Local Title Company Saves the Transaction

Published February 14, 2010

A great resource Buyers and Sellers have with Galveston real estate transactions is the opportunity to work with local title companies. They have closers that have been in the business a long time. And that is a good thing.

There have been major changes in loan information verifications used by lenders and in the settlement statements used by title companies. In one recent transaction the loan company could no longer use tax returns furnished by the Buyer due to new rules. The return had to be verified by the IRS in a separate verification to the lender.

In the massive subprime mortgage debacle, too many false tax returns evidently were used to qualify unqualified Buyers. However, the IRS said they needed 8 to 12 weeks to send out verifications. The closing was to occur 10 days later. What was everyone supposed to do? The title company closer knew a person at the IRS. One phone lead to another and soon the closing was back on track.

The same closer looked at the elevation certificate and said the elevation should be rounded up in order to get a lower flood premium. The insurance company was reminded and they issued the premium at the lower rate, saving the buyer over $1700 a year. Experienced title closers are important in any real estate transaction and Galveston is fortunate to have several ready and willing to share their expertise.

Next week: Termites in your Contract?

David Bowers is President of the Galveston Association of Realtors® and is associated with House Company Realtors. Contact David at (409) 771-4637 or at david(at)davidbowers.com

- Written By David Bowers

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