the two tied together and dependent upon the job continuing. Just asking, but can you work if you are ill?

I'm afraid there's a dirty little secret that no one wants to admit. The President can't waive a magic wand and have jobs come back.

None of the commentators who continuously say "what we need is jobs, jobs, jobs...", tell us where the jobs are coming from or how they will be created.

Oh, the so-called free market capitalists (you know, the ones who detest anything Socialist), want the government to assist with job creation. "Give us more tax cuts." It's the same formula that got us in the current mess. Give tax breaks to corporations to encourage expansion, hiring, etc. And then the corporations move to another state (or overseas) a few years later and take those jobs elsewhere. (And please tell me again how these corporate giveaways aren't "Socialism"? Oh, yea, I forgot, welfare to corporations is good; assistance to individuals is "Socialism".)

I'm afraid the lost jobs aren't coming back. There, someone said it.

We are now reaping the fruits of the seeds planted back when Reagan took office and began dismantling Unions, and it has continued with policies that allow companies to outsource jobs overseas or to merge into "too big to fail" monsters that consolidate their operations and spit out jobs like watermelon seeds.

Let's go job hunting.

Are these jobs going to come back in the construction industry? Not in Florida where we have 450,000 homes in foreclosure that are going to be sold for prices that are cheaper than it costs to build a new one. An inventory this large, with people moving out of Florida faster than they are moving in, doesn't bode well for the construction industry anytime soon.

I heard today that Sam's Club is having large-scale layoffs. They want the fired employees to be hired by an outside firm (likely one that won't pay any benefits). Don't bother applying at Sam's for your jobs, jobs, jobs.

Banks? Nope. They are either collapsing or merging, and in both cases are leaving jobs in their wake.

Government jobs? All State and local governments are laying people off or putting people on furloughs.

Newspapers? Nope. They are shutting down left and right. And when they are gone, we won't need those jobs at the paper mills that made the newsprint, and the diner down the street from the mill will close, and the barber who cuts the hair of the mill workers won't have any customers, etc. We've seen this scenario play out already across Michigan. They won't be alone.

We have become a corporate-controlled society that in search of ever-increasing profits to shareholders send all of our manufacturing jobs overseas so that the corporations could obtain products cheaper and improve their profit margins on sales. What we forgot was that by displacing all those jobs here at home, there won't be a middle class to buy those cheaper goods.

What do we make here any more?

When will we insist that things need to be made here again if we want to survive--even if it costs more. Our local economies are interdependent. We need goods and services to be made here, to pay wages to that worker here, and then have that worker spend his or her money locally.

For years, we have done just the opposite. It has come home to roost. The jobs are gone, and they aren't coming back until we start recognizing these truths.

It's worse. The most lucrative segments of our economy make money from manipulating money. They don't make anything on Wall Street. They just manipulate and speculate. And, in recent years, they have created new financial vehicles to "make money." And they are too big to fail?

When are we in Florida going to decide to become the leaders of the world in manufacturing solar panels? When are we going to get serious about making and installing windmills in Florida? Let's build electric cars and hybrids instead of condo's. Let's recoup the tax breaks from companies who leave when the incentives are received. Let's recognize the value of the middle class.

There is no magic wand. There are no hybernating jobs, jobs, jobs waiting to awake from a recessionary nap. It's time to speak up for creating manufacturing jobs in the USA.

Wait, I just remembered two sectors that are hiring--the military and the defense contractors. Think we need to change our priorities? Make some noise.

Sam Gibbons Celebrates His 90th Birthday!

On January 20, 2010, Sam Gibbons celebrated his 90th birthday.

Growing up, I had two “Uncle Sam’s”—the fictional one that all Americans share, and my Uncle Sam Gibbons, a truly remarkable man, whose life story and achievements are amazing.

On the evening of his 90th birthday, 250 friends and relatives gathered to salute Sam at the year-old Hillsborough County History Museum. A panel of long-time friends and community leaders comprised of former Circuit Judge John F. Germany, Former State Attorney and Second District Court of Appeal Judge E.J. Salcines, and former State Senator, Education Commissioner and University of South Florida President, Betty Castor, participated in a discussion of just a few of the major accomplishments of the long and distinguished public service career of Sam Gibbons.

“Mr. Sam” as he was often affectionately called by many of his Congressional Constituents for 34 years, was in his element. Never adverse to public speaking, he was particularly eloquent, witty, poignant, reflective, and sharp Wednesday evening, and he had the audience hanging on nearly every word.

A two- hour program is hardly enough time to scratch the surface of Sam’s many accomplishments. Yet, he is always the first to say that it was his honor to have been able to serve our community, our state, and our nation in public service for 44 years. He is always humble and always gives the credit to those around him.

Much has been written about Sam’s distinguished service in World War II, as a paratrooper involved in the invasion of Normandy on D-Day. After surviving a hailstorm of bullets that night, he eventually met up with his unit and discovered that he was the highest ranking soldier who survived and immediately became the leader of his unit. He never relinquished that role of leader for the rest of his life. Our city, state, and nation are a better place because of that leadership.

In addition to being a wonderful brother, father, husband, uncle, and grandfather, Sam took on public service to give to others, and always had his focus on those less fortunate than himself.

He is a firm believer in the public education system and in pre-school programs, especially for the disadvantaged. That’s why he created the Head Start Program and arranged for the very first Head Start program to begin in Tampa.

He fought hard to get the State Legislature to approve a new state University in Tampa, and 50 years ago got a bill passed in the State Legislature to create the University of South Florida. Wednesday night, he gave most of the credit to John Germany for convincing Gov. Leroy Collins to sign the bill into law. Always giving the credit to others.

In Congress he was on the "right side" of votes for the Voting Rights Act, Medicare and Medicaid. He was a supporter of the war on poverty and supported urban renewal to improve the poorer areas of town.

When Spiro Agnew resigned in shame, it was Sam who pushed others in the House for Congressman Gerald Ford to be tapped as the Vice President. Sam could reach across the aisle to members of the other party like Gerald Ford and knew him to be honest and qualified to assume the position of Vice President in a time of scandal and turmoil. When Richard Nixon resigned, Gerald Ford became President.

Sam worked with Presidents Kennedy, Johnson, Nixon, Ford, Carter, Reagan, George H. W. Bush and Bill Clinton before retiring from Congress in 1996 after assuming the Chairmanship of the prestigious House Ways and Means Committee.

He is a strong advocate of Peace, having seen the horrors of war. He was instrumental in organizing members of the House to stop funding the Vietnam War when Sam told President Johnson that he didn’t believe that we could win an infantry war in Vietnam, and President Johnson replied that we were not there to win. So Sam began the process of getting enough votes to stop the funding of the war.

War Hero becomes Peace Activist.

Sam is an unapologetic staunch supporter of Free Trade. “Countries who trade with each other don’t go to war with each other.” He repeated that quote twice for emphasis Wednesday night. You know, he’s right about that.

If you have an IRA account that can grow tax free until you retire, you can thank Sam. It was his idea.

I could go on and on, and not begin to list all of Sam’s accomplishments. I can tell you that not a day goes by that I do not run into someone in town who he helped with a problem.

Sam was comfortable in the African American community, in West Tampa, or in the presence of foreign leaders and Presidents.

Sam and my Aunt Martha were the ultimate public servants. I hear it from people I run into every day. I am blessed to be related to them, but we are all blessed by what they have done for us in this community.

Big shoes reside in Sam’s closet. Big shoes indeed. I know I’m somewhat biased, but he is a Statesman, in every sense of the word.

Happy Birthday, Uncle Sam. We love you.

And as he said Wednesday, “Y’all come back for the 100th!”

It's Downright Anti-American

Here's a suggestion for the Democrats on Capital Hill. Here's an idea for real reform that is long past due and which should have wide populist support across the country.

Plain and simple, we need a single sentence bill to be filed in the U.S. House and Senate to read as follows:

"The Anti-Trust Exemption heretofore granted to insurance companies conducting business in the United States of America is hereby repealed."

Introduce it as a single subject bill. Allow no amendments. Push it to the floor of both houses. Require one of those famous "up or down votes" that the Republicans say that they love so much (or did during the Bush years).

Let's call the roll and let the votes be counted, and take names.

Up or down: Are you for or against insurance companies having an unfair trade advantage (including the ability to conspire together to fix prices) that NO OTHER BUSINESSES IN AMERICA HAVE (except Major League Baseball)?

Why do we allow this un-American advantage to exist only for insurance companies?

Are they so fragile that they can't compete on their own using the same rules that all other businesses have to comply with?

Surely, even free market proponents must have a problem with this stacked deck, too?

Don't threaten this; just do it! Now!

Do not pass Go, Do Not Collect Buckets of Campaign Contributions. Do Not Wait Another Day! Do it Now, before they use all of their profits and all of their power to buy the next election (which, by the way, became legal today thanks to "The Most Activist Judge of All Time" Justice John Roberts. (Much more about that later.....)

How about it Alan Grayson? Get 'er done!

Can You Hear Me Now, Democrats?

We've all seen the cell phone commercials with that annoying guy walking all around the country asking, "Can you hear me now?"

For months, supporters of the President have been wondering-- where is the passion and fervor of the campaign? Where are the policies of Change? When are Democrats going to use their power to pass progressive policies and reverse the course we have been on for the last decade?Why are the Democrats AWOL on pushing through anything meaningful in terms of reform?

Good grief, if you can't legislate real banking reform in this climate, when we are climbing out of a near collapse of our financial system, and public sentiment for reform couldn't be greater, then WHEN will it ever occur? What's the problem, Geithner got your tongue?

Can you hear me now?

For months, progressives have been gradually calling out for the White House and Democrats in the House and Senate to develop a backbone and actually legislate things that help people. (Seems to me that Bush got nearly all of his agenda passed with 51 votes or with "Say Goodnight, Dick" casting the deciding tie-breaking vote in the Senate(and telling the opposition to go "F" themselves on the way out of the Senate Chamber).

Why have we been so enamored with "60 votes," like a baby in his crib staring up at a mobile in amazement?"

Why is it that all of the things the President ran on, he now seems to run from?

All of the things the President detested during the campaign (lobbyists, secrecy, back room deals, bowing down to Wall Street, ending rendition, etc.) have been put on that big back burner at 1600 Pennsylvania Ave.

Obama has been kidnapped by O-Rahm-a.

Looks like someone left that big pot of Change on that big back burner too long and it is starting to boil over. Not only are liberals boiling mad, but independents also made their angry voices heard in Virginia, New Jersey, and now, in Massachusetts (of all places). And the exit polling in Massachusetts and New Jersey indicated that the voters' dissatisfaction was not that the country was leaning too far left, but rather that nothing was getting done.

Our calls are getting dropped.

Can you hear me now?

I'm frankly glad that we don't have 60 Democrats in the Senate any more. Fact is, we never did. Yet, the Administration sure acted as if they did. So, instead of charging ahead to pass things with 51 votes, we've spent months bowing down and bribing the likes of Ben Nelson and "Dick" Liberman. And, for what, to show voters around the country that Democrats aren't worthy of their vote?

Can you hear me now?

Maybe this ass kicking will wake up the White House and the Democratic majority so that they will realize that people are mad as Hell because NOTHING EVER GETS DONE in Washington!

Can you hear me now?

The President and the Democratic majority certainly didn't listen (or couldn't get "service") on Capital Hill when an overwhelming majority of Americans wanted a Public Option for health care.

They didn't hear us when we insisted that cost controls be put into health care reform legislation.

They didn't listen when we asked for the ability to purchase the same drugs manufactured by the same drug companies cheaper from Canada.

They didn't listen when people have sounded the alarm about the unavailability of loans to small businesses, and the absence of meaningful loan modifications for record numbers of Americans facing foreclosure.

Can you hear us now?

If Massachusetts jumping ship isn't a wake up call, then I don't know what will get Democrats' attention.

There are 10 months to legislate before the next election. We're watching and we're angry and we're taking names.

Can you hear us now?

Why Are We Piling On The Penalties On Middle Class Taxpayers?

Why is it that some of our laws tend to punish those who deserve it the least?


Our tax laws relating to retirement account withdrawals seem to be particularly out of step in this current financial crisis. Let's face it, this unemployment crisis and this recession is not showing any signs of letting up any time soon.


Hard working people who have, as a source of last resort, withdrawn money "early" (before the arbitrary age set many years ago of 59 and 1/2) are slapped with a 10% penalty for "early withdrawal" except in limited situations (which do not include, sadly, putting food on the family's table, or paying payments on the mortgage on the family home).


Ironically, if you have never owned a home before, you can withdraw the money from your 401k or IRA to buy a new home--but heaven forbid if you already own a home and a financial crisis has created a need for you to tap into your retirement savings to prevent becoming homeless before you reach 59 and 1/2.


Talk about bad policy.


While the 10% early withdrawal penalty has been put in place to "encourage" younger people to save for their retirement, there is also an under-publicized additional punitive penalty that often is imposed in addition to the 10% early withdrawal penalty.


Under IRS rules, the desperate act of tapping into your retirement account results in additional income being received in the year of withdrawal, and usually triggers an under-withholding penalty for the desperate taxpayers who can least afford to pay any penalties. Withholding rules are based upon how much money you withheld in the previous year. These arcane rules don't contemplate a desperate taxpayer who, as a result of having to tap into her retirement savings in a pinch, gets slammed with additional penalties and interest on top of the 10% early withdrawal penalty--and which couldn't be avoided by making estimated tax payments.


You see, emergency withdrawals from a retirement account aren't planned, and it's hard to make estimated tax payments to withhold enough money in advance of taking that emergency withdrawal.


Shouldn't the 10% early withdrawal penalty be enough pnishment to someone who is resorting to their savings of last resort to make ends meet? Why should there be additional penalties and interest levied on top of that?


Why, again, is the middle class being punished when others who have thumbed their noses at our tax laws for years are granted amnesty?


It is estimated that there are more than 19,000 customers of UBS who had illegal Swiss Bank Accounts and for years paid no tax on the earnings in those accounts and lied on their tax returns about the existence of those accounts by not checking that box on every Form 1040 that asks if you have any foreign bank accounts.


Yet, the IRS is willing to give these high net worth taxpayers amnesty from criminal prosecution and is not assessing penalties and interest against them.


When you compare those two scenarios, one can't help but ask: What's wrong with our values and our tax laws?


On the one hand, we have some taxpayers who did everything right. They worked hard, saved for their retirement, but watched hopelessly as their retirement savings were reduced in half by an unregulated financial system gone wild. Simultaneously, they also experienced an unprecedented tightening of credit such that banks literally stopped making loans (even though the banks were bailed out by the federal government).


So what is someone in that position supposed to do if they lose their job, or have an illness in the family, and want to keep a roof over their head, or make a car payment, or put food on the table for their children?


It is not surprising that millions of middle class Americans have had to choose the expensive option of incurring a 10% penalty for withdrawing money from their retirement account because they had no other option available to them.


It is time for Congress and the IRS to stop rewarding the tax cheaters, and stop punishing law-abiding taxpayers.


Steps need to be taken immediately to allow some penalty free withdrawals from retirement savings accounts and to grant amnesty for all penalties and interest incurred during the past 3 years, retroactively.


It's time for middle class taxpayer relief, for the folks who play by the rules--For A Change.

Oxymorons Still In Charge

At this time of year, people often ask if you've made any Resolutions for the New Year. My annual reply is "that I am going to learn how to juggle this year." Perhaps 2010 will be the year....

One Resolution that I've made is to be "more positive" in these blog posts this year.

Oh, don't worry, that doesn't mean that I won't continue to be cynical and sarcastic. But, in addition to my usual rants, I hope to offer some more positive suggestions or ideas along the way. Or if nothing else, I hope to add at least a little food for thought.

In reflecting upon topics for future blogs, I kept thinking of how many things are broken and how we really need to look at things with new eyes and new ears if we are going to right our ship.
One recurring thought was how language is cleaverly and deceptively used to lull us into submission or to distract us from real agendas.

It's scary how many of these words are really oxymorons, specifically designed to make us think something completely different. "Move along folks....nothing to see here...."

So, I offer these oxymorons as a starting point for some ideas of things you may want to think about and focus upon in the coming year. Pick a topic (or pick several) and think about how you can get active in trying to push things in a different direction. (It is up to each of us to bring about change.) Begin to look at these with new eyes and new ears and begin to speak up, with new ideas and new approaches, for none of these are what they appear to be at first blush, and none of these are headed in the right direction.

"No Child Left Behind"

"Health Care Reform"

"Clean Skies Initiatives"

"Hiking the Appalachian Trail" (Sorry... I couldn't resist the Gov. Sanford reference....)

"Military Intelligence"

"A Public Option"

"Medicare Advantage"

"Clean Coal"

"Safe Drilling"

"Compassionate Conservative"

"Homeland Security"

"Enhanced Interrogation Techniques"

"Campaign Finance Reform"

"Preemptive War"

"Deficit Spending"

"Transparency"

"Right to Privacy"

"Accountability"


Let's make 2010 the year when we decided that we weren't going to let the oxymorons stay in charge....Get Active!