Sacramento Blogs

Alliance Title Company has closed all its offices in California.

The title company had six offices in Placer County and three in Sacramento.

The California insurance regulator said Alliance’s closing and escrow accounts were being handled by Financial Title Company offices in many areas and also at First American Title Company.

Alliance Title, based in Campbell California, was a fast-growing player during the real estate boom of the past decade, when it grew from five branches to nearly 200. At its peak it had more than 2,000 employees.

Title companies are facing tough times because of the current real estate market. The number of home sales has been declining and with it the number of escrows that close. Title companies only get paid when an escrow closes, so when deals fall through, the title company doesn’t get paid for the time it has spent.

Additionally, the sales market is predominantly banks selling their foreclosed properties. The banks often don’t use a local title company, they process most of their escrows though just a few specialized escrow offices, usually located in Southern California.