Posted by Bud Branstetter on December 07, 1998 at 11:25:22:
Thanks Marvin for the reference.
I got to it by http://www.firstam.com/faf/html/news/chronicles/1000.html but still got there. I’m sure we will reference people to that when the question comes up again.
Title Insurance … an example for newbies - Posted by Carol
Posted by Carol on December 07, 1998 at 06:01:25:
From time to time I see, or hear, folks pooh pooh title insurance, so I thought on this early Monday I would give newbies an example of why we always spend the few $$ (or, have the seller do it for us!).
Last Jan we purchased a property. Duh. We knew that the then current taxes were in arrears, and our contract called for all such matters to be settled from the proceeds at closing (about 70% bank financing, 30% seller - who had a GREAT DEAL of equity).
In fact, we heard later that the previous private mortgage holder had paid some of the back taxes when the then owner did not in order to avoid problems with the property.
So, we go to closing, nice settlement statement, including a figure for taxes being paid, etc… and when I receive the 1998 tax bill (we pay in arrears), what do I see but the notation “BACK TAXES DUE, PLEASE CALL …”.
Turns out the county had supplied the title company with a statement that no back taxes were due for a given year, but once the “new computer system” was in place, lo and behold, $3400 worth of unpaid taxes showed up.
Well, guess whose problem it ISN’T… ours.
The Title company and the seller can slug this one out.
The county has disculpated itself, since apparently no government agency is required to give you accurate information - after all why should they be?
Just an illustration for those who wonder…
Carol
48 ways to lose it all - Posted by John Behle
Posted by John Behle on December 07, 1998 at 13:13:58:
For more information on title insurance risks, there is an interesting site at www.firstam.com/faf/html/news/chronicles/1000.html
This is the First American Title “Claims Chronicles” where they detail 48 interesting claims they have had to pay out. It is a good lesson in title insurance and the ways people can cause you damage or try to cheat you.
Re: Title Insurance … an example for newbies - Posted by Marvin Seawood
Posted by Marvin Seawood on December 07, 1998 at 10:43:16:
Carol,
Good example. See www.firstam.com/30Ea2a_c/faf/html/news/chronicles/1000.html for others.
Marvin
Re: Title Insurance … an example for newbies - Posted by Rob FL
Posted by Rob FL on December 07, 1998 at 06:24:57:
Working at a title company I can tell you horror stories all day long. I have seen people spend millions of dollars on a house only to find out that the person who sold them the house wasn’t the true owner. Without title insurance the new buyer might lose his entire investment. I have seen times when mortgages were accidentally not paid off at closing and 6 months down the road the new buyer starts getting foreclosed. Please everyone make sure you know what you are doing before you skimp out on title insurance.
Re: 48 ways to lose it all - Posted by BankRobber
Posted by BankRobber on December 07, 1998 at 20:16:48:
Good link. Read all 48 after the first time you posted this link about a month ago. It gave me some great ideas on scams to run if things get slow. My fav was the one where the 70 year old adverse possesion claim was ruled invalid because the assets of the University had been vested in the State by some obscure 19th century law.