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  • Comment Detail

  • Date: 01/29/20
    First Name: Michael
    Last Name: Merlo
    Organization: Lawyers Title Company
    City: N/A
    State: N/A
    Attachment: N/A
    Number: 2020-N-1

  • Comment

    These PACE loans have been a big challenge for the Title Insurance Industry. Borrowers don't really understand the problems associated with placing these against the property, and investors take advantage of them in order to do major improvement without having to qualify for proper financing. Some of these investors try to persuade buyers into taking title subject to these loans, which once against they don't truly understand what they are agreeing to.

    Even the financial institutions that service the debt are problematic. Most recently we have a problem with a payoff we made in August 2019 that contained a small sub-paragraph from the servicer that stated "This demand assumes the 2019/2020 taxes have been paid. That of course was impossible since the tax bills don't come out until November!

    In that transaction there were 3-separate PACE loans paid!

    In my opinion these should NOT be collected through the tax collectors office, they should be junior mortgages against the property. That way, their priority and disposition would be a lot more clear.