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Posted by catalpa on June 24, 2008, 7:16 pm
>I am buying a house for $615 K, with a mortgage of $415 K, in
> Massachusetts. On the HUD settlement statement, the title insurance is
> listed as costing $2635, with $175 being for the lender's policy and
> $2460 being for the owner's policy. Of the premium, it says the law
> firm retains $2108 of the premium.
>
I think you need to double check the numbers. For Massachusetts for a $615K
house Old Republic Title Insurance charges $1537.50 for lender policy only,
$2244.75 for owner policy only , but only $2419.75 for simultaneous lender
and owner policy. You will not save as much as you think with only a lender
policy.
Title insurance needs serious reform. Here in PA the Commonwealth nails
consumers by setting minimum prices for title insurance at high rates.
Consumers would be better served if states set maximum price rates for title
insurance, not minimum rates.
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Posted by Don on June 25, 2008, 4:31 pm
On 2008-06-24 13:18:13 -0700, beliavsky@aol.com said:
> I am buying a house for $615 K, with a mortgage of $415 K, in
> Massachusetts. On the HUD settlement statement, the title insurance is
> listed as costing $2635, with $175 being for the lender's policy and
Another concern involves identity theft. There has been a scam going on
in British Columbia recently, whereby a criminal actually is able to
take out a mortgage on a house without the homeowner's knowledge.
Later, the homeowner has to go through a costly legal process to regain
possession of the house. As it has played out, nobody has lost their
house, but, believe it or not, some courts have actually held that the
homeowner is responsible for repayment of the bogus mortgage! At any
rate, financial advisors in these parts are stressing the importance of
getting title insurance as protection from this kind of fraud. Whether
anything like this could be an issue in the USA, I don't know.
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Posted by Douglas Johnson on June 25, 2008, 6:15 pm
beliavsky@aol.com wrote:
>I am confident that sellers actually own the house. It's true I will
>feel like an idiot if I forgo the policy and a claim arises against
>the house, but with the $2460, I could I could increase the limits on
>my car insurance, or make several payments on a term life insurance
>policy. These types of insurance have far higher payout rates.
The payout rate doesn't matter. What matters is that you can withstand the loss
if you self insure. The sellers may think they own the house, but are you sure
there are no unrecorded liens, easements, or other title problems? Title
searches only find recorded stuff.
There was a recent case on the news where a owner abandoned a property in the
80's. The city mowed the lawn and neglected to file a formal lien. HUD took
over the property and sold it, supposedly delivering clear title. Now the city
discovers the debt, which with interest and penalties has grown to $20,000.
HUD has no records showing that they paid the debt and the city threatened to
evict the present owners. In the end, the city waved the debt, but still...
>It's not as if the title insurer is going to do any further work
>researching the title after the closing because I buy the policy. At
>this point I am only buying protection, not due diligence, and the
>cost seems wildly inflated.
Exactly. You are buying protection. The question is not how much it is costing
the title company, it is whether you afford to self insure. It is unlikely, but
possible you could lose the whole $615K.
-- Doug
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Posted by dumbstruck on June 25, 2008, 7:32 pm
Any exposure to court rulings giving back land to Indians?
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Posted by dumbstruck on June 29, 2008, 6:51 am
> Any exposure to court rulings giving back land to Indians?
No feedback on how this might be handled, if your house sits on land
granted by a treaty now in question? I thought a number of years ago
there were attempts at legal reperations or repatriation of Indian
tribe land in MA. Could come up elsewhere in the future.
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