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Progress reported in solving New Orleans' mortgage data crisis, but solution not yet in sight

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After a lengthy closed-door meeting Friday evening to discuss the computer problems at Civil District Court that are blocking real estate transactions in Orleans Parish, City Councilwoman Jackie Clarkson said some progress was made, though the problems are still far from solved. Clarkson, a real estate agent for 40 years, called the meeting after the New Orleans Metropolitan Association...

After a lengthy closed-door meeting Friday evening to discuss the computer problems at Civil District Court that are blocking real estate transactions in Orleans Parish, City Councilwoman Jackie Clarkson said some progress was made, though the problems are still far from solved.

Clarkson, a real estate agent for 40 years, called the meeting after the New Orleans Metropolitan Association of Realtors warned Thursday that the loss of computerized mortgage and conveyance records is threatening to "devastate not only the local real estate market but the overall local and state economy."

The meeting was attended by representatives of the court and its clerk's office, Mayor Mitch Landrieu's office, the city's information technology office and several real estate associations and companies.

Clarkson said the meeting showed that progress is being made on resolving the technological problems involved in restoring and indexing the missing computer files, but that there is still no timetable for getting everything back to normal. "We are nowhere near coming to a final conclusion," she said.

She said Clerk of Court Dale Atkins' office has agreed to accept the assistance of knowledgeable real estate professionals, provided that the volunteers are deputized and given necessary training in how the mortgage and conveyance offices operate.

With the volunteers, Clarkson said, work can proceed around the clock to restore the missing data.

The Realtors group had asked Gov. Bobby Jindal on Thursday to issue an executive order allowing Atkins to accept volunteer assistance from professional abstracters, title attorneys and the Jefferson Parish clerk of court's staff, who it said were ready to assist in manually recovering and indexing the data. Without an order from Jindal, the group said, Atkins "cannot accept the liability of volunteer workers."

A computer crash in late October caused the loss of online data that researchers need to go through before any real estate transactions can be closed. A 30-year check is done to determine whether the property involved is burdened with any liens, lawsuits, court judgments or other legal impediments to a sale.

"Without full restoration of this data, buyers will not be able to receive title insurance, nor a clear title on any property in Orleans Parish, which in effect completely halts real estate sales, " the Realtors group said.

Bruce Eggler can be reached at beggler@timespicayune.com or 504.826.3320.


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