Colony Title Group, Ltd.

The FHA is having it both ways. Follow along and I’ll try to explain. First, the FHA notifies its brokers and lenders on February 27th that it will increase the premium structure on new loans for single family homes. The new structure will take effect on FHA cases assigned on or after April 1, 2012. The details asset forth in the release are that the annual mortgage insurance premium (monthly) will go up by 0.10% for loans under $625,000.00 and by.35% for loans over $625,000.00. The upfront premium (payable at closing) will increase by .75%. Purchasers who initiate FHA loans after April 1 will have to pay more to FHA at time of closing and slightly more in their monthly mortgage payment. While probably not a deal breaker in most instances, for those buyers who are tight on funds and qualifying, they should consider getting under contract and making loan application prior to April 1. FHA states that the increase is to bolster their reserves, which is understandable given the numbers of foreclosures, which FHA has insured.

On the other hand, FHA is agreeing to reward current FHA borrowers who may be considering refinancing. In the industry there is a type of FHA refinance called a streamline whereby the borrower can lower his or her monthly payment by lowering the interest rate, without the need for an appraisal, and a minimum credit check. If the borrower has been current and wants to go the streamline route, FHA is agreeing to lower the upfront mortgage premium required by 0.10% and lower the monthly premium by 0.55%. With 3.4 million mortgages, which have been endorsed on or before May 31, 2009 above five percent in interest, this is a huge concession to allow faithful borrowers to lower their payments with little or no cost.

Confused? Don’t be. It appears that FHA is trying to keep the responsible borrowers in the fold while charging a little more for those joining the club.

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410 884-1160 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

Colony Title specializes in real estate title insurance, real estate settlement services, and real estate closings in Baltimore, Columbia, Maryland, Washington DC, and Virginia. Our staff consists of licensed Title Insurance Agents, Real Estate Agents, Settlement Processors, & Attorneys to handle all of your real estate needs.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

When buying a for sale by owner (FSBO) property, it is incredibly important to hire a title insurance company to perform a title search and also purchase owner’s title insurance. This is because when you buy a property directly from the owner, they are not required by law to provide you with a proper seller disclosure or adequately disclose any encumbrances that may be on the subject property.

This puts you, the buyer, at risk!

Hiring a title insurance company to perform a title search and provide you with owner’s title insurance helps protect both you and your investment. Title Insurance is a one-time fee, there’s no deductible, and it covers you for the lifetime you hold financial interest in the property. So why wouldn’t you purchase owner’s title insurance?

In today’s economy, homeowners are attempting to cut costs when selling their property in order to maximize profitability. Because of this, FSBO properties are becoming more and more frequent.

Hiring a title insurance company will ensure that all outstanding judgments, liens and taxes will be taken care of at closing and that you buy a home free and clear of all liens. So if you are buying a FSBO property and are in need of a title insurance company, contact Colony Title Associated today to learn more about Owner’s Title Insurance.

The Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410 884-1160 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

Colony Title specializes in real estate title insurance, real estate settlement services, and real estate closings in Baltimore, Columbia, Maryland, Washington DC, and Virginia. Our staff consists of licensed Title Insurance Agents, Real Estate Agents, Settlement Processors, & Attorneys to handle all of your real estate needs.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

Sources:

Buying a FSBO

When you are buying a home and spending thousands upon thousands of dollars in closing costs, the last thing you want to think about is shelling out even more money for something as seemingly unimportant as owner’s title insurance. But before you write off owner’s title insurance as unnecessary expense, give this blog a read.

Not only is owner’s title insurance a great investment, it is also incredibly affordable.

What is Owner’s Title Insurance?

Owners title insurance protects the purchaser from any title claims arising from the previous ownership. The owner is protected from such problems as fraud, forgery and filing errors.

Why Do I Need Owner’s Title Insurance?

A title search is performed on each transaction. The title records are only as good as the documents recorded. If a previous owner perpetrated a fraud, committed a forgery or the clerk of the land records failed to record or recorded incorrectly, the purchaser is unprotected without owners title insurance.

With the coverage, the title insurance company incurs the expense of determining the validity of a claim and defending against the claim. If there is a title defect, the title insurance company pays the claim so that the purchaser retains ownership without loss, or compensates the owner for any and all losses incurred as a result.

How Much Does Owner’s Title Insurance Cost?

Owner’s title insurance is a one-time premium set by the State of Maryland Insurance Commission. Rates are calculated on the basis of the purchase price of the home. The higher the purchase price, the more title insurance will cost.

The cost of the owner’s title insurance premium is modest in comparison with the potential loss from a claim. Whereas a legal defense of property title may start at $5,000, you can get Title Insurance with Endorsements for a handful of hundreds.

Title Insurance is a one-time fee, there’s no deductible, and it covers you for the lifetime you hold financial interest in the property. 

To learn more about Owner’s Title Insurance, please contact the Maryland real estate insurance experts at Colony Title Associates by calling 410 884-1160 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

Colony Title specializes in real estate title insurance, real estate settlement services, and real estate closings in Baltimore, Columbia, Maryland, Washington DC, and Virginia. Our staff consists of licensed Title Insurance Agents, Real Estate Agents, Settlement Processors, & Attorneys to handle all of your real estate needs.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

Sources:

Land Title Blog: Title Insurance is Affordable

Section 9 of the Real Estate Settlement Procedures Act (RESPA) “…prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.”

The purposes of RESPA is…

1.    to help consumers become better shoppers for settlement services and

2.    to eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.

Sellers are barred from requiring you to use their affiliated title insurance company. This means that it is entirely up to YOU, the buyer or borrower, to select your own title insurance company.

Why is this important?

1. It is important that you find a title insurance company that works for YOU.

2. It is important to have great communication with your title insurance company.

3. Choosing your own title insurance company can save YOU money.

4. Ensure that YOUR best interests are being looked after.

Enforcement

• Individuals have one (1) year to bring a private law suit to enforce violations of Section 8 or 9.
• Lawsuits for violations of Section 6, 8, or 9 may be brought in any federal district court in the district in which the property is located or where the violation is alleged to have occurred.
• HUD, a State Attorney General, or State insurance commissioner may bring an injunctive action to enforce violations of Section 6, 8 or 9 of RESPA within three (3) years.

If you have any questions, please contact the Maryland real estate insurance experts at Colony Title Associates by calling 410 884-1160 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

Colony Title specializes in real estate title insurance, real estate settlement services, and real estate closings in Baltimore, Columbia, Maryland, Washington DC, and Virginia. Our staff consists of licensed Title Insurance Agents, Real Estate Agents, Settlement Processors, & Attorneys to handle all of your real estate needs.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

Sources:

Why choosing your own title company is important.

More Information About RESPA