CLTA News Express
An Express Article from the California Land Title Association
Delinquent Child Support Collection Gets Boost from Title Insurance Industry
Title Companies Have Recovered Hundreds of Millions in Delinquent Payments
Bulletin 07/08-50 - October 29, 2007
Recent figures from the California Department of Child Support Services indicate that title companies, which serve as the primary source for the collection of child support liens filed against real property, helped recover more than $49 million in delinquent payments during the 2006-07 Fiscal Year. According to these same figures, title companies have helped California collect more than $320 million in delinquent child support payments since July 2003.
“Title companies play an important role in the collection of child support in California, which often goes unrecognized by regulators and consumers,” said California Land Title Association executive vice president Craig Page. “Not only do title insurers undertake an exhaustive search of public records to protect property owners, they coordinate with government agencies to identify and recover delinquent child support, spousal support and tax payments that would otherwise have gone uncollected.”
Earlier this year, Governor Schwarzenegger signed into law Senate Bill 892 by Senator Ellen Corbett (D-San Leandro) to help the state Department of Child Support Services and local child support agencies automate the filing of real property liens against delinquent child support obligors. This legislation was one of two recent bills supported by the CLTA to strengthen the enforcement of the law to protect children and parents who have a legal right to child support money. Last year, the CLTA supported Assembly Bill 2126 by Assemblyman Ted Lieu (D-El Segundo). That legislation was also signed into law by Governor Schwarzenegger and will help streamline the collection of child support payments in California.
Title insurance is used by homebuyers and lenders for protection against back taxes, undisclosed liens, legal judgments, forgeries, fraud and a host of other potential legal/financial problems that can arise when purchasing or refinancing property. Most of the title insurance premium goes towards identifying and eliminating these potential problems before the close of escrow. Consumers pay only once for title insurance – there are no monthly premiums – for coverage that lasts as long as they own the property.
