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Unread 12-27-2009, 05:36 PM
 
28 posts, read 51,678 times
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Default Title Insurance with Short Sale

I have closed a short sale property. I thought about purchasing title insurance since it was a short sale. But, I've heard from my agent and title company that I don't have to get one since seller purchased title insurance for the deal. So, I ended up closing it without getting an insurance. Is it OK? If not. Can I still get one after closing?
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Unread 12-27-2009, 06:01 PM
 
Location: DFW - Coppell / Las Colinas
17,039 posts, read 14,128,806 times
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Call a local title (or 2) company and ask this question. Personally I would never, ever buy a home without title insurance especially on a short sale.

It may be too late but they may do a title search and if there are no problems issue the policy. If there are problems with the title you may be SOL. I would go back to the company the seller used back when they purchased if possible. They have covered it in the past and may be more willing to issue a new policy.

I'd like to know what you find out.
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Unread 12-27-2009, 06:06 PM
 
Location: Virginia Beach, VA
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When you closed on your home, your mortgage company REQUIRED you to purchase title insurance to protect their interest in the property. At the same time, you were offered title insurance as well, to protect you. I tell my clients, the mortgage company wants their interest protected, and they are just investors... you live there AND it is your biggest investment, why on earth wouldn't you protect yourself? You may always buy title insurance, however it is offered at closing at a smaller cost since they have just done the title searches, etc. BUT, I have found that MOST title companies will write your same binder up to 30 days aftet closing. Call them and find out.

shelly
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Unread 12-27-2009, 06:18 PM
 
Location: DFW - Coppell / Las Colinas
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Shelly, I'd bet he must have paid cash with no lender involved.
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Unread 12-27-2009, 06:28 PM
 
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Quote:
Originally Posted by Rakin View Post
Shelly, I'd bet he must have paid cash with no lender involved.
Lender is involved. It looks like they got title insurance for the amount of their investment.

Well ... it looks like that typically the seller does not purchase title insurance for the buyer. I've asked to the title company several times if I will not have any title issues, and heard that its possibility is ZERO since the seller paid insurance fee for me.
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Unread 12-27-2009, 06:43 PM
 
Location: DFW - Coppell / Las Colinas
17,039 posts, read 14,128,806 times
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Quote:
Originally Posted by CSL1919 View Post
Lender is involved. It looks like they got title insurance for the amount of their investment.

Well ... it looks like that typically the seller does not purchase title insurance for the buyer. I've asked to the title company several times if I will not have any title issues, and heard that its possibility is ZERO since the seller paid insurance fee for me.
Everything is negotiable but usually (in TX) a seller buys the policy for the buyer and the buyer buys a 2nd and less expensive policy for the lender. Not sure what you've got title policy wise but I would want one.

Being a short sell, the bank may have refused to pay for your policy ? I would go back to the company and get one put in place.

The title company can say there should not be a problem but what if there is ? A little insurance can save you a lot if there is a problem.
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Unread 12-27-2009, 06:50 PM
 
Location: Virginia Beach, VA
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if the seller (in a short sale, the seller is the owner NOT the bank) paid for your closing costs, including title insurance, then you should get a policy. Ask the title compny when you will be recieving your policy : )

shelly
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Unread 12-27-2009, 07:01 PM
 
Location: DFW - Coppell / Las Colinas
17,039 posts, read 14,128,806 times
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Many times on short sale the short sale lender will dictate what expenses they will or will not pay. They usually cut items like home warranties, commissions and conceivably a title policy.

As long as the buyers lender gets a policy they won't require a buyer receive one.
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Unread 12-27-2009, 07:06 PM
 
28 posts, read 51,678 times
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Quote:
Originally Posted by shellytc View Post
if the seller (in a short sale, the seller is the owner NOT the bank) paid for your closing costs, including title insurance, then you should get a policy. Ask the title compny when you will be recieving your policy : )

shelly
The seller did not pay closing cost but I did. I have recieved a copy of document
named "COMMITMENT FOR TITLE INSURANCE" which is composed with section A and section B. I believe this is a title insurance. My name and my lender are listed on this copy.
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Unread 12-27-2009, 07:14 PM
 
Location: DFW - Coppell / Las Colinas
17,039 posts, read 14,128,806 times
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Quote:
Originally Posted by CSL1919 View Post
The seller did not pay closing cost but I did. I have received a copy of document
named "COMMITMENT FOR TITLE INSURANCE" which is composed with section A and section B. I believe this is a title insurance. My name and my lender are listed on this copy.
Sounds like you are covered, I'd verify you are the main insured along with your lender.
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