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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (11208)	6/14/2003 6:09:20 PM
From: Neeka	Read Replies (2) \| Respond to of 306849

Speaking of title insurance........... Does a title search address or discover concerns a county might have regarding sewer/septic issues with a residential or recreation property? The property I am referring to has a cabin, but a very illegal and unconventional septic system. M

To: ild who wrote (11208)	6/15/2003 11:40:24 PM
From: yard_man	Respond to of 306849

title insurance has to be transferrable, else how could it work. Does the bank need it on an exisiting mortgage?? I asked this very question in the process regarding the title search -- I was told that they had no way of knowing if I had taken a second lien on the property until they did the search -- being the cynical guy that I am, I just figured they get some split of the money on the title search and redoing the policy. I have a hard time believing they are going through the process for a couple of hundred bucks -- they have to get some share of the other funds, no??

To: ild who wrote (11208)	6/17/2003 1:14:41 PM
From: Mr. Sunshine	Read Replies (1) \| Respond to of 306849

TITLE INSURANCE <<Question: when you refinance with the bank that originated your mortgage does the bank need new title insurance?>> Yes, because it is a new loan. The new loan needs to be insured on its own merits, a new title insurance policy needs to be researched and issued. There may have been all kinds of title problems between loans. There is usually a discount if the previous title policy was issued less than 5 years before. Fair? A good deal? Probably not. Title companies have huge profit margins and seldom need to make payoffs, but that is the way the game is played, at least now. There is enough profit margin there that if you ask for a reduction in the rate you will likely get some price break. <<Concurrent question: when you take out the mortgage the bank obtains the title insurance. When your loan is sold what happens to this title insurance? Does it get rewritten to a new loan owner?>> The policy goes with the loan. If the loan is sold (say to Fannie Mae or Freddie Mac) the policy goes with it. If the loan is paid off (including refinancing) the title policy expires. Note that there are basically two types of title insurance. One is for the buyer to protect the buyer's interest in the property, the other is for the lender. The lender's policy is only needed when there is a loan. Hope that helps.