Title insurance? How to buy?

Asked by Abigail Bussard, Oak Park, IL Fri Jan 27, 2012

I'm closing on a foreclosure in March and noticed on my closing cost worksheet that the lender has title insurance, for around $300........but the "owner's title insurance" is left blank and "optional". How do I coordinate getting this included. and what are the costs for a home around $200,000??? Would my car/life/homeowner's insurer offer this....and should I put them in touch with my lender? Thanks for any information!

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John Walin, Agent, Libertyville, IL
Thu Feb 16, 2012
Talk to an agent you know or are working with on this deal and a title company they work with. Lender has requirements to protect their interests.
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Suzanne Hami…, Agent, Orland Park, IL
Fri Jan 27, 2012
Not the same insurance. You want the title company to do this. Does it say in your contract that the buyer provides title though? There are two kinds of title insurance - the owner's title - which the seller usually provides and your lender needs and that your attorney should review to ensure there are no liens on the property. Then, the lender will require buyer's title insurance, which covers you and the lender if any liens should pop up prior to your closing date. Better to use the same title company as the owner's title - cheaper. But you can use your own. The rates vary a lot. $300 is pretty low. Often attorneys have deals that you can get too. But John is right - you want professionals to help you with your circumstances and your deal. Every deal is unique.
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John Herman, Agent, Barrington, IL
Fri Jan 27, 2012
Every deal is different, which is why you need a trusted agent working for you to help you answer these kinds of questions. Generally speaking, title insurance of $300 on a property priced at $200,000 is not bad. The requirements for the title insurance come from the bank. The bank that is lending you money to buy the property wants to ensure that the title is clean (which means there are no liens on it). The title company doing the research would provide insurance of the quality of their findings. The seller does not require title insurance, as they are not borrowing money from the bank. If you decide to puchase a home for cash, you can elect to not buy title insurance, however I would recommend you get it.
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Sergio Herna…, , Naples, FL
Fri Jan 27, 2012
Contact a title insurance company, or an attorney and have them guide you.
Web Reference:  http://www.golftobeach.com
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Peter Schif…, , Northbrook, IL
Fri Jan 27, 2012
Apparently you just got a preliminary worksheet from title company. Owner's policy will definitely be there, it's not optional, but the cost of it is usually covered by the seller unless there is a special arrangement in place due to foreclosure transaction. You have to ask your realtor and your attorney to check the contract and find out who is covering owner's policy.
Nothing to do with car/life/home insurance provider...
Good luck with your purchase!
Peter Schifrin
Express RE Group, Inc.
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