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All this talk about housing bubbles bursting, with the implication that this will bode poorly for FAF.

Now, I'm about as doom and gloom as you can get when it comes to the overleveraged public with no home equity and high mortgages. I was in a tiny Kansas town last week and saw the cutest 1930's bungalow with a 4 car garage and a double corner lot. It was in foreclosure for $24,500. (it needed about $12,000 in repairs). I was talking to the broker about this house, because--- well, because it was the cost of a car. He said that they've had record high foreclosures this past year, and it was only getting worse. They've been incredibly busy. The title insurance for all these homes was provided by FAF, who would travel to each small town to do the research.

That got me thinking...

I don't mean to profit by other people's pain, but if all these people won't be able to afford their homes, someone* is going to acquire it, right? Either through sale or foreclosure. It shouldn't really matter to the title companies how much the homes sell for. So, while I can think of other stocks that I might hesitate to invest in, I'm wondering if I even have to worry about my FAF...

What do you think?

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