JD Title & Escrow Services https://jdtitles.com A Cape Coral Title Company Mon, 07 Sep 2020 11:27:23 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.1 Do I Need Title Insurance on a Bank Foreclosure? https://jdtitles.com/do-i-need-title-insurance-on-a-bank-foreclosure/ Mon, 07 Sep 2020 11:27:22 +0000 https://jdtitles.com/?p=2796 A title insurance carries a great deal of importance in regard to bank foreclosures.

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When banks foreclose on homes, they repossess that home and sell it at an auction to new bidders. But, before you buy them, you need to consider buying title insurance in Florida.

What Does Title Insurance Do?

Title insurance is a form of indemnity policy to protect mortgage lenders and home owners against loss, which is caused by legal claims or title damages on a property.

Title insurance safeguards the title – your claim to a home. A title company tries to figure out if the property can be claimed by anyone. They go through public records to identify any claim on the property. A title can be seen as “dirty’ if there are unresolved building code violations.

Bank Foreclosures

When you are in the midst of buying a bank-owned property, and the title company is dissatisfied, it may refrain from selling a policy. It’s important to invest in title insurance because it saves you from major financial losses in the long run.

For example, consider a scenario where you bought a home. After living peacefully for two years, a stranger knocks on the door and happens to be the unknown child of your previous owner! He can claim the ownership of the home and argue that he never agreed to the house’s sale. Without title insurance, things can turn ugly and you may even end up on the losing side!

Contact us so we can make sure that you can buy a new property and move permanently without any issue. To get the cost of title insurance in Florida, send us a message.

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Is It a Good Idea to Buy a Short Sale House? https://jdtitles.com/is-it-a-good-idea-to-buy-a-short-sale-house/ Tue, 14 Jul 2020 13:15:06 +0000 https://jdtitles.com/?p=2787 It can be a good decision if you want to buy a property at a lower price but short sale comes with its disadvantages. There are certain risks involved in investing in a short sale house.

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Thinking of buying a short sale property?

It can be a good decision if you want to buy a property at a lower price but short sale comes with its disadvantages. There are certain risks involved in investing in a short sale house.

Here are some reasons why you should think twice before investing in a short sale house.

Buy Short Sale House

Disadvantages of Short Sale

It Is a Long Process

If you are looking to buy a property quickly, then a short sale is not the best option for you. Approving a short sale is a long and tiring process and may take up to a year to finalize. A number of factors determine the time for approval, which can become really frustrating for the buyer.

Mortgage Lender’s Approval Is Necessary

If you are buying any typical property, you only need to get the approval of the person who owns the property. This is not the case in short sale. In these cases, you also need the approval of the mortgage lender. This is because you are trying to get them to accept less than what they are owed for the specific property. Thus, it takes a lot of time to convince the mortgage lenders that make buying a short sale a long and tiring process.

Opportunity Cost Is High

Another shortcoming of buying a short sale is that it makes you miss out on other good opportunities. This is because the process of short sale approval is so long that you might miss out on other potentially better purchases and properties.

These were some common disadvantages of buying a short sale. Make sure you understand the risks of investing in a short sale before you go on and make any final decision. Your time and resources will be stuck in a short sale for a long time. If you don’t want to miss out on other better opportunities, then it is better to make smart and informed decisions.

Got More Questions? Contact Us Today…

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Can You Sell a House W/O Title Insurance? https://jdtitles.com/can-you-sell-a-house-w-o-title-insurance/ Wed, 20 May 2020 16:30:17 +0000 https://jdtitles.com/?p=2780 The short answer is that might be possible in some cases. It is possible to do so if it is a cash sale or no money is involved. However, these cases are quite rare.

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Can you sell a house without title insurance? The short answer is that might be possible in some cases. It is possible to do so if it is a cash sale or no money is involved. However, these cases are quite rare. Even if it is possible to do something, it does not mean that it is the best choice. In fact, it may be far from it. Selling a house without title insurance carries critical risks that can affect the validity of the deal. It is not wise to embrace such a critical risk just to avoid a small one-time fee (title insurance). It is much better to pay a small fee (title insurance) than to risk losing a huge amount of money by way of a defective title to the property.

sell house without title insurance

Possible Title Issues

Many homeowners do not realize it, but there are many issues that adversely affect the title to your property. For instance, a contractor can impose a lien on the property for outstanding bills. Or you might purchase the house together with your spouse and if you get divorced, it will not be immediately clear how much share your ex has in the property.

Mandatory Cases

There may also be situations where you cannot sell your house without title insurance. If the buyer is financing the purchase of the property through a mortgage, then the lender will demand title insurance. This is a necessary safeguard for lenders because with title insurance in place, no one can legally challenge their right to foreclose the property. Title insurance is, thus, crucial for mortgage firms and lenders because they can foreclose the property without challenge when such a situation arises and recover their funds.

Title insurance is necessary since the service provider carries out an extensive search to find out about any lien or claim against your property that you may not be fully aware of. Some liens include property and income taxes.

Protection

Title insurance is also necessary for the new owner since it protects them and their lenders against any property claims that can jeopardize their legal ownership of the property. It is possible that some property issues might arise before the property ownership is passed on to the new owner. Title insurance can protect the new owner against such adverse circumstances.

Title insurance also gives you assurance that all paperwork necessary for closing the deal has been completed. With title insurance, you can rest assured that all of your paperwork is in place and that signatures from all parties to the deal have been taken.

Peace of Mind

Besides providing such important benefits, the amazing thing about title insurance is its affordability. Unlike other insurance benefits, you do not have to pay high premium amounts every month or so. With just a nominal one-time payment that is a small fraction of the deal, you can rest assured that the property deal is valid when you have title insurance in place. You will not have to face the pain of litigation that is often the case with defective property titles.

Looking for title insurance from a reliable and experienced firm?

CALL JD Title & Escrow @ 239.984.5028

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Title Insurance When Refinancing? https://jdtitles.com/title-insurance-when-refinancing/ Thu, 23 Apr 2020 14:19:44 +0000 https://jdtitles.com/?p=2774 Title insurance is designed to protect your property investment against threats that may transpire at different stages. It can protect you during refinancing, property resale and construction. Once property ownership is transferred, the new owner should purchase title insurance to protect their ownership rights.

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Why Do I Need Title Insurance When Refinancing a Mortgage?

Are you considering refinancing your home loan? Whether you want to take advantage of favorable terms and conditions or a lower interest rate, you will have to pay certain expenses when taking out a new loan. These expenses include title insurance and service fees.

But what is title insurance and why do you need it to refinance a mortgage? Here’s everything you need to know about title insurance:

Refinancing with title insurance

Title Insurance

Title insurance is required for several reasons. Buying a home is a complex task that involves several legalities.You need to meet all of the legal requirements to ensure a defect-free title. In short, title insurance allows you to mitigate risks to your homeownership title.

Since purchasing a home is complex, there are several things that can go wrong and lead to a defective title. This is the last thing that you want as a homeowner.

The good news is that you can avert potentially costly risks to your title by just making a one-time payment for your title insurance policy. You will have to make just one small payment. Title insurance is much cheaper as compared to auto and health insurance.

This is a small price to pay to protect your ownership rights from perplexing legal matters that even seasoned home buyers may not be fully aware of. Keep in mind that unlike other insurance policies, title insurance does not protect you against future risks. It protects you against past events that can jeopardize your home title. As surprising as it may seem, there are all kinds of possibilities where events from the past may threaten the lawful ownership of your new home.

Since purchasing a new home is one of the biggest investments that you will ever make in life, you want to be fully certain that the title to your home is free from all types of unforeseen threats that can possibly challenge your lawful ownership of the property. You must take all possible steps to ensure that your title is defect-free since it is your proof of the legal ownership of your property.  

Why Is Title Insurance Needed During Refinance?

Title insurance is designed to protect your property investment against threats that may transpire at different stages. It can protect you during refinancing, property resale and construction. Once property ownership is transferred, the new owner should purchase title insurance to protect their ownership rights.

There is a lot that can go wrong after you purchase your new property. New legal judgments or new liens might adversely affect your property title. Similarly, other title defects can possibly come to the fore.

A mortgage lender can protect your investment with the help of title insurance. Title insurance will ensure that the risks to the refinance loan are diminished. In case you need further information on this key aspect of home purchases, feel free to take our consultation.Contact us today.  

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Why Is Short Sale Bad? https://jdtitles.com/why-is-short-sale-bad/ Mon, 20 Jan 2020 15:32:11 +0000 https://jdtitles.com/?p=2766 Buying a short sale can look like a great opportunity if you are looking to buy a property at a reduced price. However, a short sale often comes with a number of disadvantages. The process of buying a short sale is much more complicated as compared to buying just any property.

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Are you thinking about buying a short sale?

Buying a short sale can look like a great opportunity if you are looking to buy a property at a reduced price. However, a short sale often comes with a number of disadvantages. The process of buying a short sale is much more complicated as compared to buying just any property. This is because there are certain risks involved in investing in a short sale.

a toy house with keys

Here are some disadvantages of a short sale.

Disadvantages of Short Sale

1.       It Is a Long Process

Do you want to buy property quickly?

If yes, then a short sale is not the best option for you. Approving of a short sale is a long and tiring process and may take up to a year to finalize. A number of factors determine the time it takes to buy and approve a short sale. The number and experience of the lenders is a major determining factor in how quickly you can buy a short sale.

2.       Mortgage Lender’s Approval Is Necessary

If you are buying any typical property, you only need to get the approval of the person who owns the property. This is not the case in short sales. While you’ll have to get approval from the current owner of the property, they are not the only ones you need approval from. The mortgage lender must approve the sale as you are trying to get them to accept less than what they are owed for the specific property. Thus, it takes a lot of time in all this convincing which makes buying a short sale a long and tiring process.

3.       Opportunity Cost Is High

Another disadvantage of buying a short sale is that it makes you miss out on plenty of other good opportunities. You are so invested in the long process of short sale approval that you miss out on other potentially better purchases and properties. Your resources and time are all tied up in the short sale negotiation process and you lose many better investment opportunities during the process.

4.       You Buy the Property As-Is

Most of the people who are trying to negotiate a short sale are in some financial troubles. Thus, you cannot expect them to keep their property well-maintained. The property may also have some deeper plumbing, electrical or—even worse—structural issues. Hence, when you buy a short sale property, you are essentially buying the property as-is. The maintenance and other such issues will not be catered to by the bank as they are already losing money on the property. It is very important that you get a proper home inspection before you make any final decisions about the property.

These were some common disadvantages of buying a short sale. Make sure you understand the risks of investing in a short sale before you go on and make any final decision. Your time and resources will be stuck in a short sale for a long time. If you don’t want to miss out on other better opportunities, then it is better to make smart and informed decisions.

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Why Is Title Insurance Important? https://jdtitles.com/why-is-title-insurance-important/ Sat, 07 Dec 2019 12:41:47 +0000 https://jdtitles.com/?p=2761 Along with property values, allied industries like title insurance are also on the rise. Title insurance is now worth $15 billion and is forecasted to grow in the future.The numbers clearly show that homeowners are investing in title insurance.

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According to Zillow, the median value of US homes has risen by 4.7% during the past 12 months. A further 3.4% increase is projected for the next year.                                                                                                                                                             

Why is Title Insurance Important

Along with property values, allied industries like title insurance are also on the rise. Title insurance is now worth $15 billion and is forecasted to grow in the future.The numbers clearly show that homeowners are investing in title insurance.

But what is title insurance? Is title insurance necessary? Most importantly, what does it mean for you? Here is what you need to know!

What Is Title Insurance?

Conventional insurance policies safeguard policyholders against adverse future events. For example, auto insurance protects the insured against the financial impact of auto accidents and thefts. Title insurance, on the other hand, protects policyholders from past events. This attribute makes it very different.

Title Insurance Protection

There are two broad categories of title insurance. Both lenders and homeowners can purchase title insurance if they so desire.

Homeowners can benefit from title insurance because it covers their property investment. Lenders benefit from title insurance because it covers their security amount in the property. Title insurance makes an intensive search to uncover any potential liabilities that the property title may incur. In other words, if you face lawsuits after becoming the titleholder of the property, title insurance will move in to defend you against any challenges to the legality and validity of your title.

Is Title Insurance Necessary?

The short answer is definitely yes.

Title insurance can pinpoint possible legal challenges and lawsuits that you would probably not have been able to uncover on your own.  

Imagine that you lose the entire property due to a lawsuit. What a staggering loss that would be! Hence, you should not hesitate to pay this nominal amount. It will protect you against the threat of a tremendous loss that can bring down a lifetime of hard work to zilch. The title insurance premium stands at just a tiny fraction of the immense cost of your property. This is a tiny price to pay to safeguard against a terrible loss.  

One criticism leveled against title insurance is that it only pays out a small amount of the premium. There is a good reason for this. The reality is that title insurance makes an extremely extensive, exhaustive and comprehensive search before insuring a given property. Therefore, it is highly unlikely that you will ever run into any legal issues associated with the property in question.  

If anything, the low payouts show the safety, efficiency, and success that homeowners can enjoy with title insurance. And no, profit margins for title insurance are not as high as many homeowners imagine. The extensive research ties up a lot of resources and money.

Cost of Title Insurance

Title insurance is very cost-effective since you are making a rather nominal one-time payment, as opposed to conventional insurance where you have to make monthly payments for the entire duration of the policy. For homeowners, it can cost about $830 on average, while for lenders title insurance can be as little as $540. The amount will vary according to the value of the property in question.

Contact us today for title insurance par excellence!

JD Title & Escrow Services LLC

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What Is Title Insurance and Who Pays For It? https://jdtitles.com/what-is-title-insurance-and-who-pays-for-it/ Thu, 14 Nov 2019 14:25:22 +0000 https://jdtitles.com/?p=2751 As the name suggests, title insurance is the insurance on the title of your property. It is a form of indemnity insurance that keeps the owner of a property safe from the financial loss they may have to bear in case there are defects in the title of the property. Title insurance is usually purchased when you go and get a mortgage.

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You just purchased a house. Ever wonder what would happen if the previous owner comes and claims to still own the house?

This might seem unlikely to you, but it happens a lot. And, that’s where title insurance comes into play.

What Is Title Insurance?

As the name suggests, title insurance is the insurance on the title of your property. It is a form of indemnity insurance that keeps the owner of a property safe from the financial loss they may have to bear in case there are defects in the title of the property. Title insurance is usually purchased when you go and get a mortgage. This policy covers either a mortgage lender or a homeowner, but you will usually have to pay for both types when it comes to the closing costs.

It is important to get title insurance on your property as the recorder of deeds in the U.S. doesn’t guarantee accuracy when it comes to their records. This means that someone with an older document can come forward and claim the property to be theirs, especially if there is any evidence of past forgery or fraud. With title insurance, your title rights for a property are perfected. It also offers compensation in case you lose the property.

Title insurance is of two types:

  • Lender’s policy
  • Owner’s policy

Lender’s Policy

The lender’s policy protects the interests of a lender in a property if the title of the property is not covered. This helps the lenders stay safe in case someone comes later and claims to be the real owner of the property. Lender’s policy is to be taken care of by the buyer. Thus, when it comes to the lender’s policy, the buyer typically pays for it.

Owner’s Policy

The second type of title insurance is the owner’s policy. It is a type of insurance that protects a homeowner against any defects in the title that were not found during the initial search. You just have to pay this cost once, during the closing of the deed. The owner’s policy not only covers the owners but also their heirs for as long as they have an interest in the particular property.

Many different title issues may arise when you purchase a property. Some of them include:

  • Undisclosed heirs
  • Forgery
  • Record examining errors
  • Errors and omissions in the final deed

The owner’s policy covers property owners against all the issues. The owner’s policy can be paid either by the seller or the buyer of the property. Take a look at who traditionally pays for this policy in your location and decide accordingly.

Should I Get Title Insurance?

If you are purchasing a property, then it is best to get title insurance. This will save you from title-related issues later on, which can even cost you the property you just purchased. With title insurance, you can rest assured that your property is safe and you will be compensated for the damages, even if some problems arise later on.

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What Does A Title Company Do? https://jdtitles.com/what-does-a-title-company-do/ Wed, 05 Jun 2019 17:53:55 +0000 https://jdtitles.com/?p=2725 Most people when buying or selling a home will first think about retaining a realtor, and selecting a mortgage loan financial organization, and then a professional home inspector.

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Most people when buying or selling a home will first think about retaining a realtor, and selecting a mortgage loan financial organization, and then a professional home inspector. Because the mortgage process is quite involved, another important entity is involved – title companies. In general these companies work to ensure that there are no hidden or unknown problems with the transfer of the property title or transaction process. They are in essence an “overseer” to ensure that the components of a real estate transaction are legal and hassle-free. Through research, insurance and careful coordination, a title company is there to guide the process of the title to property being transferred legally and correctly from the seller to the purchaser.

To further understand what a title company brings to the table, here’s a breakdown of services that are usually offered:

Abstract’s

A title company will initially perform what is referred to as an “abstract” to research the history of a property being sold or purchased, and locate information as necessary. Secondly, a title search is performed to find out if you are buying the property from a person who is legally able to sell the property. This also reveals any past or current liens or judgments against the property from a legal standpoint. Often title companies will review the chain of the property title to look for any unseen past claims to the title that may be floating around.

Legal Claim

Once a property is cleared, title insurance is then issued to ensure that the purchaser holds a proper and legal claim to the title of the property. Title insurance is usually required by lending institutions including banks, credit unions and mortgage companies before a piece of property can be officially purchased.

The title company then creates an escrow account so that neither the seller or buyer, at any point during the mortgage process, can claim the money was mismanaged or used for other purposes other than closing the sale of a home. Title companies act as third parties in general, for both the benefit of the seller and buyer, and the realtors involved in the transaction.

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Spring Means More Options https://jdtitles.com/spring-means-more-options/ Tue, 23 Apr 2019 13:02:07 +0000 https://jdtitles.com/?p=2720 When looking to purchase a home, spring is a great time to start looking, as it is usually when more and more homes are being put on the market for sale.

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When Looking For a Home

When looking to purchase a home, spring is a great time to start looking, as it is usually when more and more homes are being put on the market for sale. In fact, May is considered the strongest month of the year for people to sell a home. The housing market in general tends to fluctuate between a buyer’s market and a seller’s market, but in the spring there’s no shortage of home options to consider when looking.

But why is spring the springboard (pun intended) for this increase in homes for sale? One main reason is warmer, more comfortable weather makes buyers much more active. The housing market is usually in a stronger position at this time. There are plenty of buyers looking to purchase, which real estate agents are aware of, passing along that information to their clients to list their homes as quickly as possible. The spring weather also allows buyers (and sellers) to get a head start on their new home journeys, as sometimes the sales and closing process can take a while to complete. And with longer days on the horizon as a result of daylight savings time, buyers have more time to view homes while it’s still light out.

In warmer weather states, there are similar buying and selling patterns that exist, believe it or not. With many people needing to focus on work, holidays and family obligations towards the end of summer, the new school year in the fall, older children going off to college, etc., more homes tend to come off the market, sometimes temporarily. On the flip side, buyers tend to slow down the process of checking out new listings as well.

It should also be noted that not every home listed for sale in the spring will sell, which can offer a great opportunity for a home buyer to purchase a home at a discount – but this can be a risky gamble if the home you fell in love with in the spring is sold while you were waiting for a potential fall/winter price reduction. So be vigilant in your home buying strategy, and definitely utilize your real estate agent for advice. Happy home hunting!

Buying a Home? JD Title & Escrow can help with your Title Insurance & Transfer

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VA Loans & What I Should Know https://jdtitles.com/va-loans-what-i-should-know/ Sat, 16 Mar 2019 13:13:39 +0000 https://jdtitles.com/?p=2713 As there are many mortgage options available to anyone looking to purchase a new home, it can be confusing when it comes to the “specialty” mortgage products out there, including a VA Loan. VA Loans are $0 down payment mortgage options, a federal program available to United States veterans and active duty military personnel, as…

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As there are many mortgage options available to anyone looking to purchase a new home, it can be confusing when it comes to the “specialty” mortgage products out there, including a VA Loan. VA Loans are $0 down payment mortgage options, a federal program available to United States veterans and active duty military personnel, as well as select military spouses. This type of loan is typically issued by private lenders (not by the government) including mortgage companies, community banks and credit unions, and are guaranteed by the U.S. Department of Veterans Affairs (VA).

Some potential homeowners that fit the criteria for a VA Loan may not qualify for a conventional mortgage, but because of the $0 down payment flexibility and lesser credit standards, it makes it possible to purchase their home. There are loan limitations in place, however, a qualifying potential buyer can place a down payment if a more expensive home is the goal.

VA Loans VS Conventional Loans

There are many differences between a VA Loan and conventional loan. Lenders do not require you to purchase private mortgage insurance, there’s a greater degree of flexibility which equates to a more competitive interest rate. Because the loan is backed by the United States government, lenders assume less risk which equates to easier qualification standards overall. One major requirement that you need to keep in mind – the purchase of any home through this program must be done for your own personal occupancy. To find out more about VA Loans and if you can qualify, contact a local lender today.

Contact JD Title For VA Loan Title Transfers

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