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First time home buyer, Best title insurance company
Old 09-19-2017, 05:19 PM   #1
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First time home buyer, Best title insurance company

So my wife's dear niece and her husband, young couple, 2 small boys. Getting some kind of deal that they wont have to pay PMI, with a 3% down loan.

Now they call and say they arent required to buy title insurance. I only own this house, I have no clue about these things. I told them I was forced to buy it from someone the real estate recommended , I now know you can shop for this stuff, but I was already in sticker shock so I just wrote checks to everyone. I told them already you have to buy it, Its a FHA loan I think its a must. And you need to sleep good at night.

1) Am I right FHA requires it?

2)Best cheapest legit Title company. Property is in North Carolina, thanks

PS I tried getting online quotes but I have no clue what endorsements if any they need or what is standard.
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Old 09-19-2017, 05:52 PM   #2
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Anyone? The kids are going to be calling me soon for advice on this.
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Old 09-19-2017, 05:56 PM   #3
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Yes, the lender will require title insurance. I suppose they may be able to shop around, but title insurance is not that expensive, so not worth the effort in my opinion

Alas, if every dollar counts:

http://www.bankrate.com/finance/insu...surance-1.aspx
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Old 09-19-2017, 05:58 PM   #4
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I'm not really much help on North Carolina. When I lived in Maryland I ran across something called ground rent. This dated to much earlier times in MD where one person would own the land and someone would build a house on that land and pay rent for the use of the land. This was just so foreign for me that I avoided looking at any house under these conditions. It seemed to function well in MD.

I would find a real estate lawyer in NC and determine what is happening. I would think the purchaser would want to know... or maybe they do. When we purchased homes we got title insurance for us as well as the mortgage company. What one usually buys covers the lender, not the purchaser.
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Old 09-19-2017, 06:05 PM   #5
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Yes, the lender will require title insurance. I suppose they may be able to shop around, but title insurance is not that expensive, so not worth the effort in my opinion

Alas, if every dollar counts:

4 Ways To Save On Title Insurance | Bankrate.com
Thank you, I think they said 900 dollars. These kids are putting down 5k and no PMI I dont know how they pulled that off. Something about the USDA
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Old 09-19-2017, 06:06 PM   #6
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I'm not really much help on North Carolina. When I lived in Maryland I ran across something called ground rent. This dated to much earlier times in MD where one person would own the land and someone would build a house on that land and pay rent for the use of the land. This was just so foreign for me that I avoided looking at any house under these conditions. It seemed to function well in MD.

I would find a real estate lawyer in NC and determine what is happening. I would think the purchaser would want to know... or maybe they do. When we purchased homes we got title insurance for us as well as the mortgage company. What one usually buys covers the lender, not the purchaser.
OK thanks.
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Old 09-19-2017, 06:10 PM   #7
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maybe one of these
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Old 09-19-2017, 06:13 PM   #8
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Thank you, I think they said 900 dollars. These kids are putting down 5k and no PMI I dont know how they pulled that off. Something about the USDA
Yes, those USDA loans are a great deal if you qualify. Usually they are restricted to more rural locations, nor big cities.
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Old 09-19-2017, 06:16 PM   #9
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Thank you, I think they said 900 dollars. These kids are putting down 5k and no PMI I dont know how they pulled that off. Something about the USDA
My son & his wife just closed on a home. IIRC, they had 15% down, and I thought you needed 20 to avoid PMI. But he said their credit rating is excellent, so it was waived. News to me.

-ERD50
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Old 09-19-2017, 06:16 PM   #10
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Title Insurance is regulated, and pricing approved by individual states, same as other insurance.

Lender will require it. Though it often seems unnecessary, when it hits the fan again, and borrowers start defaulting, there will be claims against title policies. Legitimate or not, they have to be addressed and litigated. All part of the cost.

Nothing to pick from as to title insurers. Your relative should go with the closing agent that has with a good relationship with their real estate agent. That source of ongoing business will ensure the closing agent stays on it to get it closed and cleaned up afterwards. The closing agent will likely be owned by the title insurance underwriter or one of their agents.
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Old 09-19-2017, 06:17 PM   #11
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Wow, that is some list. thanks
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Old 09-19-2017, 06:18 PM   #12
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My son & his wife just closed on a home. IIRC, they had 15% down, and I thought you needed 20 to avoid PMI. But he said their credit rating is excellent, so it was waived. News to me.

-ERD50
Same here , I thought the 20 was standard too
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Old 09-19-2017, 06:20 PM   #13
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Title Insurance is regulated, and pricing approved by individual states, same as other insurance.

Lender will require it. Though it often seems unnecessary, when it hits the fan again, and borrowers start defaulting, there will be claims against title policies. Legitimate or not, they have to be addressed and litigated. All part of the cost.

Nothing to pick from as to title insurers. Your relative should go with the closing agent that has with a good relationship with their real estate agent. That source of ongoing business will ensure the closing agent stays on it to get it closed and cleaned up afterwards. The closing agent will likely be owned by the title insurance underwriter or one of their agents.
OK, good to know, so in case of trouble down the line, stick with a proven trusted guy. I like that, Ill pass this on to them. thanks.
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Old 09-19-2017, 06:24 PM   #14
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Recently sold in Michigan and had to pay for title insurance (local custom). The price was basically the same at all the companies I checked with. Your state may be different.
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Old 09-19-2017, 06:24 PM   #15
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Wow, that is some list. thanks
if you look at some of those, ... some guarantee the loan which may make PMI irrelevant. I don't know for sure... just guessing.

edit:-- note that this may make title insurance not required by the lender. I would still wonder if the owner may want insurance. But not knowing what is really going on, I would not have any good advice.
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Old 09-19-2017, 06:56 PM   #16
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Use a real estate attorney to do the closing and he will handle the title insurance. They all have a company they do business with.
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Old 09-19-2017, 07:03 PM   #17
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Use a real estate attorney to do the closing and he will handle the title insurance. They all have a company they do business with.
Yeah, I agree. She said the real estate had someone lined up. but they are balking at the 900 fee. Complicated by the fact they were told it wasnt mandatory in their situation. My wife sent them FlaGators response to about stick with the closing agents guy, its a reliable person to cry to if something rears its ugly head later on down the road.

I originally told them to shop around, but they really should get it required or not( I never heard of it not being required when you get a loan).
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Old 09-19-2017, 07:12 PM   #18
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The lenders policy protects the lender. They will want to have an owners policy to protect them. It protects against back taxes that the title company could have missed, a second mortgage lien or an inheritance issue. Where I live the seller provides it but it varies by area. I do home loans and through the years I have seen times where the back property taxes did not get paid and the owners policy covered it.
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Old 09-19-2017, 07:35 PM   #19
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The lenders policy protects the lender. They will want to have an owners policy to protect them. It protects against back taxes that the title company could have missed, a second mortgage lien or an inheritance issue. Where I live the seller provides it but it varies by area. I do home loans and through the years I have seen times where the back property taxes did not get paid and the owners policy covered it.
Thank you! And welcome to the forum.
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Old 09-19-2017, 08:41 PM   #20
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Title Insurance is regulated, and pricing approved by individual states, same as other insurance.

Lender will require it. Though it often seems unnecessary, when it hits the fan again, and borrowers start defaulting, there will be claims against title policies. Legitimate or not, they have to be addressed and litigated. All part of the cost.

Nothing to pick from as to title insurers. Your relative should go with the closing agent that has with a good relationship with their real estate agent. That source of ongoing business will ensure the closing agent stays on it to get it closed and cleaned up afterwards. The closing agent will likely be owned by the title insurance underwriter or one of their agents.
Title insurance does not protect the lender against the borrower defaulting. You are thinking of PMI (private mortgage insurance). Title insurance is just that - it insures the title is free of any liens or encumbrances. I worked in the industry for over 30 years. I cannot imagine any legitimate lender not requiring title insurance. Title insurance is not something you ordinarily shop for. Whatever contracts the closing agent has with whatever title company he works with is who will provide the title insurance.
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