Please note - the delinquencies are not Sub-prime or alt-A — they are Prime, the highest quality borrowers possible.

Hi, sounds to me like you could not do a note and deed of trust at a sale since the seller would need to pay current taxes at settlement, to provide good title in complaince with ALTA.

As a regulator I investigated for compliance in things like the TIL, RESPA, ALTA requirements, and on and on.

A note purchase is not a real estate transaction covered under ALTA, TIL, or RESPA.

The most I've seen is what BIll referenced with American Land Title Association's (ALTA) recommended "Standard Procedures", which stipulates that the buyer's lender be fully aware of the transaction before moving forward.Not to say that there aren't laws, regulations, or organizations out there in some state that do ban, prohibit, or regulate them by statutes or by something more than just recommended procedures, but I have yet to find a single one.Will, please enlighten me if you can.

A second, IMHO, is that some estimates do not seem to account as heavily for Option ARM recasts and ALT-A ARM resets.

Such preliminary title insurance report shall indicate that the form of title insurance contemplated by the report is a ALTA Owner's Policy Current updated titlecommitment with copies of all the underlying documents;i) The survey of the Property in the possession of the Seller; Buyer shall pay for any updates;j) Copies of any and all current or pending litigation, or notices of compliance work required by any authority, including but not limited to any agency of any local, state or federal government, concerning the Property;k) Copies of all Phase I and Phase II environmental engineering assessment reports in the possession of the Seller with respect to the Property, including details of any remedial environmental work currently under consideration, in process or performed on or in the Property during the last ten (10) years, including a detailed schedule of all such work which is either required by statute or law or which is contemplated or required hereinafter;l) Copies of any and all correspondence in possession of Seller from any local, state or federal government agency regarding (a) any zoning or re-zoning notices or applicationswith respect to the Property, or (b) any modifications to any highway or street which would in any way effect the Property, or (c) any existing or pending changes to FEMAflood maps directly affecting the Property that are in Seller’s possession;m) Copies of any and all correspondence in possession of Seller from any local fire department with respect to the Property.Should the Buyer find exception to any of the foregoing materials or to any studies thereof, then and in its sole opinion, the Buyer may terminate the Purchase Agreement upon written notice to the Seller prior to the expiration of the Feasibility Period.

My parents are also looking at buying a mobile home park or apartment complex in the next few years after the alt A loans adjust sometime after December.

CA has about 350 Billion in Alt A and Option ARM loans that will be recasting/resetting in the next 30 months or so.

The numbers I've seen on the Alt A stuff are that 40% are delinquent before the recast and something like 90% of them are underwater.