Has anyone successfully done this to reduce their title policy rate in CO? It seems we use the CLTA (California LTA) forms here instead of the ALTA forms, and the generic policies don't specifically call out endorsements that they cover; instead, they seem to be written to expect the custom set of endorsements required by the lender to be attached to the "generic policy". Am I right in thinking this?
The lenders I've called so far offer tow options: 1)A "basic refi rate" and then charge you for each endorsement you need on top of that, or 2) a bundled rate, which includes the base policy and any endorsements your lender requires. Unfortunately, it seems both options are very close in price, so I can't save much.
Has anyone else had success lowering their policy rates in a state that uses the CLTA forms?
Great read! I am about to close on a PA property in a month and looked at this issue that I was wondering about on my last purchase. I am closing with the same lender as before who is using the same title company. On my previous GFE for the old house worth $369,000 owner's insurance was $2,200 but ultimately it was "just" $585. Given that I'm going with the same lender and title company as before, will my rate be as reduced as it was before? On my new purchase I was quoted $1,400 for owner's title insurance which would bring it down to about $400 given my reasoning. I guess I can ask my title processor and see what she says. BTW, the title agent was paid a whopping EIGHTY-FIVE percent (85%!) commission ($2,060) of the whole amount on my previous purchase. Crazy!
EDIT: Got a word back from my title processor: "Standard owners is $215, enhanced owners is $362.50." Sweet! It's a great thing that I don't have to worry about it and just let it run the course as I would have before. Except by reading into the title insurance shenanigans I am a bit wiser as to what it exactly it is and what it does for me and how to lower the cost. Thanks OP!
psychtobe said: What do I need if I am buying a property for cash? Title is quoting me almost $900 for a buyer's policy and the property costs less than $200k. That seems crazy.
What state are you in? In mine, it's about $3.65 per thousand so 200k works out to $730. There are other charges associated with title insurance also such as a title search and the cost of the title company/attorney but I guess it depends how you break down the purchase cost. Other people are talking lender's coverage which is about $2.50 and re-issue from the same title company can be between $1.25-$1.50 per thousand. So almost $900 isn't really that crazy at all.
Asked my title company for a "short form" title insurance policy quote (for the lender) and got this response: "There is no quote to give. Short form is the same as a long form policy when it comes to rates."
Suggestions on how to respond?
FYI, I am in the state of Virginia, and doing a refi with the same title company that did the last refi (on the same property). Title policy quote is currently: $1082.50 ($850 to Agent / $232.50 to Underwriter). Some commission, huh?
Has anyone every had the need for or know of someone who has actually made a title claim? When I bought my last house (new house in new housing addition) I researched owner title insurance and found the coverage to be full of holes with the likely hood of it being beneficial to be almost zero. Title insurance seems to be one of those add ons that people pay for, don't really know what it covers, almost never need, and if they do find out it doesn't cover much of anything. In my case a new house in a new neighborhood if there was a title issue it would likely affect every one of the 300 lots. I told the title company to take it off and you'd thought I'd killed their puppy. It was much like what is described above, asking questions of the costs and coverage and the title company had a hard time giving me answers and when they did I always doubted if they really knew what they were talking about.
I know this is a old thread, but reading it helped me. My attorney gave me a high quote for title insurance. They claimed that this was not negotiable and I could not shop around. I figured out what was actually needed by the lender and got a quote from Entitle Direct. After I told my attorney that I would not go with them, they immediately lowered their price to match my Entitle Direct quote. This was less than an hour's effort to save me quite a bit.
beatme said: I know this is a old thread, but reading it helped me. My attorney gave me a high quote for title insurance. They claimed that this was not negotiable and I could not shop around. † †† Sounds like great cause for an ethics violation to your state bar.† The right to shop around for title insurance is guaranteed by federal law.†
Does anyone know if PenFed's requirements for a refi changed from what was posted in the OP? I requested the the title insurance requirements from my processor, and all they said was "PenFed offers our preferred vendor, there arenít any requirements or anything, and itís the same company for title and settlement."
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