Why Do I Need Title Insurance

Why Do I Need Title Insurance? This is a question many people are probably asking themselves as they go through their mortgage or refinance closing. Since it is not something talked about much most consumers probably do not understand what title insurance is or why they need it. Realty Times offers a good description of title insurance and why it is needed here. In short title insurance is required to protect the lender or buyer from any title defects. Anyone who is buying a home or refinancing is required to purchase title insurance and the rates are governed by the state.
Lately there has been quite a bit of news about title agencies being sued for illegal practices and charging inflated fees. Many will ask how this is possible if the cost is regulated by the state? And the answer is the title insurance premium is regulated by the state but some title companies have a bad habit of tacking on what are called junk fees to increase their bottom line and give kick backs to brokers in return for more business. Junk fees can include duplication of fees with different names and other types of extra charges that are generally hidden.
If you have bought a home or refinanced did you actually review what fees you were charged by your title company? Most probably did not. A detailed breakdown of fees should be reviewed when talking to a title company. Now most people probably believe that they have to use the title company their broker or attorney recommends but this is not true. You can choose your own title agency and if your broker or attorney tries to tell you otherwise you may want to look into why he is telling you this. It has nothing to do with the law and it is more likely that he is receiving some sort of compensation for his referral (which is highly illegal). Don't get forced into using a title company because you were told you had to. Do some research and find the title company that you feel most comfortable with and is offering you the best price. Consumers review every aspect of their new home and mortgage but then don't look into the title company at all. Don't make this mistake or it could cost you thousands.

What to Look For in A Title Insurance Provider

"How do I find the best title insurance provider for me?" Unlike every other aspect of the real estate and mortgage process the research conducted on title agencies is almost non existant. As has been discussed here already most consumers do not know enough about title insurance, in fact many do not even know it exists until they actually sit down to sign the paper at closing. At that point is most likely too late to do anything about who the title insurance provider is. This is unfortunate because by doing a little research and staying involved in the process can save consumers a lot of money and headaches. So what should the average consumer look for to get the best title insurance provider for them?
The first thing customers must realize is that they do have a choice in who they use for title insurance. Most simply let the broker they are working with choose the title agency for them. Doing this could cost the consumer extra hundreds of even thousands at closing. To find the best fit consumers should look for a provider who is willing to provide a detailed list of their fees and walk them through the process. Avoid title companies who are secretive or claim that they can't disclose the details of their charges. Make sure that the title quote is not going to change. Ask the title company if the quote includes all fees and charges and make sure they are willing to state that their will be no surprises when you are ready to sign the closing documents. If they are unwilling to educate you on the process and promise the fees will not change move on to another company.
In the past title companies have relied on the fact that most consumers did not know about the title insurance process and used this to take advantage of unwitting customers. Customers have the power to avoid this by doing a little research and finding the best deal. The information is out there and educated consumers will seek it out. The new breed of title insurance companies can help educate consumers and work with them to get the best price on their title insurance.

Reputation of Title Insurance Companies

The title insurance industry has a fairly bad reputation among consumers. The reality of the situation is that most title companies have nobody to blame but themselves. Consumers do not really know what title insurance is and many title companies have taken advantage of this lack of knowledge by adding junk fees and overcharging customers for title and settlement services. This has resulted in many lawsuits against title agencies for kickback schemes and other nefarious practices designed to overcharge consumers. As more of these lawsuits are filed the illegal practices of some title agencies are coming to the forefront. There have been quite a few recent news stories in the mainstream press about these lawsuits that highlight the illegal actions that seem to be rampant in the title insurance industry. This is leading to consumers becoming more educated about title insurance and what closing costs are legit and what kind of junk fees should be avoided.
myClosingSPACE has stepped to the forefront by making title insurance and the entire closing process more transparent. By educating customers’ myClosingSPACE can show exactly what they should be charged and what fees are to be avoided. When a customer gets a My Closing SPACE quote they will see all of the charges in a detailed list and know that the quote will consist of ALL the fees that they will pay when they close. There are no hidden fees and therefore the entire closing process costs much less than traditional title agencies. At My Closing Space we will continue to educate the customer on the closing process and we applaud those entities out there that are exposing less scrupulous title companies’ illegal practices. Visit http://www.myclosingspace.com to learn more about our service and title insurance in general.

Educating Potential Customers

Let's hear about some of the biggest hurdles you are seeing when educating consumers about title insurance and closing services. At myClosingSPACE we want the process to be totally transparent when it comes to our fees but unfortunately that is not the case with most title insurance and closing services companies. Because customers expect to be charged extra fees at closing they do not trust the myClosingSPACE quotes. Fortunately with myClosingSPACE what you see is what you get. We do not add charges at closing so when we give you a quote that is exactly what you will be charged at closing. No hidden fees or junk fees will be added. That is one of the things that sets us apart from other title companies.

I would like to hear a little more about this and other issues that arise when working with potential customers. Let's also discuss ways to better educate customers so they can make informed decisions when it comes to choosing a title insurance and closing service provider.

Welcome

Welcome to the myClosingSPACE Blog. Here we can talk about any issues we are facing in the title insurance and closing services industry as well as discussing potential future developments. Please post anything you think would be beneficial for fellow myClosingSPACE employees and information to help educate the general public on title insurance and how the closing process works. Feel free to comment on any posts made so we can have spirited discussions.

There is a lot of knowledge in the title industry and mortgage industry present here so please share that knowledge for those of us in MCS and the general public.