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Old 06-27-2011, 09:02 PM   #21
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The $1,000 or so the seller has to pay for title insurance, mostly goes to paying somebody to search the property records at the county recorders office.
A good post. Only one quibble. The majority of the money designated as "title insurance" in a closing is actually a premium to the closing attorney. The title insurance company keeps very little to insure against defects in the title (which actually strengthens your point).
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Old 06-28-2011, 03:01 AM   #22
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A good post. Only one quibble. The majority of the money designated as "title insurance" in a closing is actually a premium to the closing attorney. The title insurance company keeps very little to insure against defects in the title (which actually strengthens your point).

Is that also true for states where attorney don't get involved in real estate transactions? Or does the issuance of a title insurance always involve an attorney.

Interestingly enough I just got my title insurance in the mail today. They sure make a lot of promises about things they will protect me from. Hopefully I'll never have to see if they actually do.
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Old 06-28-2011, 05:45 AM   #23
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Is that also true for states where attorney don't get involved in real estate transactions?
I don't know, but I'm going to see if I can find out.
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Old 06-28-2011, 06:06 AM   #24
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Originally Posted by Gumby View Post
A good post. Only one quibble. The majority of the money designated as "title insurance" in a closing is actually a premium to the closing attorney. The title insurance company keeps very little to insure against defects in the title (which actually strengthens your point).

Wow... this discussion brings up an important aspect of buying a home that no one (or very few) ever consider.... Solvency and Financial Strength of the Title Insurance Company.


Financial Stability RatingsŪ Title Insurance Companies

Since Title Insurance protect the Bank (unless one has an owner's policy).... hopefully banks are careful selecting their title insurance company.


But how many owners have done a due diligence check-up on their Title Insurance Company or purchased an Owner's Policy?

My guess is only people who hired a real estate attorney or did a lot of research.

We bought an Owner's Policy when we purchased our house. I relied on my attorney. He counseled us to buy an owners policy.



Title insurance in the United States - Wikipedia, the free encyclopedia


To complicate matters, it seems many title insurance companies use reinsurers.

Does anyone know if Title Insurance is backed by states if they fail (like other insurance policies)?
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Old 06-28-2011, 03:20 PM   #25
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Originally Posted by clifp View Post
Is that also true for states where attorney don't get involved in real estate transactions? Or does the issuance of a title insurance always involve an attorney.

Interestingly enough I just got my title insurance in the mail today. They sure make a lot of promises about things they will protect me from. Hopefully I'll never have to see if they actually do.
Just as an FYI....

A few months after closing on our house... we get a letter from an attorney saying that the taxes for the utility or water district had not been paid... blah, blah, blah and they were going to forclose on our house if they did not get money by such and such a date...

I contacted the title insurance company and they said 'send us that info and we will take care of it'... I did... and never heard anything about it again... SOOO, it seems that it does work.. at least for minor things...
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Old 06-30-2011, 05:34 PM   #26
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PMI Group Inc. (PMI), the third-largest guarantor of U.S. home loans, may be headed toward default following four years of losses, trading in credit derivatives shows.
PMI Credit Swaps Signal Mortgage Insurer Risks Default: Corporate Finance - Bloomberg
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Old 06-30-2011, 07:28 PM   #27
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How about this article i picked in my monthly VA Mortgage Newsletter...Why do i have this sinking feeling....


Buying After Bankruptcy

Rebuilding your life after going through bankruptcy requires perseverance and discipline. Yet the rewards are there: You can restore your credit and become a homeowner, despite a previous bankruptcy filing. Typically a borrower must wait two years after a Chapter 13 bankruptcy or four years after a Chapter 7 filing in order to obtain a home loan. Consumers who have gone through foreclosure proceedings generally can't purchase for five years.
Mortgage investment firms Fannie Mae and Freddie Mac have set these standards. Loans purchased by the two government-backed companies generally offer borrowers the lowest rates. However, it's possible to reduce the waiting periods to two years after bankruptcy, and three years on a foreclosure. We can do this by explaining to Fannie and Freddie how "extenuating circumstances" contributed to someone's financial difficulties.
Adding a letter to a loan application documenting the extraordinary reasons for a household's money struggles can gain leniency in rule interpretation. A family which experienced a serious illness and job loss at the same time is more likely to be given a second chance sooner than a household which simply suffered from a layoff. Your ability to make on-time payments today also needs to be documented. A stable income, strong recent credit history, and solid down payment help make your case. Let's review your financial situation together, and come up with a plan to purchase your own home. Today's great prices and low rates are just too good to pass up!
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