Why Title Insurance is Important in a Down Economy

written by Insure.com from World Class Title Agency of Columbus

Unlike the Wild West — when declaring property and owning a shotgun was all you needed to become a landowner — the civilized world invented a better way of handling land disputes: title insurance.
In tough economic times, title insurance becomes a crucial tool in protecting yourself from others financial woes. Lenders and homebuyers buy title insurance to ensure that a property can be legally transferred from the seller to the buyer. It protects you (or your mortgage lender) against problems relating to the property's title prior to the date of the policy. For example:
* If someone forged a signature in a past transfer of the title from one owner to another.
* If there are unpaid real estate taxes on the property.
* If there are liens against the property, including foreclosure, that are unresolved.
"Problems with a title happen more often than you can imagine," says Ilyce Glink, a financial expert and publisher of real estate advice site ThinkGlink.com.
"In order to avoid a number of problems with the initial sale, tile insurance is must-have for the buyer."
"Title problems often turn up in foreclosures, and with foreclosures come a higher number of claims," says Craig Page, executive vice president and counsel for the California Land Title Association.
"When people get into financial trouble, they often look for deep pockets to get them out of a situation, so they file a claim against the title.
"Dangers that affect titles in a bad economy
• Debts: A lien on your property securing the repayment of a debt (such as foreclosure).
• Divorce: Pension and property are the primary assets that are distributed in a divorce. If you are a couple that has negative equity in a home, you'll likely have to split the debt. Your spouse may contest the title and deny being the true owner to avoid paying his portion of the debt.
• Fraud and forged signatures on a deed: Fraudulent mortgages can run rampant in hard times.
• Falsified records: A corrupt real estate agent could declare that a house is marketable when it's not.
• Seller disclosure: Misinformation related to the history of the home and its physical characteristics, conditions and other factors affecting the value of the property.
• "Wild deed": An improperly recorded deed that affects ownership rights.
• Adverse possession: Somebody who possesses the land of another for an extended period of time may be able to claim legal title to that land. They have to prove that they have been in an "actual, open, notorious, exclusive, and continuous occupancy of property" for the period required by state law.
According to a March 2008 report by Fitch Ratings, title insurers suffered historic net losses in 2007 due in part to an unexpected increase in claims related to swelling mortgage foreclosures.Aside from the folks who are trying to find a way to ditch their mortgages, there are a number of problems that can occur with an unclear title.
"In declining markets, there is a strong argument that purchasing title insurance is more important than ever," says Page.
"During these uncertain times, there is an unfortunate increase in unpaid child support and judgment liens, and tax and special district liens from delinquent assessments. In addition, there are now many local governmental agencies that are recording liens associated with maintenance of abandoned foreclosure properties that would be a costly surprise for an unwary buyer.
"Everything in the real estate transaction process depends on having a clear title on the property. If your title is tainted, there will be a problem selling the home in the future.
"No one wants to inherit someone else's debt on a property," says Page.
"The worse thing that could happen is that an owner finds out that their home is considered "unmarketable" after the contract is signed.
"An unmarketable property is poison when buying or selling a home. If a property doesn't belong to you, has an unpaid mortgage, or a claim filed against it, the property is considered unmarketable by industry standards.
"If you have $100,000 in cash down on a $500,000 property and it turns out that the seller didn't own it and shouldn't have "sold' it to you, having title insurance means you won't lose money on the transaction," says Glink.
"You will lose the property, but you will get the money you invested back.
"Another good reason to have title insurance is in the event of a loss.Title insurance will reimburse you in the event a monetary loss results from a lawsuit against the title.
For example, an heir of a deceased property owner could decide he has an interest in the property. He could contest the title in court to determine who is the true owner, resulting in considerable legal fees. Title insurance will cover your legal bills.

written by Insure.com from World Class Title Agency of Columbus

My new Bank Short Sale negotiation tactic

I just finished reading "Short Sales and Loan Modifications" by Kenneth Lawson who is an attorney. He has a VERY AGGRESSIVE negotiating tactic that is not for the faint of heart. We are going to implement it immediately.

I recommend the book to anyone who is going to attempt bank short sales!! :-)

LambrightTeam.com Monthly Newsletter

Hello,

We wanted you to have a copy of our once a month newsletter.

If you can do us a favor and keep your ears open at the "water cooler" at work for people who are having trouble selling their home......we have a solution for them through the short sale process. Send us their name and number or email.

Here is the newsletter:

The latest version of our HomeMarketWatch Insider newsletter
is now available on our website at:
http://LambrightTeam.com/redir.asp?page=gold_newsletter.asp&t=sicNews

Each month, we publish a series of articles of interest to
homeowners -- money-saving tips, household safety checklists,
home improvement advice, real estate insider secrets, etc.
Whether you are currently in the market for a new home, or not,
we hope that this information is of value to you. Please feel
free to pass these articles on to your family and friends.

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This month's features...

FEATURE REPORT:
- Before Disaster Strikes

ALSO THIS MONTH:
- 27 Tips You Should Know To Get Your Home Sold Fast and For Top Dollar
- The Top Ten Ways to Prepare for Retirement

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Have you missed the bottom for house prices in Central Ohio????

This image shows the most recent stats for CENTRAL OHIO. Don't listen to the national media!! We are in a recovery period folks. Buy now while it is still a buyers market because it is leaving........

The single most asked question we get is, "When are prices going to bottom out??"

The answer to that is, "We won't ever know we have hit the bottom until we are on the way back up--which means the bottom has already passed us."

It is just like the stock market--you cannot time the bottom of the market......because the bottom is defined as the period at which prices start to go up. You cannot realize the bottom until it is OVER, GONE, KAPUT, FIN........

HEADLINE MAY 27TH, 2009:

Home sales, prices rise again in April, inventory falls 16 percent

"(May 27, 2009) April showed increasing signs of stability in the central Ohio housing market, as home sales and prices increased, while homes on the market fell by a double-digit percentage, the Columbus Board of REALTORS® said today. "

If you (or someone you care about) are planning on ever buying a home--do it NOW. It is the perfect storm.

Warren Buffet says that there is a housing opportunity ONCE PER GENERATION that happens that is unlike any other. Folks this is it!!!

1. Free $8000 in government money from the federal government

2. State and county incentives to purchase a home

3. Prices that make Central Ohio on the most affordable list for the United States

4. The LOWEST fixed interest rates in the history of our country

Good luck to all of you.

Stacey and I only have room for 3 more buyers for our VIP Buyer Program. Please let us know if you would like us to speak with someone you care about to see if they qualify for our program.

We will try to squeeze them in before this perfect storm ends and things swing back to the sellers being in control. All the indicators show that it will not be very long from now.......

LambrightTeam.com Monthly Newsletter Link from Stacey, Jim, Jill, Amy and Dan

Hello,

We hope you had a good weekend...

Just wanted to send you the link (below) to our newsletter...

Talk to you soon!! :-)


The latest version of our HomeMarketWatch Insider newsletter
is now available on our website at:
http://LambrightTeam.com/redir.asp?page=gold_newsletter.asp&t=sicNews

Each month, we publish a series of articles of interest to
homeowners -- money-saving tips, household safety checklists,
home improvement advice, real estate insider secrets, etc.
Whether you are currently in the market for a new home, or not,
we hope that this information is of value to you. Please feel
free to pass these articles on to your family and friends.

-----------------------------------------------------------------
If another person has forwarded this issue to you, and
you would like to subscribe yourself, go to the following link:
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This month's features...

FEATURE REPORT:
- Fixing Up Your Home: Protect Your Housing Investment

ALSO THIS MONTH:
- Don't Pay Another Cent in Rent To Your Landlord
- 10 Questions To Ask When Choosing A Financial Planner

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*** THERE'S MORE ON THE WEB... LambrightTeam.com ***

Find out how to Sell Your Home for LESS than what is owed:
http://upside-down-homes.com

Get your HOME SOLD GUARANTEED in this tough market:
http://homes-sold-fast.com

Get a FREE list of foreclosures, HUD homes, & shortsales emailed to you:
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Hire My Entire Team For LESS Than the Price of One Agent:
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FREE Quick Over-the-Net Evaluation:
http://LambrightTeam.com/redir.asp?page=homeeval.asp&t=sicNews

Find Out What the Home Down the Street Sold For:
http://LambrightTeam.com/redir.asp?page=gold_findout.asp&t=sicNews

How To Beat Out Other Buyers to Hot New Listings:
http://LambrightTeam.com/redir.asp?page=vip_buyer.asp&t=sicNews

Ask One of Our Experts Your Real Estate Question:
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Find Out How Much You Can Afford In Your Next Home:
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BRAND NEW Incentives in OHIO to Buy a Home--FREE $$$

Hello,

Please pass this along to any people you may know who might be considering buying a home.

The Government just rolled out another incentive to purchase. It is for a limited time, but it is incredible!!

Here are the highlights.....I can explain further if you email me.

---Down Payment assistance grant--

If paying for a down payment and closing costs have kept you from getting into a home of your own, OHFA's Down Payment Assistance Grant may be able to help. Eligible borrowers participating in the First-Time Homebuyer Program, Target Area Loan Program, and Ohio Heroes Program can use the grant to greatly reduce the out-of-pocket expenses associated with buying a home.

• If you qualify for one of OHFA's home loan programs, you can choose to take advantage of the Down Payment Assistance Grant.
• OHFA will issue a grant in an amount up to 2.5% of your home's purchase price.
  You can use the grant to pay for the down payment, closing costs, or other prepaid expenses incurred prior to closing. Keep in mind that while the grant will greatly reduce your expenses, you may still be required to pay for some costs out of pocket.

Here is the BRAND NEW additional help being provided by the State of Ohio as well:

--homebuyer tax credit advantage program --

Let OHFA help you with down payment and closing costs through the Homebuyer Tax Credit Advantage Program featuring no interest and no loan payments until August 2010. Eligible borrowers participating in the First-Time Homebuyer Program or Ohio Heroes Program can use the loan to greatly reduce the out-of-pocket expenses associated with buying a home.
If you qualify for one of OHFA's home loan programs, you can choose to take advantage of the Homebuyer Tax Credit Advantage Program.

• OHFA will issue a loan, as a second mortgage, up to 3% of the purchase price of the home.
  You can use the loan to pay for the down payment, closing costs, or other prepaid expenses incurred prior to closing. Keep in mind that while the loan will greatly reduce your expenses, you may still be required to pay for some costs if they are not covered by the loan.
• If you take advantage of the loan, your second mortgage interest rate will be fixed at 1% higher than OHFA's current mortgage rates and you will begin paying August 1, 2010.
• You may be eligible for a new federal First-Time Homebuyer Tax Credit of up to $8,000.
• You may claim the credit either on your 2008 federal tax return, due April 15, 2009, or on your 2009 tax return filed in 2010. More information about the First-Time Homebuyer Tax Credit is available from the IRS web site.
• Incentives are available if you choose to prepay the Homebuyer Tax Credit Advantage loan by June 30, 2010. Otherwise, your mortgage payment will increase slightly due to the added second mortgage loan payment.

These two programs essentially bring back the $0 down loan program for many buyers.

Contact me to see if you or someone you know qualifies. It is quite simple. Don't miss out!!

Deadline is in 6 months......the clock is ticking to claim one of the biggest incentives to buy a home ever put on by the US Government and The State of Ohio Government.

LambrightTeam.com newsletter from Stacey, Jim, Dan, and Jill

The latest version of our HomeMarketWatch Insider newsletter
is now available on our website at:
http://LambrightTeam.com/redir.asp?page=gold_newsletter.asp&t=sicNews

Each month, we publish a series of articles of interest to
homeowners -- money-saving tips, household safety checklists,
home improvement advice, real estate insider secrets, etc.
Whether you are currently in the market for a new home, or not,
we hope that this information is of value to you. Please feel
free to pass these articles on to your family and friends.

-----------------------------------------------------------------
If another person has forwarded this issue to you, and
you would like to subscribe yourself, go to the following link:
http://stayincontact.com/sub.asp?Param=aWGbYbJY8l8ClCj9a
-----------------------------------------------------------------

This month's features...

FEATURE REPORT:
- Can Your Kitchen Pass the Food Safety Test?

ALSO THIS MONTH:
- Why It Is So Important That Your Home Is Correctly Priced and Marketed Properly
- Protecting Your Home from Fire and Carbon Monoxide

-----------------------------------------------------------------
*** THERE'S MORE ON THE WEB... LambrightTeam.com ***

Owe more than your home is worth? Sell it and get the debt forgiven!!!
http://upside-down-homes.com

FREE email list of foreclosure, HUD, repossessions and short sales:
http://purchase-hud-homes.com

Hire My Entire Team For LESS Than the Price of One Agent:
http://LambrightTeam.com/redir.asp?page=team.asp&t=sicNews

FREE Quick Over-the-Net Evaluation of your homes value:
http://LambrightTeam.com/redir.asp?page=homeeval.asp&t=sicNews

Find Out What the Home Down the Street Sold For:
http://LambrightTeam.com/redir.asp?page=gold_findout.asp&t=sicNews

How To Beat Out Other Buyers to Hot New Listings:
http://LambrightTeam.com/redir.asp?page=vip_buyer.asp&t=sicNews

Ask One of Our Experts Your Real Estate Question:
http://LambrightTeam.com/redir.asp?page=gold_askexpert.asp&t=sicNews

Find Out How Much You Can Afford In Your Next Home:
http://LambrightTeam.com/redir.asp?page=silver_mortgagecalc.asp&t=sicNews