topic Re: When can I feel safe in Mortgage Loans

When can I feel safe

Sbrooks1 — Sat, 18 Mar 2017 23:36:40 GMT

At what point can you assume the title company has checked the PR , I did my own PR search months ago and did find one dismissed wih prejudice from 2007. Not sure who he OC was but the CA was Arrow, I never received any notices or communication, if so, I would have just paid it. I more worry becaus my ex hubby stole my identity and afraid something is out there I'm not aware of. That would be detrimental at this point. Since nothing but the dismissed case showed up on my own search last year I am hoping I am worrying for not!

Re: When can I feel safe

StartingOver10 — Sun, 19 Mar 2017 12:12:03 GMT

Why don't you contact the title company and ask for the title commitment?

They would run the search before issuing the commitment and if there were a judgment it would show in the exclusions part of the title commitment (Schedule B).

Re: When can I feel safe

Sbrooks1 — Sun, 19 Mar 2017 13:22:09 GMT

I wonder at what point they do the commitment? I will call then tomorrow

Re: When can I feel safe

StartingOver10 — Sun, 19 Mar 2017 14:16:47 GMT

They should have it by now. Most title companies get right on it (the good one's anyway). There is a paragraph in the contract that specifies the date by which the title co has to provide the commitment.

Re: When can I feel safe

Sbrooks1 — Sun, 19 Mar 2017 14:34:27 GMT

In my purchase contract?

Re: When can I feel safe

Sbrooks1 — Sun, 19 Mar 2017 14:59:00 GMT

Surely then if they have it and there was bad news, Jim would know

Re: When can I feel safe

Leeloo — Sun, 19 Mar 2017 20:04:42 GMT

Get an Owners Title Insurance Policy to cover anything that may have been missed in the title search.

Re: When can I feel safe

StartingOver10 — Mon, 20 Mar 2017 00:35:24 GMT

@Leeloo wrote:
Get an Owners Title Insurance Policy to cover anything that may have been missed in the title search.

This is true ^^^. But SBrooks was worried about an old judgment popping up from her distant past. Title co's run not only title searches for the property, but they look for judgments against buyers before the purchase. This is done to protect the bank as the judgment can attach to the property and come in front of the banks loan. If her title commitment came back with a judgment showing - the lender would normally pick it up prior to final approval. There is also a requirement for the title commitment to be provided to the buyer in advance of the closing by a certain date.

Here in my county title insurance is required, but I know that isn't the same everywhere so the link is appreciated.

Re: When can I feel safe

StartingOver10 — Mon, 20 Mar 2017 00:37:02 GMT

@Sbrooks1 wrote:
In my purchase contract?

Yes, there is usually an entire paragraph or more devoted to title company or closing attorney requirements including the due date of the title commitment.

Re: When can I feel safe

Sbrooks1 — Mon, 20 Mar 2017 00:43:24 GMT

I don't see that anywhere, only mention regarding title is act if sale

Re: When can I feel safe

StartingOver10 — Mon, 20 Mar 2017 00:44:51 GMT

@Sbrooks1 wrote:
I don't see that anywhere, only mention regarding title is act if sale

I don't know what that means. You are buying real estate and it doesn't discuss escrow and title and closing in the contract? That doesn't make sense.

Re: When can I feel safe

Sbrooks1 — Mon, 20 Mar 2017 02:01:22 GMT

I read the whole thing twice, it talks about act of sale

Re: When can I feel safe

StartingOver10 — Mon, 20 Mar 2017 09:34:19 GMT

@Sbrooks1 wrote:
I read the whole thing twice, it talks about act of sale

Every state has their own "standard" forms that the Realtors use. Sometimes there is more than one standard form. In addition to that, builders have totally different contracts (each builder and each community). Naturally, attorney's can and do write different contracts if they decide to not use the state forms. So the specifics are different.

In general you will have (brief notations here, not complete by any means):

Indentifying the parties to the contract and the real estate being sold by address & legal description + any non-realty items included such as appliances
Purchase price & closing date
Financing - details and contingency if the contract is subject to financing
Inspections - contingency if the contract is subject to an inspection period
Disclosures - standard by geographic area - some are federal like lead based paint or energy efficiency
Title Insurance - due dates and who is to pay
Seller duties, Buyer duties and escrow agent duties
Seller default definitions and buyer default definitions
Standards and dispute resolutions
Plus any addenda that may be specific to your purchase (HOA for example)

The title information can be in its own paragraph or under the standards. Your contract may not have such a paragraph. I don't know your contract at all. But the contract defines the duties of all the parties - including closing agents and escrow agents and that is where the due dates for the title insurance commitment will be located. In any event, lenders want to make sure that the property on which they are making a loan is free and clear of any defects so they require a title commitment before you get your final clear to close. Since you are very close to closing now, the closing attorney or title company (whoever is closing your purchase) should have that info by now. Just call them. They can email it to you.