Title insurance question

Question

I'm a first time home buyer and to be honest the entire home buying process seems like a daunting one. One area I've read alot about is the complete rip off title insurance and other closing costs can be. I've stumbled upon a online service called "my closing space" that claims to save on some of these fees hassle free. Anyone heard of this and/or would recommend using such a service?

Answer 1

*  In many states, title insurance is required.  The insurance co. investigates the property history to assure that the seller's ownership is legitimate.  If some hitch turns up after you buy, the company is liable for any costs/corrections/losses.

Answer 2

Ny has two zone, one can charge 275 for a search fee, the other cannot, so it depends on the county the property is located.  Yes, you will pay higher fees as this is a purchase transaction, but you are entitled to a re-issue premium for I believe 10 years after, maybe more.  The title is not your issue, it's the other fees, especially the mortgage tax and recording fees.  Depending on your loan amount and county, this could easily be anywhere from 6-12k on top of your loan amount.  NY is that expensive, right up there with FL.  The mortgage tax will clean your clock.  If you proceed with this online company, get disclosures, see what they will put in writing for their services, by law they have to.  If you want to test them, ask them who the attorney will be that signs the rp-5217 and tp-584, these are NY deed transfer forms that must be recorded with the deed, but generally the selling attorney prepares them, the point here is to test their knowledge as a NY attorney MUST sign the 5217, it's law. good luck and ask questions if need be

Answer 3

You are smart to watch your expenses when you buy a house.  YOu will have the most success if you take your escrow "officer" out to lunch. For $8 you will get a complete education in real estate fees.  She will have a list of all your fees. She can tell you where every one goes.  More important, she can tell you if everyone pays those fees or which ones are you getting "stuck" with.  Get to work. /

Answer 4

Title insurance is not a ripoff when you find out the previous owner has a lein no one knew about and now as the new owner your stuck with it. Or when the guy sold his parking space in a condo to his neighbor and didn't tell the buyers and never removed it from the legal description. I have a 100 stories just like that one from years working for title company's. While I have never heard of "my closing space" But if they are going to issue a policy protecting you from clouded titles they are infact insuring the title.  

Answer 5

title insurance may be a rip off but all lenders will require you to buy it for the leander as if there is ever a problem with the title of the house they can get there money back. unfortunately you will also want to buy title insurance for yourself so again if there is ever a problem with the title you can recover the money you paid into the mortgage. without it you will lose everything.