Colony Title Group, Ltd.

Maintaining good credit is often one important aspect of people’s finances that they completely neglect until it is too late. First being aware of your credit score when you are applying for a home mortgage is too late. Did you know that most lenders require a minimum credit score of 680? Do you know what your credit score is?

Disturbing Facts about Credit Scores

• 79% of all credit reports have errors
• 25% of all credit reports have errors large enough to keep you from obtaining credit

Tips for Maintaining Good Credit

1. Occasionally obtain a copy of your credit report and go through it line by line to make sure everything is accurate. If you notice an error in your credit report, notify the credit-reporting agency as soon as possible.
2. Keep your credit card balance at less than 30% of your credit limit.
3. Be sure to pay your bills on time. Even just a few late payments can really damage your credit score.
4. Avoid going to a collection agency at all costs. If you are contacted by the collection agency, you have 30 days to resolve the problem before it appears on your credit report. A collection account can lower your credit score significantly!

Have any more questions? Contact the Real Estate experts at Colony Title!

We at Colony Title want to be your Title Company and real estate law firm. For additional information, please contact Tee Tillman at 410.884.1160 ext. 3007 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 of 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.

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

In a recent case involving a title company in Columbia and a large real estate firm, there were allegations that the title company had a “Marketing Agreement” wherein the title company made monthly payments to the realtor in order to obtain referrals for settlements from the realtor. The Real Estate Settlement Procedures Act of 1974 (RESPA) was designed to prohibit such activity and was purported to prevent realtors or builders from receiving “kickbacks” from title companies in exchange for closings.

The most recent rule change to RESPA  made obtaining mortgage financing clearer and, ultimately, cheaper for consumers. The new Rule includes a required, standardized Good Faith Estimate (GFE) to facilitate shopping among settlement service providers and to improve disclosure of settlement costs and interest rate related terms. The HUD-1 was improved to help consumers determine if their actual closing costs were within established tolerance requirements.

Unfortunately, in 1992 when Congress got around to approving some of the regulatory language for RESPA, it opened up the possibility of Controlled Business Arrangements or CBAs wherein the title company and/or the realtor lender or builder co-owned a title entity which performed settlements and both parties profited. There have been many permutations and combinations since then designed to foster the possibility of the realtor, lender or builder receiving compensation for the referral of settlement business. Unless the arrangement meets the criteria set forth in RESPA, the CBA could be considered a violation of the federal law initially written to prevent such arrangements. The allegations in the aforementioned case are that the arrangement did not meet the criteria of RESPA.

The unfortunate part is the consumer may pay higher settlement fees in order to “build in” the referral fee being paid to the referring party. Colony Title does not participate in any marketing agreements or referral fee structures. We are very proud of the fact that realtors and lenders who refer work to us do so because of our work product, not because we are paying for that referral. If you enter into a contract wherein the realtor, lender or builder discloses a CBA or marketing arrangement be advised that the party handling closing may not have your best interests at heart.

Rates unbelievably have been a lot better these past few weeks. A fixed 30 year is 3.5%, FHA is at 3.25% with significant lender help and 15 year fixed is under 3. It’s not known when these rates will turn up, but now is the time to act. We work hard to be your Title Company and real estate law firm. If you have a question call Colony Title at 410 884 1160 or email us at tee.tillman@colonytitle.com

We are once again having the Colony Title Invitational Tennis Tournament to benefit University of Maryland Shock Trauma, June 6^th at Hobbits Glen Racquet Club. Call or email for details.

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 of 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.

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

Source: RESPA – Real Estate Settlement Procedures Act, U.S. Department of Housing and Urban Development

Getting Title Insurance is a requisite for purchasing your first home. Though it’s a requirement, there are specialized terms that could be esoteric to many interested in real estate purchases. Regardless, it’s important to know some of these terms before you purchase any title insurance.

Title Insurance Terminology

•  Title Insurance: A loss-prevention insurance policy designed to protect you against legal defects in the title that happened prior to purchase.
• Owner’s Policy: This insurance policy covers  the homeowner.
  
• Lender’s Policy ( Mortgage Insurance): This insurance policy cover’s the mortgage lender.
  
• ALTA:  When it comes to purchasing title insurance, you will hear this term quite often. ALTA, American Land Title Association, is the leading trade association of title insurers. Throughout the U.S, ALTA policies are widely utilized and preferred by credible lenders.  Be aware of ALTA Residential and ALTA Homeowner’s policies before digging into residential property transactions.
  
• Escrow: This term refers to the funds that you provided as earnest money when you made the initial offer on the property. Your escrow holder, normally a title insurance company like Colony Title Group, places these funds into a special account. Once all obligations related to your property are met, these funds will get released. Typically, this step happens during a property closing.
• Titles Search:  Title agencies, like Colony Title Group, perform a thorough check of public records to make sure that the property is legally available for sale.
  
• Title Report: A report that contains the results of the title search.
• Abstract of Title: A document that shows the complete ownership history of a piece of property. This type of document normally has a listing of all past property owners, mortgages and liens.
• Encumberances: Legal interest in the land which may or may not affects its value. Normally, encumberances take the form of zoning ordinances, claims or unpaid taxes.
  
• Lien: A financial claim to the property. Essentially, this takes the form of mortgages, mechanic or contractor liens. It’s imperative to have liens paid off before a mortgage lender will even allow the property sale to take place.
  

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:

Title Insurance Terms to Know

Title insurance is like a game of chess, you have to make the right move in order to get checkmate.

To a great extent, securing property title insurance is an exercising a simple move in a chess game. Just as if you move your knight into the area of your opponent, title insurance companies refuse to insure properties with a history of legal uncertainties. Accordingly, the title examiner combs the records with an expert eye and identifies any potential problems, such as an unpaid tax assessment or a neighbor’s easement for right-of-way according to property right of way laws. The examiner then issues a preliminary report called a commitment, which lists these defects and informs you of any problems that the seller must correct prior to closing. If the company isn’t willing to cover a particular matter and the seller can’t or won’t correct it, you have a choice whether to live with the problem or bow out of the deal. If a title insurer refuses to write the policy at all, you can bet that the seller can’t give you good title.

That’s why it’s important to know not only what your title insurance will cover, but also what it won’t: what scenarios might arise in the future that would challenge your ownership of the property title deed. This chapter offers an introduction to titles, title insurance and various encumbrances that could endanger your ability to enjoy your home.

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.

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

Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceable of mortgage liens. Title insurance is principally a product developed and sold in the United States as a result of an alleged comparative deficiency of the U.S. land records laws. It is meant to protect an owner’s or a lender’s financial interest in real property against loss due to title defects, liens or other matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy. The first title insurance company, the Law Property Assurance and Trust Society, was formed in Pennsylvania in 1853.  The vast majority of title insurance policies are written on land within the United States.

Typically the real property interests insured are fee simple ownership or a mortgage. However, title insurance can be purchased to insure any interest in real property, including an easement, leaser life estate.

Trust Colony Title Associates!

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.

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! Also reach us via Twitter

Most people don’t realize that the price of most properties can fluctuate as much as your area’s climate change. It’s important to be aware of this since climate change can also have an adverse affect on your ROI. Here are some tips on assessing climate change.

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.

Sources:

How Does Climate Change Affect Real Estate

Rates have moderated and are currently at or under 4% for a 30 year fixed mortgage. Given the Fed’s comments and the European economic issues I don’t think anyone is predicting anything other than subtle movements up and down for the next few months. As I indicated in last month’s newsletter FHA streamlines with more attractive premiums are going to be in effect June 12. If you have an FHA loan with a rate of 4.75% or higher, that was closed prior to June of 2009, you should talk to one of our lenders, as you could reduce your loan payment without coming out of pocket.

This is the time of year for tax sales. When the property has unpaid real estate taxes from June of 2011, the jurisdiction where the property lies has an auction. The successful bidder must pay the taxes to the city and receives in turn a tax certificate. In order to redeem the property and reclaim it, the owner must pay the bidder the tax plus interest at 18% (in Baltimore City, but it can vary) and any attorney fees the bidder has incurred. The attorney fees and title charges are capped by state statute; nonetheless it becomes costly to redeem your property.  Most investors who purchase at tax sales are interested in properties that the owners will ultimately redeem, so the investor can get 18% on his/her money.  However once the statutory waiting period has passed, the investor may initiate a court proceeding to foreclose the right of redemption. If the property owner does not step forward and pay the taxes, interest and attorney and court costs, the investor can in fact become the owner of the property by court order.  They will then get a deed signed by the City or County official and become the owner of the property for the bid price plus costs.

If you are contemplating a foray into the tax sale realm, do some research and if you still have questions, give us a call. Tax sales are not for the faint of heart.

We want to be your title company and real estate law firm. For additional information, please contact Tee Tillman at 410.884.1160 ext. 3007 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.

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

As we have told you before, you have the right to choose your own title company, under Section 9 of the Real Estate Settlement Procedures Act (RESPA). And while that is all fine and dandy, it does you no good in actually finding a quality title insurance company.

Where do you begin?

Where do you look?

How can you be sure you are choosing a reliable title insurance company?

Choosing a Maryland Title Insurance Company

1. Do not let the seller, Realtor, or bank try and persuade you to choose their title company. As we have already said, you have the right to choose whatever title insurance company you want.
2. There are many title companies that possibly work exclusively with 1 real estate company, one lender or one homebuilder. While this is by no means a bad thing, some title companies take advantage of this relationship. So be careful.
3. While title insurance fees in most states are regulated by the States Department of Insurance, ancillary fees charged by title companies often times can create a significant difference from one company to the next. So shop around.
4. Compare the services different title companies offer. That, compared with the varying prices, should give you a good idea of what title company will give you the best overall deal.
5. Has the title agent worked in the industry for a while? Remember, experience matters when dealing with commercial deals, short sales, refinances, 1031 exchanges, bank owned properties, REOs, Seller Financed properties, Installment Sales, and more!
6.  Trust Colony Title Associates!

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.

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.

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

Sources:

How do I choose a Title Company?

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