Although I can not speak for the companies mentioned in your post. Maybe I can give you some reasons that a client would use a company that does a great deal of out sourcing to other abstractors.
1) Their independent may not have E & O insurance & their company policy has changed & they now require E & O
2) They have a relationship with the out sourcing company, through other areas and they like that comfort zone.
3) They may have only done work in a few counties and now need to have coverage in the whole state. It is easier for their people in the office to call one number & get all the information they need from that one call.
4) It may cost more for the initial search - but they save money in their office because they don't have to hire as many people to do follow-up.
5) There is usually someone in the office of the out sourcing company at all times that will be able to help them with their questions or problems. Sometimes it is harder to get in touch with an independent, it they are out in the field. They could be in a Court House that doesn't allow cell phone use. Or they are in a "dead area", or the independent doesn't have a cell phone or will not give out their cell phone number.
6) Some companies like to be able to send all their mortgage filings out to one place & have that company, do all the tracking & follow-up. (Not to mention examine the documents for problems)
7) Some abstractors like this arraignment, because although they may be one of the best abstractors, they are not "people persons" & do not like dealing with clients. Especially when the "client" is a person that has worked in the title industry for about a week & wants to tell you how to do you job.
8) One bill coming from one abstractor is easier to handle the 100 bills for 100 abstractors. (However I might add that sometimes this is not good for the abstracting company, because, that bill being larger sometimes gets put on the bottom of the pile & sometimes doesn't get paid completely & other times not at all.)
These are just a few that I could think of off the top of my head. It is important to remember that there are good abstracting companies & some that are not so good - just as there are independents. As most of you know I out source most of my work. I would like to think that I am one of the good companies. I have been an independent abstractor, worked as an abstractor for small & large title companies, worked for a vendor management company. Have owned & operated AccuSearch for 8 years. I value & respect the abstractors that do work for me. I don't try to beat them up on their fees. We try to have all our abstractors paid by the 15th of every month. I don't call my abstractors every 5 minutes on their cell phones, or call every county they cover & try to track them down, if at all possible. (There are sometimes emergency situations that do arise.)
I don't think that just because a company is now using an abstracting company instead of you, means that you have not done a good job for them. Some companies just want to make it easier on themselves. The important thing is that you are still getting the work. If you do find that one of your clients is using a company that out sources work, get in touch with that company. Let them know that you have done work for that client in the past & would like to be added to their list of abstractors. I know we are always looking for good abstractors. We do actually put everyone in our database. You might not get work from us for some time, but that may have nothing to do with you or your work. It is usually because we don't have the work to support it.
Regards, & Happy New Year to Everyone,
Wanda Steudel
AccuSearch Co.
to post a reply:
login - or -
register