CWC Financial Newsletter

CWC Financial

1505 Bridgeway, Suite 121
Sausalito, CA 94965
Local: 415-331-3744
Toll-free: 888 711-5454

U.S. Treasury Bonds

Maturity

Yield

Last
Week

Last
Month

5 Year	3.30	3.38	3.37
10 Year	4.05	4.13	4.16
30 Year	4.84	4.90	4.95

Treasury Market Summary:

Treasury Market Makes a Run at a Rebound After Data and Oil Issues Weigh: The market held onto weekly gains, but was unable to recover the day's losses after Fed Chair Greenspan's crude remarks mid-session, which helped to weigh on an already offered market. The curve was wiggling around; coming in slightly steeper and immediately giving in to flattening, only to be flipped back into a steepening groove by the oil talk. Treasuries were battered through most of the latter part of the session, regaining a bit of ground into the close, grinding higher like the spunky instruments they are to settle in the middle of the range. A late day rush in oil prices, leading to a new 55.00 high on the Nov contract, in what has become a fairly common late session surge, helped boost the treasury prices into the close, along with day trading short covering heading into the weekend (chances are, regardless of how slippery oil becomes, nobody wants to be short over the weekends). The 2nd round this morning's run of data had put initial pressure on treasuries despite a mixture of positive and negative data. The less then expected 0.1% rise in Industrial Production was blamed on hurricane season, the hurricanes that rocked the SE region and are said to have knocked out 0.3% of growth leaving a far stronger 0.4% after adjustment. Capacity utilization was unchanged, the U of M sentiment index plunged to a year and a half low to 87.5 along with a 17.43 print on the Empire State manufacturing number, well below the 25.00 expectations. The week ahead is light in both economic reports and Fed-speak, and therefore oil and the dollar will become the reigning drivers of trade.

Economic Indicators for this week that could impact the mortgage or real estate markets include...

Building Permits	Oct 19
CPI	Oct 19
Housing Starts	Oct 19
Initial Claims	Oct 21
Leading Indicators	Oct 21

Title Insurance

The One Type Of Insurance—Besides Homeowners—You Must Buy To Protect Your Real Estate is Title Insurance.

Imagine buying a home and then discovering after you move in that the person who sold you the property did not own it. Impossible you say? Think again. Forged deeds are a real problem and just one of many problems you can run into as a buyer of real estate.

That’s why it’s important to have owner’s title insurance. Each state has different insurance laws, and some states require that all property buyers purchase owner’s title insurance, and other states don’t. If you live in a state that does not require owner’s title insurance, and you don’t get it, you have set yourself up for a financial catastrophe. Here’s an example of why you need title insurance.

A man and his supposed wife came in to the office to sign papers to sell their property. But as it turned out, the woman was not the man’s wife. He was actually divorced and was trying to unload the property without his ex-wife’s signature.

Now suppose you were the buyer on a transaction like this and did not get title insurance. The ex-wife would sue you, you would have to hire an attorney, you would probably lose the case, and you would have to pay the ex-wife whatever interest she had in the property. In some cases, you could lose the property.

Attorney fees alone can run into ten’s of thousands of dollars—or more. And forget about going after the crook who illegally sold you the property. They get their money and are long gone by the time you find out you have a title problem.

There are also—among other things—forged powers of attorney, easement problems, lawsuits filed by heirs to property that was sold illegally, and mortgage loans on property that buyers were not told about. Owner’s title insurance protects you against these problems. And unlike other types of insurance, you make a one-time payment only and the policy protects your equity in the property for as long as you or your heirs own it.

And don’t make this mistake either: Property buyers sometimes think they don’t need owner’s insurance because they’re buying the property from a relative and the relative says the property title is clear. But what happens if there is a $50,000 state income tax lien or IRS lien filed against the relative? That lien attaches to the property and if you buy it, it’s now your problem.

Title insurance costs vary from state to state. But to give you an example, a $200,000 owner’s policy in Oregon would cost you a one-time fee of around $700. That’s a small price to pay for protecting your home and having peace of mind.

One should consult with a qualified insurance planning professional prior to implementing any insurance planning strategies. If you are an mortgage planning, real estate, tax or estate planning professional receiving this newsletter, please call our office and introduce yourself to us. We are always seeking to grow our referral network and expose more service professionals to our client base.