Delays, hidden costs can mean big trouble for buyers
RP Funding, a direct lender known for advising consumers to shop for a mortgage has some more advice that can save consumers money, time and trouble when buying a home: shop for a title company.
Because of recent abuses in the title industry, RP Funding is launching an educational campaign to help home buyers learn how to save money, headaches and time by choosing a good title company.
“Unfortunately, we’re seeing a lot of abuses in the title industry now,” said Robert Palmer, President of RP Funding. “Just as some consumers are taken advantage of by mortgage companies, some are being taken advantage of by title companies and foreclosure law firms.”
Those abuses can cost home buyers as much as ,500 in fees and other unjustified costs or throw their schedule into a tailspin. Palmer says that’s especially true for people buying REO properties.
“Banks typically pick the title company, and unfortunately, some banks are picking companies that are giving them something in return,” said Palmer. “That ‘something’ ends up costing consumers money. Often the buyer doesn’t find out until the day before closing.”
Closing problems cause nightmares for buyers
For some buyers, trying to close on their dream home becomes a nightmare. The problems include:
- Lost or late paperwork
- Last-minute fees
- Illegal signatures on documents
One Florida law firm has paid million to settle a slew of foreclosure fraud charges, which include forging some documents, while “robo-signing” others without reviewing them. In another case, lenders cut ties with what was once the largest foreclosure law firm in the state because of allegations of flawed paperwork, which left thousands of transactions in limbo.
A title policy for a 0,000 home costs about 5. While this fee is usually paid for by the seller giving them control to select the title company. According to Palmer the solution is simple “Buyers should offer to pay for the title policy and protect themselves from poor customer service, closing delays and thousands of dollars in inflated fees. Who wouldn’t pay 5 to save ,500?” RP Funding has seen consumers overcharged by just that amount, up to ,500 by companies piling on closing fees- usually at the last minute.
How buyers can protect themselves
RP Funding urges buyers to protect themselves – pick and pay for your own closing agent.
“The seller, or the bank in an REO sale, typically chooses the closing agent, but it doesn’t have to be that way,” said Palmer. “We strongly urge people to shop for a reputable title company, just as they would shop for the best realtor or the best mortgage loan for their situation.”
As part of its continuing campaign to help consumers protect themselves and save money when buying a home, RP Funding has identified numerous title companies in Florida who do offer discounts of up to ,000 for buyers who take the initiative, pay for the title policy and make their own choice. All it takes is a bit of shopping around to discover this type of savings.
“Only about 2% of buyers shop for their title company,” said Palmer. “You’re much better off shopping around to find a title company that will save you money and put your interests first – not the interest of some big bank. The peace of mind and other savings more than offsets the cost of the title policy.”
To learn more about RP funding go to RPFunding.com or call 407-802-3344.
On the web:
Title insurance fraud put under the microscope
Baltimore Co. title company owner pleads guilty to wire fraud
About RP Funding: RP Funding is a licensed Florida Mortgage Lender with offices in Maitland, Florida. As a direct lender, RP Funding underwrites, closes and funds its own loans in order to offer customers the best rates and highest level of service. Unlike banks and mortgage brokers, RP Funding offers “wholesale” mortgage rates directly to consumers to save them money. The only fee that RP Funding customers pay is when they choose to buy down to a lower interest rate through a rate discount cost. For more information, please visit http://www.rpfunding.com/.
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Posted On: Orlando, FL October 26, 2011
