Mercury Companies Inc., a Colorado-based holding company that’s closed down its title and escrow companies in California, Arizona, Texas, Oregon and Nevada says it’s in negotiations to sell its remaining title companies in Colorado to First American Corp.

A spokeswoman for First American would not comment on the announcement by Mercury, which claims the companies are negotiating interim financing for the sale of Mercury’s Colorado companies, including Security Title, First American Heritage, Title America and United Title Company.

"While rising economic pressures and a declining real estate market forced Mercury Companies to close its operations in Arizona, Texas and California, its 60-year-old Colorado title companies continue to remain profitable and maintain strong market leadership, sharing approximately 30 percent of the Colorado market," Mercury said in a statement.

On July 29, Mercury shut down its title and escrow subsidiaries in California, Texas and Arizona, including Financial Title and Lenders Choice Title, after the parent company was reportedly denied additional credit by lenders (see story).

Mercury abruptly shut down California-based Alliance Title in December, and now faces lawsuits by the California Labor Commissioner and former employees who claim they are owed unpaid wages and expenses (see story).

First American, which is the sole underwriter of Financial Title and Lenders Choice, is helping clients of those companies with pending transactions move them to closing. Those with pending transactions are advised to call (925) 249-2819 for more information.

First American is also engaged in a legal battle with Mercury over its stake in the company and millions in loans dating back to 2001. In a press release Friday, First American put the carrying value of its investment in Mercury at $37.3 million, but said its write-downs of the investment could affect preliminary second-quarter earnings of $42 million (see story).

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×