Comments on: Shop For Title Insurance & Save Thousands

By: 5 Questions You Must Ask Before Hiring A Real Estate Lawyer at sellsius° real estate blog

Wed, 03 Jan 2007 18:08:14 +0000

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By: sellsius°

sellsius° — Fri, 24 Nov 2006 17:32:07 +0000

Thanks Angela for clarifying the escrow cases where a consumer’s hand is tied. And yes, the discipline to set aside funds is not required when a bank pays. But consumers should know they may have a “choice”. They of course may opt for the bank. Then again, they may not. I chose to pay my own taxes & insurance. I am more conscious of changes in my taxes (& insurance) when I pay & have appealed increased assessments accordingy.

Nonetheless, where you can compare fees and premiums, do so and always inquire about policy discounts that may not be automatically disclosed to you.

Re: Tax late fees: I am not aware of lenders eating the late fees (I have seen the opposite when escrow statements were reviewed)—even if they did pay the late fees, they wll not “prepay” taxes that would give you a discount. The ability to take this discount and change insurance companies to save money may offset any incovenience—at least the consumer should know they may have options & let them make an informed choice. Most dont know they have the choice.

Yes, you are correct that it may take a million dollar loan to save thousands of dollars savings, but in many urban markets, those are very plentiful. Even saving hundreds is worth it, don’t you agree.
A client of mine saved a $350 new survey cost when one company agreed to accept the owner’s slightly dated one. That $350 had nothing to do with amount of the loan. Fees like this & a policy discount can easily add to a thousand even without a million dollar loan.

By: Angela

Angela — Fri, 24 Nov 2006 09:11:24 +0000

An impound/escrow account for the payment of property taxes is not necessarily a bad thing. Some borrowers do not have the discipline to set aside moneys for the payment of their property taxes and appreciate the convenience of having it automatically added to their mortgage payment. As you noted, if the lender accidentially pays the property taxes late, any penalty incurred is the responsibility of the lender.

In addition, there are some loans which require impound/escrow accounts. Most conventional loans in excess of 90% loan-to-value must have an impound account per federal regulation. The banks can not waive this requirement. Also, impound/escrow accounts are mandatory for government loans, both VA & FHA.

Some lenders may require the title company to be approved by their corporate legal department so it may not be possible for the consumer to opt for their first choice of a title company.

Many title companies are taking advantage of technology and offer “e-rates” or “single” rates which are substantially cheaper. If you can not get the title company of your choice, check to see if the title company offers discounted “e-rates.”

Lastly, in regards to borrowers, the Wall St. Journal article citing “thousands of dollars” can be saved is exaggerated. One would have to have a loan in excess of $1,000,000 to even begin to save a thousand dollars. It is another matter for sellers of a property.

By: Diane Cipa, General Manager, The Closing Specialists®

Diane Cipa, General Manager, The Closing Specialists® — Thu, 23 Nov 2006 04:16:01 +0000

Good advice. I am absolutely amazed at how quickly the industry is responding to consumer choice. Competition is good for the title insurance industry. It will lower prices while increasing the quality of service. Consumers – for your benefit and for the good of the industry, please shop.