How a Real Estate Title Company Copes with the Downturn

A real estate title company relies on a good housing market situation since their services are usually needed during the buying and selling of a home as well as when refinancing a mortgage loan. Unfortunately, the current slump in the housing industry has resulted to most of the local companies hanging tight.

For some title companies in Silverdale, Washington, such as the Pacific Northwest Title and Land Title Company, the market collapse can be compared to having the lights turned off and leaving them in the dark. Most of the title transactions involved short sales since most people were waiting for the right time to buy, sell or refinance.

But compared to a year ago, the title industry is currently optimistic. With buyers becoming knowledgeable about their rights, it would be easier for any real estate title company to explain their products and the benefits of being protected.

In the beginning of the year, title insurance carriers noticed a buildup in demand, most probably fueled by the government’s mortgage refinancing assistance program. But for the last couple of months, business has been rather slow. A lot of the local companies are taking advantage of the state’s program that involves the compensation of employees for as much as 60 percent of their salary if they agree to reduce their working hours.

Obviously, these title companies require much patience especially with the housing market yet to stabilize. In addition, the process involved in all the transactions has become more complicated, resulting to a longer processing period.

The local title industry is also worried about the state of the commercial market as compared to the residential market. Despite the fact that the former has held its own in the midst of the collapse, recovery for commercial is slower than what the industry would like. And based on the current trend, it is very likely that it will remain this way for a long time.

Riding out the storm is what a real estate title company can only do at this point in time. Although hanging on could be difficult, it is still better than giving up and closing business for good.