Real estate round-up: September 29

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area: New condo project gets moving in Mount Vernon Triangle DC Urban Turf The new project would be following in the footsteps of CityVista and Yale Lofts, condo developments built over the last decade that represented the changing face of the area. The risk of asking too much for your house Baltimore Sun It can seem counter-intuitive, especially to a seller who is trying to account for the possibility of lower offers from buyers by making the asking price 10 percent higher than he would actually take. But in a market where sale prices are dropping and lots of listings are jostling for attention, pricing too high really hurts sellers.�

National real estate news stories: Vetting the lender The New York Times Ferreting out good information is not that easy. For one thing, different kinds of lenders are held to different rules, licenses and disclosure requirements. Can mortgage servicing be saved from itself? Wall Street Journal Loan servicers have been forced to revamp their operations after revelations surfaced a year ago that they used so-called robo-signers who signed foreclosure documents without personally verifying their contents, possibly breaking state laws. Their efforts to foreclose on members of the military have also raised alarms. And many homeowners were not offered loan modifications despite being eligible for them.

http://twlv.net/MDyNRE

Real estate round-up: September 28

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area: Jair Lynch buys a block on H Street Washington City Paper It's just one of a bunch of big moves on H Street lately, with a deal for Murry's in the works, H Street Connection ready to go, and the Autozone site and 1350 Maryland spoken for. DC home prices show slight annual increase: Case Schiller DC Urban Turf The index reported that home prices in the DC area increased on both a monthly (+2.4%) and annual (+0.3%) basis. Where does the dirt go? Washington City Paper As long as construction keeps rolling, the D.C. dirt economy will do well. Why do women pay more for mortgages? National Association of Realtors Authors of a recent study offer another explanation suggesting that women pay higher rates because they are more likely to choose lenders by recommendation while men tend to search for the lowest rate.

National real estate news stories: Who wants to buy a new home? Wall Street Journal New homes are designed for the way Americans live today, maximizing the usability of space and offering amenities that speak to modern needs, such as big closets. Plus, new homes are built to be more energy efficient. How are mortgage rates determined? HSH.com If you are watching mortgage rates so you can lock in a loan at the best time, you will notice that rates tick up and down regularly. Here are a few of the factors that regularly influence mortgage rates. America's top cities: Cheapest real estate in the world? Creditsesame.com Even though many economists predict that prices may continue to fall, thus expressing a view that U.S. real estate is still overpriced, real estate in America's top cities is cheap when compared with the rest of the world.�

http://twlv.net/eDdbXa

What does a title company do?

In the wake of foreclosure problems stemming from improper documentation and representation, a title insurance policy has never been more valuable than it is right now in this current real estate market. �

Clients often ask: What exactly does a title company do?� And the easiest answer that I give them is, "Take a look at our website and view the videos."�

At Federal Title, we conduct an extensive search of public records to verify the seller's right to transfer ownership.� The purpose of all this research is to discover claims or defects (a.k.a. "clouds") that limit the owner's right in transferring the property.

Lenders require title insurance when the purchaser obtains a mortgage to finance the purchase; this type of insurance is often called a lender's title insurance policy to cover the bank's interest in your property and to safeguard first position as a lien holder on your property. �

At the time of closing an owner's title insurance policy is also issued which protects you as the purchaser at the closing. An owner's policy is your assurance of protection against economic loss if a title defect is ever discovered and a claim filed against your property. �

The insurance premiums are only collected once, and your coverage will remain consistent for as long as you or your heirs retain an interest in your property or until you refinance the property at which point a new policy is issued.

Without the protection of an owner's policy, you may be in jeopardy of losing your investment which stems from a cloud on title that does not appear in the public records such as:

• Forged legal instruments (deeds, mortgages, wills, releases of mortgages)
• Improperly recorded legal documents�
• False impersonation of the true property owner
• Undisclosed heirs
• Issues involving improper marital status�
• Documents executed under false powers of attorney
• Deeds drafted by persons lacking legal capacity
• Undisclosed spouses
• Issues of rightful possession of land; which arise when a foreclosed property owner claims that they did not receive proper notice of the foreclosure.�

In the event that a claim is filed against you as owner of your property, the title insurance will cover your legal expenses, court costs and related fees. If the claim against the property is valid, then the title insurance company will reimburse you for your loss up to the amount of the policy.�

At Federal Title our attorneys are diligent in reviewing all documentation in an effort to assist buyers with the often times unexpected yet frequent legal matters that arise during the purchase and sale of real property.� At Federal Title and Escrow there is always an attorney title agent on each transaction that is prepared to explain, negotiate and if needed, represent your legal interests in every transaction.

http://twlv.net/0ODLsf

What is title insurance?

As we have stated before, it's a great time to buy real estate.� However, due to the banking industry's foreclosure problems due to improper documentation and representation, title Insurance has never been more valuable than it is right now this current real estate market. �

Clients often ask: What exactly does a title company do?� And the easiest answer that I give them is "take a look at our Federal Title and Escrow website and view the videos."�

At Federal Title and Escrow, we conduct an extensive search of the Florida public records to verify the seller's right to transfer ownership of the Florida property.� The purpose of all this research is to discover claims or defects (a.k.a. "clouds") that limit the owner's right in transferring the property.

Lenders require title insurance when the purchaser obtains a mortgage to finance the purchase; this type of insurance is often called a Lender's Title Insurance Policy to cover the bank's interest in your property and to safeguard first position as a lien holder on your property. �

At the time of closing an Owner's Title Insurance Policy is also issued which protects you as the purchaser at the closing. An Owner's Policy is your assurance of protection against economic loss if a title defect is ever discovered and a claim filed against your property. �

The insurance premiums are only collected once, and your coverage will remain consistent for as long as you or your heirs retain an interest in your property or until you refinance the property at which point a new policy is issued.

Without the protection of an Owner's Policy, you may be in jeopardy of losing your investment which stems from a cloud on title that does not appear in the public records such as:

• Forged legal instruments (deeds, mortgages, wills, releases of mortgages)
• Improperly recorded legal documents�
• False impersonation of the true property owner
• Undisclosed heirs
• Issues involving improper marital status�
• Documents executed under false powers of attorney
• Deeds drafted by persons lacking legal capacity
• Undisclosed spouses
• Issues of rightful possession of land; which arise when a foreclosed property owner claims that they did not receive proper notice of the foreclosure.�

In the event that a claim is filed against you as owner of your property, the title insurance will cover your legal expenses, court costs and related fees. If the claim against the property is valid, then the title insurance company will reimburse you for your loss up to the amount of the policy.�

At Federal Title and Escrow our attorneys are diligent in reviewing all documentation in an effort to assist buyers with the often times unexpected yet frequent legal matters that arise during the purchase and sale of real property.� At Federal Title and Escrow there is always an attorney title agent on each transaction that is prepared to explain, negotiate and if needed, represent your legal interests in every transaction.

http://twlv.net/OVAXr6

Real estate round-up: September 27

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area: Are LeDroit Park and Bloomingdale DC's hottest rehab market? DC Urban Turf Over the past year, homes sold "as-is" which, in real estate parlance, means "what you see is what you get" are scooped up after a short window on the market, renovated from top to bottom (and in some cases enlarged) and back up for sale several months later. Is the new rate worth the refinance? Washington Times If making the higher payments does not affect other financial aspects of your life, it would make sense. If the higher payment would result in taking away from important investments, such as a college fund or a retirement account, you may not want to be in the position of a required 15-year payoff. Michelle Rhee sells at a slight loss Curbed DC The house in 16th Street Heights that Michelle Rhee had listed back in April sold at the end of August for less than she paid for it in 2007. She had paid $855,000 then, and the final sales price was $841,000. The Yards virtual tour DC Metrocentric Developer Forest City gives a sneak peak of the development with this great fly through of how all the projects will looks once complete, including the Yards Park, Foundry Lofts, Lumber Shed, and more.

National real estate news stories: Why rent when you can nest? The New York Times The children of baby boomers have inherited an expectation of early independence that in today's economy is hard to sustain, and many of them are moving back home � if, of course, their parents live in a place that holds the potential for jobs. Rate drop spurs home refinancing Wall Street Journal The 30-year fixed-rate mortgage dipped below 4%, possibly triggering a refinancing boom for many of the same borrowers who already have taken advantage of rock-bottom interest rates.

http://twlv.net/oSYnvs

Real estate round-up: September 26

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area: What happened to the proposed 20-percent down payment rule? Washington Post The 20-percent proposal is still alive, but it's temporarily bogged down in agency reviews of the roughly 12,000 comments filed by interest groups and individuals. It almost certainly would not be ready for adoption until the first quarter of 2012. Historic celebrity homes attract tourists Voice of America Elvis Presley's Graceland and George Washington's Mount Vernon are two of the most popular, but there are also small houses devoted to preserving the memories of the celebrities who once lived there.� In spots, buyers gain edge again Washington Times Sales chances are calculated by dividing a month's sales figures by the inventory on the last day of the month, resulting in a percentage. A figure below 20 percent indicates a buyer's market. Higher figures mean we're in a balanced market or a seller's market.

National real estate news stories: 5 steps to creating a property website with Wordpress Inman News The ability to create a unique property website is not only a fantastic listing tool, but an effective way to compete in search with national syndication sites, including Trulia and Zillow. Quick refi may ding credit Bankrate.com You can comparison shop mortgage lenders in a relatively short (two weeks) time period, and that will only count as one inquiry on your credit score because it's clear you're shopping for a mortgage. Don't drive yourself crazy, consider the commute HSH.com When you buy a home, you buy neighbors, amenities, a lifestyle…and a commute. If you're about to commit to a home purchase, apply the brakes until you understand the implications of the home's location, location, location.

http://twlv.net/nhJymc

Real estate round-up: September 23

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area: Caveats for helping children buy a house Washington Times Some parents are opting to help their adult children get into the real estate market by giving them cash for a down payment, co-signing a home loan or arranging a rent-to-own scenario. Homeowners guide to confusing crime statistics Sun Gazette Numbers are only an indication of the past. It's still important to be proactive instead of reactive. A home security system can help protect your home and family during this period of uncertainty and into the future.

National real estate news stories: Buying a home safer investment than gold Inman News Among current homeowners, 80 percent said they plan to buy another home in the future and 57 percent said owning a home is among the best long-term investments they could make. Mortgage rates at their lowest rate in 60 years ABC News But as anyone who has ever purchased a home knows, there is much more to consider when thinking of the bottom line on a home purchase or refinance. But if you shop around and check old documents, you could shaving hundreds of dollars off closing expenses. Property prices near coast holding up better Miami Herald In Florida, the coastal market had 5,101 existing home sales in the first quarter, the highest total in five years. But a large number of distressed sales dragged average prices down 14 percent. Among non-distressed properties, prices went up 0.4 percent.

http://twlv.net/eMtDTE

Property tax reassessments in Maryland

One of the most frequent requests at closing is how often does the State of Maryland assess property values for tax purposes.� In Maryland, properties are reassessed every three years.� The State of Maryland provides a detailed explanation of the workings of the tax process on its website.

Also available are reassessment maps for every county in Maryland, which allow you to view when reassessments will take place. �

Below is the current map for Montgomery County, Maryland:

Area 1	Assessment Area 1 will be reassessed for January 1, 2013
Area 2	Assessment Area 2 will be reassessed for January 1, 2014
Area 3	Assessment Area 3 will be reassessed for January 1, 2012

http://twlv.net/OV3oKH

Real estate round-up: September 22

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area: Close quickly and get better mortgage rates HSH.com Once your loan is approved, you'll need to schedule your closing. It can often be more difficult to get a slot with a settlement agent at the end of the month, so be as flexible with your time as possible. Refinancing? Inquire about the 'Reissue Rate" ABC News Conventional wisdom is that it takes somewhere in the 5 to 7 year range to recoup the point that you would pay upfront on a loan, which is good for buyers to keep in mind when they are envisioning how long they will live in the property they are purchasing. Existing home sales rise Washington Post The NAR's chief economist Lawrence Yun said in a statement that rising rents, low mortgage rates and increased investor interest in gobbling up foreclosed properties may account for the uptick.

National real estate news stories: So what could go wrong? St. Augustine Record Home ownership should be hassle free, but when it comes to real estate, there's a lot at stake.� Title insurance covers the hidden risk that goes along with home ownership. � Higher mortgage rate fees proposed Bankrate.com A deficit-reduction package released Monday proposed that Fannie Mae and Freddie Mac increase fees by one-tenth of one percent for new, guaranteed mortgages. Rates could be set higher than that in areas where there is more risk of foreclosure. Title fees hard to swallow when refinancing a mortgage Los Angeles Times Home buyers and refinancers should shop around when it comes to title insurance. Rates charged by each company can vary by hundreds of dollars.

http://twlv.net/2Xr9gW

Real estate round-up: September 21

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area: Time to refinance ... again? Washington Post For starters, figure out what your monthly payment would be at the new rate. Compare it with what you're paying now and decide whether the savings � if any � will offset the cost of refinancing the loan. Points and low interest rates: A primer DC Urban Turf Conventional wisdom is that it takes somewhere in the 5 to 7 year range to recoup the point that you would pay upfront on a loan, which is good for buyers to keep in mind when they are envisioning how long they will live in the property they are purchasing. Charting the market: Prices lift in Northern Virginia Washington Times Median sales prices in Alexandria, Arlington and the District are back up to where they were in 2005 - the year sales started to decline.

National real estate news stories: The Academy Award for best real estate video goes to... Inman News A real estate agent in Los Angeles produced a "movie short" about a Hollywood Hills listing, marketing it as a sizzling Hollywood Hills bachelor's home and reeled in (pardon the pun) a buyer in less than 30 days.� Is it possible to build a house for $1,000? Wall Street Journal The prototype house boasts a modular layout with hollow brick walls with steel bars for reinforcement and wooden box beams. It is designed to withstand a magnitude 8.0 earthquake. The buddy system, or the buyer's broker The New York Times So why should a buyer bother using an agent? In a nutshell: to protect his or her interests in an expensive, often complex purchase.

http://twlv.net/fQiYbv

Independent agencies reject affiliated business arrangements: Washington Post

Over the weekend, the Washington Post Real Estate Section published an article by nationally syndicated columnist Ken Harney describing a sea change in the title insurance industry where transparency and honest rates are becoming more commonplace.

Toward the bottom of the story was a nice mention of Federal Title and our REAL Credit program as shining, local example of a title company rejecting the old practices of the title insurance industry in favor of a business model that benefits consumers.

Needless to say our office was pretty thrilled.

We believe consumers should know they have the right to choose their title company based on factors such as price, customer service, years in business, responsiveness and reliability.

We encourage homebuyers to shop for title services and offer them a breadth of information on our Web site to help them make the decision that is best for their situation. For years we've published our rates on our Web site and offered homebuyers and their agents a free online closing costs calculator to help them gauge how much money will be needed for settlement.

If Harney's article is any indication of the future of the title insurance industry, then it seems Federal Title's business model is finally becoming the norm instead of the brow-raising exception to the rule.

And the rest of the pack is following suit, as Harney writes: "A handful of agents in states where regulations permit discounts off closing-packages are now offering them. Plus growing numbers of title agencies are gearing up software platforms to provide services to consumers: online rate quotes, transaction updates �notifying customers about the status of their title order. Some are even e-mailing documents in advance of closings for customers' inspection, rather than hitting buyers with last-minute settlement surprises."

http://twlv.net/PHtvSA

Why condo owners need an HO-6 policy

Last week we posted a pretty lengthy article about insurance for condo owners entitled, "Condo insurance considerations."

The piece delved into the differences between a Master Policy, which is what your condo association carries to protect the building and its common elements, and the Unit-Owner Policy otherwise known as an HO-6 policy. An HO-6 policy picks up where a Master Policy leaves off, protecting the inside of the unit as well as the owner's personal belongings. Items like replacing cabinets, appliances and flooring are also covered by the Unit-Owner Policy.

Earlier this month, our friend Michele Lerner who has written about Federal Title on many occasions, published a piece with the Washington Times entitled, "Insurance a must-have for condo owners." Her piece does an excellent job of expanding on the types of scenarios a condo owner might encounter where the HO-6 policy would come into play. �

"Condo owners need to understand that the master policy for the condo association often covers the buildings to reconstruct them as they were built originally and will not cover improvements, such as updated kitchens or hardwood flooring, that have been added to a home."

http://twlv.net/TsM2TP

Real estate round-up: September 20

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area: New refinancing options for lower title fees Washington Post In the Washington area, Federal Title & Escrow provides as much as to $1,100 off total closing costs for home buyers who use its online "Real Credit" software platform for their transactions. Insurance a must-have for condo owners Washington Times Homeowners need to make an estimate themselves of how much it would cost to replace all their clothing and personal items in case of a total loss because of a fire or some other disaster.

National real estate news stories: Top 10 home improvements that pay you back AOL Real Estate It's a buyer's market, and between tighter purse strings and plenty of properties to choose from, shoppers want homes that are move-in ready and free of the need for home improvement projects that will add to their own bottom lines. There's more to refinancing than low rates Bankrate.com Closing costs are critical to the decision, and you typically don't know the exact closing costs until the day before closing. You have to decide if it's worth chasing these lower rates. The newest threat to home prices CNN Money On Oct. 1, higher limits are slated to drop back down again in expensive markets nationwide � ranging anywhere from $483,000 in counties like Monterey, Calif., to $625,500 in cities like New York and Washington. Saving on mortgage taxes The New York Times It's important to inquire about a mortgage assignment at the very beginning of the refinancing process, mortgage experts say, because locating and transferring all the necessary paperwork could be time-consuming.

http://twlv.net/7sMlna

Real estate round-up: Septmeber 19

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area: Washington economy grows 3.6 percent Washington Business Journal Washington also ranks as the third-fastest growing metropolitan economy, behind Boston's 4.8 percent growth in 2010 and New York City's 4.7 percent growth. Local resources offer to help BRAC families Washington Examiner Thousands of BRAC families are moving to the Washington area, with communities near Fort Belvoir, Fort Meade and the Mark Center area of Alexandria expecting the biggest impact. Mortgage Q&A: Deciphering the Adjustable Rate Mortgage Washington Times Because rates are so low right now, ARMs are, indeed, adjusting downward. But the APR on an ARM is meaningless because we know rates won't remain unchanged.

National real estate news stories: Decoding the wide variations in house appraisals The New York Times Owners, the experts said, should provide comparable listings, walk appraisers through the house, and point out improvements and unique features. Mortgage rates drop to another record low Bankrate.com The benchmark 30-year fixed-rate mortgage fell 3 basis points this week to 4.32 percent, the lowest level the fixed rate has reached since Bankrate started the weekly mortgage survey nearly 26 years ago. Buying and selling homes in hard times: Stuck in Miami Wall Street Journal Home prices in Miami have fallen by more than half, according to the S&P/Case-Shiller 20-city composite index, to levels not seen since 2003.

http://twlv.net/ihPPWB

Real estate round-up: Septmeber 16

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area: Agents embrace social media Washington Times Approximately 84 percent of agents use social media in some form, according to November statistics from the National Association of Realtors. Young homeowners zero in on region's urban areas Washington Examiner The shift is a product of changing population trends�� including the rise of the city during the last decade�� and the housing crisis that left many potential homeowners gun-shy. Is green good for home resale value? Washington Post "The case needs to be made [to lenders] that, hey, these [highly efficient] houses will cost less to operate, so they should be worth more."

National real estate news stories: Straightening out a wrong property line Chicago Tribune The title insurance policy is the document issued by the closing agent or title company that guarantees your ownership to the land When real estate agents make referrals The New York Times Called the Real Estate Settlement Procedures Act, or RESPA, the law also requires disclosures of affiliated or shared ownership businesses and a good-faith estimate on closing costs. More home sellers paying full real estate commissions Sun Sentinel Agents also have to help arrange financing and title insurance to keep the sales moving toward the closing table.

http://twlv.net/lt4l4p

6 real estate headlines: 15-September

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

Homeowners: Beware of post-Irene scams HSH.com: No matter if your home was affected by Hurricane Irene or any other natural disaster, a call to your insurance company should be the first call you make.	To protect real estate assets be prepared Washington Post: Couples who own real estate before marriage may take advantage of a particular form of title known as "tenancy by the entirety."
Do you have to escrow for taxes? Washington Post: If you are buying a home in the District and putting down 20 percent or more, you have the right to pay your own real estate taxes and insurance.	Six steps that could boost refinancing Wall Street Journal: Demand for new loans or refinancing remains muted, underscoring reasons why policy makers at the White House and Federal Reserve are thinking about new ways to help more homeowners refinance.
Jumbo loans make a come-back in metro market Washington Examiner: Jumbo loans in the $1 million to $3 million range, with interest rates between 4.25 percent and 4.75 percent, are available to buyers with credit scores of at least 740.	What $1.2M buys you in DC DC Urban Turf: The second most-expensive home on the DC market is listed at $12 million. Here's a look of some other million dollar homes.

http://twlv.net/l1Kgvt

REAL™ Credit OK'd by D.C. government

We've caught a lot of flack lately over our REAL Credit™, with some of our competitors saying the progressive program is a violation of D.C. Code.

After consulting the District of Columbia's Department of Insurance, Securities and Bank (DISB) for guidance, DISB released a bulletin clarifying their position. According to DISB, a title company may provide a settlement discount (e.g., REAL Credit™) to a homebuyer so long as the credit is tied to an "action that improves the efficiency of the settlement transaction, such as applying electronically." �

Real Credit™ is allowed

Federal Title's REAL Credit™ is perfectly legal since it is awarded to a homebuyer only when a homebuyer or the homebuyer's agent orders settlement services through the online order system.

DISB approved Federal Title's REAL Credit™ on the basis that it (1) improves the efficiency of the settlement transaction; (2) does not rebate any of the title insurance premium; and (3) is awarded to a homebuyer exclusive of whether the homebuyer elects to purchase owner's title insurance coverage.

Federal Title's proprietary online order & workflow system allows for a more efficient, transparent and error-free closing. In regards to ordering settlement services, scheduling and notification, the online system:

1. Automatically confirms an order notifying all parties to the transaction together with a guaranteed quote for costs of title charges and transfer/recordation taxes.
   
2. Automatically disseminates e-mail correspondence, with embedded online forms, to all parties (e.g., title abstractor, land surveyor, real estate agents, lenders, homebuyers, and sellers)
   
3. Automatically delivers a preliminary HUD-1 to the lender to assist in the preparation of an accurate Good Faith Estimate

What's not allowed

Essentially, a title company may not offer a discount or credit unless it provides a "reasonable basis" for doing so.� In other words, a title company may not rebate, or provide a credit against, any cost of the title insurance premium or provide a credit to a homebuyer which is contingent on the purchase of owner's title insurance. �

According to our contact at the DISB, who is tasked with aggressively monitoring title insurance activities and enforcing D.C. Law, the following are examples of discounts or practices that would be prohibited:

• A title company may not offer to match or beat any competitor's fees
• A title company may not offer to purchase a home warranty on behalf of a homebuyer
• A title company may not offer a settlement discount that requires a coupon
• A title company may not offer a settlement� discount "at the closing table" as a result of negotiations by any party during settlement
• A title company may not offer a settlement discount only if a settlement client does not qualify for a reissue rate

DISB is charged with the enforcement of a recently enacted statute (D.C. Official Code � 31-5041.07), which prohibits a title insurer from inducing a homebuyer to purchase title insurance. http://twlv.net/ukXhQw

Standard v. Enhanced coverage: Land survey matters

As a homebuyer in the District of Columbia, Maryland and Virginia, you have a choice between two types of owner's title insurance coverage�� Standard (Limited) Coverage or Enhanced Coverage. When deciding on which coverage, you may consider the possibility of being forced to remove a structure because it extends onto adjoining land or easement.

The Standard owner's title insurance policy contains 4 basic insuring provisions including (1) title being vested other than as stated, (2) any defect in or lien or encumbrance on the title, (3) unmarketability of the title, (4) lack of a right of access to and from the land.�

While the coverage under the Standard policy is broad, the policy form excludes coverage for certain matters that are traditionally outside the scope of a title search of the public records.� One of those excluded matters concerns existing encroachments of structures or encroachments created subsequent to the date of the policy.� In other words, the Standard policy includes an exception for survey matters.

Unlike the Standard coverage, the Enhanced owner's title insurance coverage insures against forced removal of a structure (except for boundary walls and fences) due to an encroachment. Moreover, the Enhanced coverage covers the insured in the event that, after the date of policy, someone else builds a structure that encroaches on to the insured's land.

Specifically, the Enhanced policy covers the insured in the event the insured is forced to remove an existing structure because it extends on to adjoining land or on to any easement, or it violates a subdivision restriction, or it violates an existing zoning law.�

There are many other insuring provisions to consider when selecting the type of owner's title insurance coverage and I invite all of our prospective homebuyers to take a look at our Comparison of Coverages.

http://twlv.net/300JbQ

Understand mortgage fraud to avoid it

Mortgage fraud investigations have skyrocketed since the financial crisis began in 2008, and a recent report released by the FBI's white collar crimes division indicates the number of investigations has steadily increased in the years since.

If that's not bad enough, apparently now the mafia is getting involved in the scheming, drawn by the chance to rake in "high profits through illicit activities that poses a (relatively) low risk for discovery.

As a homebuyer, you should familiarize yourself with the concept of mortgage fraud in its many forms.

As defined in the FBI's report, mortgage fraud is "a material misstatement, misrepresentation, or omission relied on by an underwriter or lender to fund, purchase, or insure a loan. This type of fraud is usually defined as loan origination fraud. Mortgage fraud also includes schemes targeting consumers, such as foreclosure rescue, short sale, and loan modification."

Buying a house is likely the biggest financial decision you will ever make. Select real estate professionals who understand your needs and look out for your best interests. The Internet is a great place to get started on your search, but you should supplement that information with input from your friends, family & neighbors who've recently bought or refinanced a home.

To get a sense of the types of questions you should ask at the beginning of your homebuying adventure, check out these pamphlets created by the Federal Trade Commission that cover deceptive mortgage ads, buying a home and tips for homeowners.

http://twlv.net/QBZoCP

Title insuance Q&A

What will standard title insurance cost?
Standard Owner's Title Insurance premium is based on your purchase price.� Enter your purchase price and answer a few other questions here to obtain an instant quote for the cost of both standard and enhanced owner's title insurance.

What would enhanced insurance cost?
Enhanced Owner's Title Insurance premium based on your purchase price. Enter your purchase price and answer a few other questions here to obtain an instant quote for the cost of both standard and enhanced owner's title insurance.

How many claims do you see made against title insurance policies each year, or what percentage would you say?�
Matters arising post-settlement covered by the terms of an owner's title insurance policy occur in approximately 5% of all transactions that we close. Poor record-keeping by local government represents a good portion of these matters which results in such matters as unpaid taxes (tax liens) (i.e., prior years' taxes not properly reported by the governmental authority). Other common matters include non-terminated lines of credit and previously unreleased deeds of trust (mortgages) of prior owners, mis-indexed judgments/liens against prior owners, unpaid condo/HOA dues, seller fraud (e.g., imposter spouses, acquiring/drawing on/of lines of credit immediately prior to closing), and forgeries/unauthorized deed transfers in the chain of title.

What percentage of your clients buy enhanced vs. standard?
It's approximately 50/50 for enhanced v. standard.�

What percentage of your clients waive/decline owner's title insurance coverage?
Less than 1% of homebuyers decline owner's title insurance coverage.

I've read the descriptions of the two types of insurance on your website and I'm still trying to determine if it's worth it for me to buy owner's title insurance.� Am I insuring against the possibility of losing my home or against the legal fees I might have to pay to get the title cleared?� Do you have more details/ fine print on the two policies than what is on the website?
You are insuring against the potential of both (title failure and legal fees to defend title).�
http://twlv.net/04JRIW