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foreclosure / title insurance....

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foreclosure / title insurance....

Old 03-11-2009, 12:11 PM
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Default foreclosure / title insurance....

Guys... I know all about not looking legal advice in a boating forum and all that, so before somebody mention it, I'm not looking for that...

Now, with that out of the way... I was wondering.... I'm dealing with a couple of mortgages brokers to get a good financing on a foreclosure...
My main concern is about liens, open permits, unpaid taxes, utilities, HOA fees, etc... So I asked my 2 brokers about the title company and insurance. Both agreed that usually in foreclosures the bank will offer to pay for the title search, examination or insurance only if you decide to do it with their company but....

one of these is telling me to pay myself for the Title Insurance...because, if the bank pays for the insurance the title doesn't get looked at very "throughly" in order to get the house sold. On the other hand if I pay for it they have to look for absolutely every little thing.


The other one is telling me not to worry, that Title insurance is Title insurance, and if something comes up later, the insurance company have to pay for it....

Does anybody here has any experience on this, inside info, or have heard of something along these lines before????
Old 03-11-2009, 01:03 PM
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I would find it very hard to believe that a title insurer would not look at the title very thoroughly when a bank is selling. Perhaps of more importance to you is the fact that most title policies conatin a creditor's rights exception in the boilerplate language. Depending on the state where the property is located and the manner in which the foreclosure was conducted, that coud prove to be a big issue to you. Ask your attorney.
Old 03-11-2009, 01:05 PM
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IMHO - Get your own title research done and title insurance policy.If you ever have to use it you want to make sure it was as thorough as possible and know exceptions are included in the policy.
Old 03-11-2009, 01:12 PM
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You buy title insurance for exactly what you're talking about. Generally you're buying it no matter what, because the bank says you have to. The bank is just financing it for you by including it in the closing costs. My bet is they would never pay for anything anyway, research it on google a bit. On average, insurance pays out 60% in claims, and title insurance pays out 5%. 95% for profit and markup, what a racket.
Old 03-11-2009, 01:34 PM
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Just a side note, Are we talking about lenders title insurance or owners title insurance? I assume we are talking about owners title insurance.
Old 03-11-2009, 01:36 PM
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Most title ins. cos. make the issuing agent liable for any errors or omissions so the end result is the agent does not want to pay a claim so they will a complete search. It does matter who hires the agent.
Old 03-11-2009, 04:10 PM
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Lenders buy mortgagee title insurance and you pay for it.

Get an owner's policy endorsement to the mortgagee policy. Theyll want to charge you promulgated rate (like list price), but the fee for the owners endorsement shoul be a couple of hundred.
Old 03-11-2009, 06:34 PM
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don't listen to any of this advice, get yourself a qualified real property attorney before you sign the contract. I handle many of these transactions and you really need someone whose sole job is to protect you. It'll cost you a little more but its worth it.
Old 03-11-2009, 06:58 PM
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Originally Posted by agkpa95 View Post
don't listen to any of this advice, get yourself a qualified real property attorney before you sign the contract. I handle many of these transactions and you really need someone whose sole job is to protect you. It'll cost you a little more but its worth it.
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