I'm about to close on a short sale property in Chicago I'm told that I will pay for the closing fee for the title company. What does it mean?

Asked by Jck0786, Chicago, IL Thu Aug 22, 2013

Is this lenders title insurance ? Or owners title insurance

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15
Matt Laricy, Agent, Chicago, IL
Thu Aug 22, 2013
BEST ANSWER
Every buyer and seller has title in their closing costs. It differs with each property. Talk with your attorney about this.
0 votes
William Chu, Mortgage Broker Or Lender, Elmhurst, IL
Wed Oct 2, 2013
There are always closing fees in a real estate transaction. The questions are (1) Who pays for it, (2) How much ..., and (3) Has your Lender disclosed this accurately to you.

From some of the other answers, Buyer + Seller do typically split the title insurance fee (lenders title and owners (Seller) title insurance. This said, you (Buyer) will typically pay additonal fees to the Title Company/Agent, because they are the third party that helps to close the transaction between Buyer + Seller.

Yes, you could negotiate to ask the Seller to pay ALL your closing fees. However with a short sale transaciton, this can be tough because the Seller already owes MORE on the property and is asking, maybe begging, their Mortgage Servicer to take a loss on the mortgage so Seller can sell to you.

Call me if you need further details OR if you want a quick workup of the total of closing fees.
1 vote
Bev West, Agent, Greeley, CO
Wed Oct 2, 2013
The title company charges a closing fee to for providing closing and settlement services. These fees vary according to what type of services they are doing ie. Real Estate, Loan Closing, Refinance, Foreclosures etc. Talk to your title company or your Realtor and they should identify what amount you are looking to pay.
0 votes
Daniel Mirea, Agent, Chicago, IL
Sun Sep 29, 2013
Talk to the Attorney ! He/ She should be able to guide you in your specific transaction
0 votes
Michele Wils…, Agent, Lake Forest, IL
Fri Sep 20, 2013
Why are you not asking this question of your attorney??
0 votes
Mary Laurent, Mortgage Broker Or Lender, Chicago, IL
Tue Aug 27, 2013
Negotiating points! The lawyer and realtor will work with you on this.
0 votes
Mary Laurent, Mortgage Broker Or Lender, Chicago, IL
Tue Aug 27, 2013
Negotiating points! The lawyer and realtor will work with you on this.
0 votes
JIM Michaels, Agent, Chicago, IL
Fri Aug 23, 2013
What does your attorney say it means?
0 votes
Cassandra Bl…, , Crystal Lake, IL
Fri Aug 23, 2013
There are two parts of title insurance, one is the lenders policy which you pay to insure the lender of any errors and omissions on the policy to guarantee their lien is secure. The owners policy, the second part, is disclosed that you pay, however the seller reimburses you at closing. They pay this portion to guarantee that the above is true for you, the owner, not the lender.
If you need more answers, and your team of realtor, attorney, or lender can't help you, you may need a new team. Best of luck!

http://Www.myprospectmortgage.com/cbajak
0 votes
Philip Sencer, Agent, Chicago, IL
Fri Aug 23, 2013
You need to speak with your attorney because the fees you pay is based on what the contract says and what the lien holder wants you to pay. They frequently do whatever they want and if you do not like it then your only choice is to walk away. Short sales are a real pain in the A...
0 votes
Erik Sachs, Agent, Chicago, IL
Thu Aug 22, 2013
Protocol for deals in Chicago is that if the buyer is financing their purchase they pay the closing fee. In cash deals generally this fee is split between the buyer and seller.

Erik Sachs
RpV Realty and Development
Cell 773/368-5515
Email esachs@rpvinc.com
0 votes
Jacqueline S…, Agent, Chicago, IL
Thu Aug 22, 2013
Well, it means several things, you are paying to close at the title company and use their office and closer, and you are paying them for your title insurance policy. The title policy means that they stand by the fact that they check the background and outstanding issues with the property and they insure that clean title is being transferred to you from the legal seller of the property. There are no "clouds over the title" that would impede your ownership, other than the ones YOU put on it, which would be the mortgage on the property at closing, if you have one.

Say the property was sold for taxes and never redeemed. The title company missed that and 3 months after you close the tax buyer takes the property. The title insurance policy would kick in and cover you. It is their job to catch these things.
0 votes
Jose Hernand…, Agent, Chicago, IL
Thu Aug 22, 2013
When buying a short sale or foreclosure most banks will try to pay the minimum and will pass as much as possible to the buyer.

Good luck!
0 votes
Ian Halpin, Agent, Chicago, IL
Thu Aug 22, 2013
Ask your attorney for specifics
0 votes
Bill J Delig…, Agent, Naperville, IL
Thu Aug 22, 2013
The Title Company besides providing Title Insurance will charge $X to use their facilities on closing day.
0 votes
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