Do I Need Title Insurance

Do I Need Title Insurance

Do I need Title InsuranceWhen it comes to closing on a house in Omaha, amidst all the paperwork, you might ask, Do I need Title Insurance?

Suppose as INMAN points out, “You receive a late notice in the mail for a loan you do not have. This notice says you have an equity line of credit, but you don’t.

Upon further investigation, you realize someone has stolen your identity and taken out a loan in your name. That loan has been recorded against your property, and now it’s in default. You are about to be foreclosed by the lender. Without coverage, you will need to hire an expensive real estate lawyer.

With Title Insurance, your monetary stake in your home is protected should someone else make a claim of ownership to your property after closing. What is the cost of Title Insurance? The average cost of owner’s or lender’s title insurance is about $2,000 or 0.05% of the purchase price of your home.

Title insurance protects real estate purchasers and/or lenders from losses that arise after a real estate settlement, but result from unknown liens, encumbrances or other defects upon the title that existed prior to settlement. Examples of title defects include outstanding property taxes not paid by a previous owner, fraud or forgery of a prior deed or transfer, or a spouse or unknown heir who steps forward to make a claim against the title.

Going into effect Oct. 3, 2015, will be a new Closing Disclosure (which replaces the HUD-1). It has the many fees that the borrower pays as separate line items. On the second page of the new Closing Disclosure under “Other Costs H7,” it says, “Title-Owner’s Title Policy” (Optional). In many markets, the seller pays for the buyer’s owner’s policy.

Although an owner’s title policy has always been an optional purchase for a buyer, it’s highly recommended, as it is a one-time fee that protects the homeowner and their heirs for life — even after they no longer own the property.

There is also an extended coverage policy available in most states. One of the great things about enhanced owner’s title insurance is that the coverage quickly increases to 150 percent of the value of the home purchased.

Federal law grants home buyers the right to choose their title service provider. Many home buyers don’t realize they have a choice. They just go with whatever company their real estate agent recommends. The Consumer Financial Protection Bureau has been cracking down lately on the cozy relationship some agents have with title companies.

Many state real estate commissions are adding language to their laws to discourage licensees from steering their homebuyers toward specific lenders or title companies. The practice that is now out-lawed, is thought to restrict the homebuyer’s choices and inflate costs. You as a consumer want to know that the service providers are the best and your broker has no conflicts of interest.

Styl Properties, Inc. is here to help homeowners out of any kind of distressed situation.  As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what!  There are no fees, upfront costs, commissions, or anything else.  Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.

Give us a call today at 402.909.0686 to let us know what YOU need help with!

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