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Child Support Collection Gets Boost from Title Insurance Industry

December 1, 2006

SACRAMENTO, Calif., -- Recent figures from the California Department of Child Support Services indicate that title companies, which serve has the primary source for the collection of child support liens in the state, recovered more than $80 million in delinquent payments during the 2005-06 Fiscal Year. According to these same figures, title companies have secured more than $330 million in delinquent child support payments since July 2002.

Full-protection title insurance relies upon an exhaustive search of the public record to identify and correct liens and encumbrances on property. A recent national study showed that title companies undertake corrective action in more than one out of every three real estate transactions. "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 and Title Association executive vice president Lawrence Green. "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 Assembly Bill 2126 by Assemblyman Ted Lieu (D-El Segundo). The legislation, supported by CLTA, streamlines the collection of child support payments in California and strengthens the enforcement of the law to protect children and parents who have a legal right to child support money.

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.

Source: The California Land Title Association



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