Title,Insurance,Checklist,The, finance, share, loan Title Insurance Checklist
Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track
The following is a review of certain, but not all of the title insurance issues which you may encounter in a loan transaction, and of procedures that may be considered in dealing with title insurance coverage or the general processing and closing of loan transactions. This is only a highlighting of certain steps to be taken, and may not be comprehensive. In all title insurance related dealings / actions, keep in mind that there are two separate and distinct contracts in existence in each insured loan transaction: (This does not include a third contract, with the escrow agent.) · The contract between the lender and the borrower · The contract between the insurer (title co) and the insured (lender) Theres often a tendency to underwrite a loan with the thought that youve received and reviewed a preliminary title report, possibly addressed any questionable items on that report, and that your primary remaining concern with respect to title insurance is being sure the actually policy is being obtained at closing. Knowing that title insurers may attempt to deny coverage, there are a number of steps that can be taken to improve your chances of getting coverage. Certain seemingly normal actions or omissions by a loan originator may have a significant impact on the insurers ability to wiggle out of providing coverage. When Originating New Loans 1) Expand your loan application to include a property addendum, which may include, among other things: · a clearly spelled out description of the property, including a description of the improvements (i.e. a 10-unit apartment house, consisting of five two-bedroom units and five one-bedroom units, located at 123 Elm Street, Los Angeles, CA.) offered as collateral, including the complete street address (Obtain endorsement to title policy including full description, where possible.) (CLTA 116 endorsement) · the complete legal description, and what document or information the borrower relied upon to provide that information · the property tax assessors parcel number Have the borrower(s) separately sign and date this description. 2) Add an addendum to your application, where borrower makes a specific, written representation as to who is on title, and in the case of an entity holding title, who the authorized signers are for that entity. 3) Watch item 3A, items created, etc., by the insured 4) Watch item 3B, items neither known to the insurer, recorded in the public records, but known to the insured 5) Obtain proper Endorsements. 6) Appropriate disbursement of loan proceeds. Parties to a loan transaction always have compelling reasons for disbursement of loan proceeds to someone other than the holder of title or the lienholders. It leaves you open for a multitude of title coverage (and other) problems. 7) Construction loans: (or any loan, for that matter) Be sure no work has commenced at time title policy is issued. Request true Seattle Endorsement for construction loans. Look for wording, insurer will not raise the fact that insured has undisbursed loan funds, as a defense againsta claim, as opposed to wording that says insurer will not raise the fact that the lender has undisbursed loan funds, provided that those funds are handed over to the title insurer. 8) Permanent loans (non-constructions loans): How do you know that no construction has commenced and no mater- ials have been delivered to the site, and that loan pro- ceeds arent, unbeknownst to you, going to construction? When closing a loan 1) Post closing review: On receipt of title policy, check title policy issued against lenders instructions to escrow/title. 2) If additional proceeds are to be disbursed, have title company disburse them Loan Servicing Issues 1) Attempt to avoid any deviation from the terms of the loan. (Any deviation, even slight, from the terms of the loan documents may be raised by the title insurer as grounds to deny coverage.) 2) For any modification of loan terms, obtain appropriate endorsement from title insurer. (Usually CLTA form 110.5) 3) Give written notice to insurer when modifying/altering any aspect of the loan agreement. Foreclosure / REO Issues 1) Deeds in lieu of foreclosure: Dont take a deed in lieu of foreclosure unless you obtain appropriate policy of title insurance. This would mean obtaining an owners policy of title insurance and a CLTA form 107.11 (non merger endorsement) Note the problem with deeds in lieu is that liens, judgements, taxes, and other recorded notices against the owner all attach to the property. 2) During foreclosure, operate with awareness that actions taken during the foreclosure are all post-policy and insurer may take the position that they are not covered by the policy. 3) A TSG (Trustees Sale Guarantee) is only an opinion of the insurer, not a policy of title insurance. Loan policy doesnt insure validity of your foreclosure. Where possible, obtain TSG from same company that insured original loan origination. 4) Obtain an owners policy o title insurance after fore- closure sale. This could eliminate or minimize all of the problems outlined in the last two points. (Remember that your loan policy only provides coverage to the extent that theres an unpaid loan balance. Whether youre going to sell or keep the property, youll need title insurance. Title Insurance Claims 1) Immediately tender to the title company any borrower complaint that questions the validity or enforceability of your deed of trust. 2) Notify title insurer in writing by Fed Ex or other traceable delivery service (that obtains a signature of receipt of delivery) if you have any reason to believe that you have a claim. 3) Obtain your own counsel, rather than relying on the counsel hired by title company to represent you. Where they represent you, they get a large amount of business from the title insurer and generally act in the best interest of the insurer. 4) Watch for acts on the part of the insurer, such as conducting protracted and unnecessary investigations, (which serve only to delay payment of the claim), or filing of unnecessary litigation, or inappropriately modifying your loan documentation, without obtaining the correct endorsements to cover new risk. 5) If obtaining any appraisals of the collateral, consider having your attorney order the appraisal, with him/her being named as client. This makes the appraisal privileged, and unavailable to other parties of the litigation.
Title,Insurance,Checklist,The,