Abstract of Title and Foreclosure
To obtain an abstract of title, it is best you hire a title company.
Most people do not understand exactly what an abstract of title is. This page will provide you with useful information about abstracts of title. You are not alone, this is where most Home buyers just trust the professional they choose to represent them (Realtor, Lender, etc) I recommend getting a referral from family or friend.
When a Consumer is purchasing a home or refinancing a mortgage, they will contract with a title company to insure they have valid title and actually own the land. To make this determination, title professionals search public records to find all the recorded documents that could affect a person’s ownership of the property. These documents could include deeds, mortgages, deeds of trust, easements, covenants, etc. A title professional then compiles these records into an internal company document called an abstract of title (or chain of title), which acts as a short history of the land and all the people who have an interest in that land. Abstracts of title are used by buyers, sellers, lenders, Fannie Mae, Freddie Mac and title insurance companies to determine who owns the land.
Please consult with your title company or attorney and be sure you understand information found in abstract of title before the making the purchase of a foreclosure.
How title insurance rates are set varies from state to state. Some rates are set by the companies themselves and some are set by the State Department of Insurance. For those states that set the rates (Florida, New Mexico, and Texas), each title company is required to charge the same for title insurance for each different type of policy and for each different type of rate. Some other states, including but not limited to, NY, PA, NJ, OH, and DE, which have rating bureaus authorized under state law, may have uniform rates as well.
Here are some terms that will be helpful for you to know when talking to a title company. Ask your title company which of these you may qualify for:
Basic Rate: The rate charged to a consumer who does not qualify for a reduced rate such as, but not limited to, the reissue rate or simultaneous issue rate. .
Reissue Rate: The reduced rate for an Owner’s Policy issued on a property which was previously insured within some period of years. In some states, the term is also used for a refinance rate.
Simultaneous Issue Rate: The reduced rate for a Loan or Owner’s Policy issued on the same property or loan at the same time as another policy. The term usually refers to a Loan Policy issued at the same time as an Owner’s Policy when a property is purchased.
Refinance Rate: The reduced rate for a Loan Policy issued on the new loan in a refinance transaction, in which the original loan was previously insured within some period of years.
Risk Rate: A rate that does not include the cost of researching the title or the cost of conducting the closing.
All-Inclusive Rate: A rate that includes at least some part of the cost of researching the title or the cost of conducting the closing.
Hope the info helps answer the general questions. For specific answers on the properties in question I will need you to email me the addresses. I can also email you some great resources with information that will help you. Please let me know if I can be of further assistance to you.
Sara Forkel
