builders not paying their subcontractors
I just got a hit on my short sale post over at RCG from a consumer who is buying new construction in Snohomish County and they're having trouble finding a title company to insure the builder.
What this means is that builders who are starting to go under frequently decide to not pay their subcontractors knowing that the title company will have to write the check to pay the sub in order to be able to ship a clear title policy to the new first mortgage lender.
Title companies are the canary in the coal mine.
Also duly noted: I just heard that a King County title company has reduced their staff hours. They had been on 4 day work weeks (in order to save staff and not lay off) and now they were just hit with another reduction in pay.
If you want to read my answer to the homebuyer, it's comment number 120.
http://www.raincityguide.com/2007/03/05/short-sales
What this means is that builders who are starting to go under frequently decide to not pay their subcontractors knowing that the title company will have to write the check to pay the sub in order to be able to ship a clear title policy to the new first mortgage lender.
Title companies are the canary in the coal mine.
Also duly noted: I just heard that a King County title company has reduced their staff hours. They had been on 4 day work weeks (in order to save staff and not lay off) and now they were just hit with another reduction in pay.
If you want to read my answer to the homebuyer, it's comment number 120.
http://www.raincityguide.com/2007/03/05/short-sales