Open Forum

For all the non-title company attorneys on the list, foreclosures and deeds in lieu of foreclosures apparently have to be reported as well.

From the FinCEN website:

"The final rule also does not adopt the suggestion to exclude foreclosure sales, although FinCEN notes that foreclosure court proceedings wherein a lender obtains a judgment to foreclose on property would be excluded under the exception for transfers required by a court in the United States. Outside of such court-supervised foreclosure proceedings, FinCEN does not agree that potential reporting persons involved in sales of foreclosed property should be treated differently from other transfers, as such sales, where the property is sold to a third party, do not necessarily present a lower risk for money laundering."

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Cathy Clamp CTIP
Escrow Officer
Heart of Texas Title Co., LLC
Brady TX
+1 (325) 597-0796
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Kathy please look at the 16 exceptions.  Specifically numbers 3,4, 5 and 16.  

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Richard Giliotti
President
The Judicial Title Insurance Agency, LLC
Rye Brook NY
+1 (914) 381-6700
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Original Message:
Sent: 03-06-2026 12:22
From: Cathy Clamp
Subject: FYI - FinCEN also affects foreclosures and Deeds in Lieu

For all the non-title company attorneys on the list, foreclosures and deeds in lieu of foreclosures apparently have to be reported as well.

From the FinCEN website:

"The final rule also does not adopt the suggestion to exclude foreclosure sales, although FinCEN notes that foreclosure court proceedings wherein a lender obtains a judgment to foreclose on property would be excluded under the exception for transfers required by a court in the United States. Outside of such court-supervised foreclosure proceedings, FinCEN does not agree that potential reporting persons involved in sales of foreclosed property should be treated differently from other transfers, as such sales, where the property is sold to a third party, do not necessarily present a lower risk for money laundering."

------------------------------
Cathy Clamp CTIP
Escrow Officer
Heart of Texas Title Co., LLC
Brady TX
+1 (325) 597-0796
------------------------------

Richard,

I agree that banks and credit unions, along with subsidiaries of them, are exempted, but seller finance, where the Seller was an entity, and hard money lenders (where a small developer has a "financing entity" that handles the loan, rather than a bank)  would not be when they acquire the land back from the buyer. I don't know how much of an issue this is in other states, but in Texas, there are a LOT of "house flippers" where they purchase into an LLC, renovate and then seller finance the house. They then take it back by Deed in Lieu of Foreclosure if the buyer misses a payment or two. Texas does not have a public trustee system, and no requirement of judicial review of foreclosures, so it could be a big deal for attorneys in similar states. In addition, we have multiple companies that develop small subdivisions (10-20 larger acreage tracts) and seller finance with no down payment. 

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Cathy Clamp CTIP
Escrow Officer
Heart of Texas Title Co., LLC
Brady TX
+1 (325) 597-0796
------------------------------

Original Message:
Sent: 03-09-2026 12:07
From: Richard Giliotti
Subject: FYI - FinCEN also affects foreclosures and Deeds in Lieu

Kathy please look at the 16 exceptions.  Specifically numbers 3,4, 5 and 16.  

------------------------------
Richard Giliotti
President
The Judicial Title Insurance Agency, LLC
Rye Brook NY
+1 (914) 381-6700

Original Message:
Sent: 03-06-2026 12:22
From: Cathy Clamp
Subject: FYI - FinCEN also affects foreclosures and Deeds in Lieu

For all the non-title company attorneys on the list, foreclosures and deeds in lieu of foreclosures apparently have to be reported as well.

From the FinCEN website:

"The final rule also does not adopt the suggestion to exclude foreclosure sales, although FinCEN notes that foreclosure court proceedings wherein a lender obtains a judgment to foreclose on property would be excluded under the exception for transfers required by a court in the United States. Outside of such court-supervised foreclosure proceedings, FinCEN does not agree that potential reporting persons involved in sales of foreclosed property should be treated differently from other transfers, as such sales, where the property is sold to a third party, do not necessarily present a lower risk for money laundering."

------------------------------
Cathy Clamp CTIP
Escrow Officer
Heart of Texas Title Co., LLC
Brady TX
+1 (325) 597-0796
------------------------------