Suzanne: I would read schedule B of the title policy (Exceptions) and ask them to line out any that cause you concern. If the want to get off the hook for this type of liability, it will likely be listed there. There is of course more to come, and we will pass along whatever we find. Thanks for your nice comments.
Thanks for the advice, have to admit, have never actually read the title policy, going to this time.
Very good advice for home buyers and their agents. Purchasers should fully understand the rules of the game in an REO transaction.
The colors of winter in Maryland. Life is good in Montgomery County!
Great follow-up article, Steve; I'm so sick of "the banks" I could scream
At some point it would be nice to see banks held to the same rules as other sellers. Seems like they do what they want and we agree or move on. I have approached our Board. If they are listed on our Board they should have to follow the same rules as the rest of us.
Banks try too hard to get buyers to use their title company. Many offer to pay for an owner's title policy if their comppany is used. I think they are trying a little too hard, and strongly suggest to my clients that they use another company.
Roy: That's the point, to inform the Buyers, so they can make intelligent decisions.
Virginia: I am with you on that. Unfortunately we are stuck with them.
Randy: We may not be able to force compliance by the banks, but the REO Listing Agents may have to pony up some fines/fees. Some are making serious money and violating rules on the banks behalf.
Mike: I have speculated before they were cutting corners, and advised my buyers to not use the bank's title company, for this reason. Chicago Title (Tri County Abstract-St. Cloud) has stated they will cover this on owners title.
Another issue that arises is if a buyer purchases an REO, then proceeds to renovate it, spending thousands of dollars in the process.
They need to go back after they have done this and increase the amount of title insurance coverage just in case something happens, otherwise, they will only be made whole in the amount of the original purchase, Ouch!
Great series, by the way.
Great advise Susan. That's why you are the go to person in Old Town Alexandria! Thanks for taking another layer off the old onion:)
Steve, part 2 was just as good as part 1. Thanks for good information, so glad I purchased title insurance when I purchased a HUD home recently, am in the process for a VA home how and will definitely get the insurance. Thanks for your post.