Posts Tagged ‘real return’

Title Insurance and You: Do You Need to Pay for It?

Monday, March 14th, 2011

Many people who don’t completely understand the what title insurance actually is might question this item when the closing costs are added up. It is, however, a very important thing to have. As the name implies, the function of this kind of insurance is to ensure the integrity of the title to your home at the time its title legally passes to you as the buyer. Title insurance is designed to protect you in case there are problems or unknown legal complications tied to the title on the property which were caused by the actions or failures of previous owners.

In other words, title insurance ensures that that your ownership rights to your home are protected from any kind of liability arising time before you bought. This is an insurance policy which insures the “before” period of home ownership, unlike ordinary homeowner policies, which cover the “after” period.

After you complete the purchase of your home, if it were to come to light that there had been a tax or mechanic’s lien on it, title insurance would keep you from a disastrous financial loss from the circumstance.

It is all too common that someone will purchase a property and then discover that it has an encumbrance against it because of something that happened with a previous owner. You surely do not want to find yourself coping with such a situation without having the security of a good title insurance policy. Uninsured, you would have been exposed to a financial liability, which could amount to anything from a petty annoyance up to a big debt leading to loss of the property.

Title insurance covers homeowners against any disputes that come up from situations related to the title of your home before you purchased it. For example, if you buy a home that was sold to you in as part of a scam or swindle with illegal documents, the title insurance policy would cover you against any loss you might incur as a result. If any disputes were to arise regarding the chain of ownership of the property you have just bought, your title insurance policy would give you the coverage you need in that situation.

What Title Insurance Is Not

It is not protection against things you might do to jeopardize your ownership. It is strictly limited to ensuring that you have a clear title to the home at the time that title transfers. If you fail to pay the property taxes and a lien is filed, you will still have to take settle the debt yourself. Title insurance will not give you any protection that.

As one last reminder, title insurance does not cover anything related to the belongings or the structure of the property. You also need to take positive steps to insure your home against perils such as fire, theft, and natural disasters with a good homeowners policy. When you purchase your home, both title insurance and homeowners insurance provide different kinds of coverage, and you most certainly must have both of them.

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Do Housing Prices Have Further to Fall?

Monday, June 21st, 2010

Author: Ryan Moeller

In many areas market stability has not been restored. High inventory, high unemployment and high home prices will lead to further declines in home values. However, we are very close to hitting bottom and in many markets we already have. Remember, real estate is regional and you have to research not the entire country but down to the zip code, neighborhood, street and specific property. The article below sheds some light on Obama’s efforts and home values, a very interesting read. For more information, check out our Market Stability Report for info on your market and our Guide on Where to Invest.

Despite Obama’s Best Efforts, Housing Prices Have Further to Fall, Says Glenn Tongue

Posted Mar 10, 2010 01:23pm EST by Peter Gorenstein

What a difference a year makes. This times last year, the Federal Reserve, Treasury Department and White House were scrambling to do whatever they could to prevent home prices from falling off a cliff and thereby dragging the banking system down with it.

Now the Obama administration is set to launch a program on April 5 to encourage short sales. The plan will give homeowners and banks money if they sell the house for less than the mortgage is worth. The homeowner gets $1,500 to leave the house quickly and the bank gets $1,000 for going through with the transaction.

Time will tell whether or not it will be more successful than the struggling $75 billion mortgage modification program. Regardless there are still fundamentals in the marketplace the government can’t solve. “The inventory is too high, prices are slightly too high and unemployment is really quite high,” say Glenn Tongue, Managing Partner of T2 Partners and co-author of More Mortgage Meltdown.

Tongue tells Aaron, in the accompanying clip, home prices still have another 5-10% to drop before hitting bottom. And, though he admits “a year ago the situation was a lot worse” he’s still wary of investing in housing and financial stocks related to housing. In fact, his hedge fund is still shorting several companies in that business, though he would not name names, citing compliance rules.

Unlike last year, Tongue no longer finds the big banks attractive and instead focused on only a few specialty financial companies including Fairfax Financial and Resource America.

Real Return Real Estate™ for years has bought property at extreme discounts, sells and rents with tremendous cash flow. We also provide FREE tips, articles, guides and Educational Webinars. Visit our site http://www.realreturnrealestate.com for all the helpful resources.

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