A title company plays several important roles in a real estate transaction. Generally, title companies act as a combined agent of the insurance company, the buyer or borrower, and the mortgage lenders. It’s the title company’s job to review the title and issue insurance policies, facilitate the closing, and file vital paperwork. For these reasons, the title company will need certain information from your client.

Researching the Title

For the title company to do its job for you and your client, they will need as much information on the property as possible. Obviously, that will include the complete street address, but any other information your client has can be helpful. Your title company will then use this information to review any public records related to the property. Then, they will inform all parties of the status and condition of the title.

Preliminary Title Report

Once the company has all the necessary information from your client and completes their search, they will announce their findings in a preliminary title report. This report is also known as the commitment for title insurance. Not only will the title company provide all records related to the title, but they will also provide info related to any foreclosures or legal action taken on the property in question. The report will ensure that the property is ready for purchase. This means there are no unfound outstanding mortgages, liens, judgments, or unpaid taxes on the property.

Keeping You Informed

As the title company performs its necessary work, they will keep you and your client informed along the way. They will let you know if anything comes up during the title research process that needs further clarification.

Are you looking for a reliable title company for your real estate transaction needs? Give Innovation Title a call today!

It’s unfortunate, but in today’s world, there are scammers and hackers just waiting for a way to steal your hard-earned money. This is true for real estate transactions as well. During a real estate transaction, large sums of money are usually required at the closing. Wire transfers typically deliver these sums. Scammers are taking advantage of this by targeting first-time homebuyers, or other inexperienced individuals, and intercepting the wired funds. Read on for some important cyber security protection tips for real estate transactions.

Beware of Suspicious Emails

The primary way scammers can interject themselves into real estate transactions is by first hacking your email. Beware of phishing emails that appear to be from legit companies or businesses. Never click on any links in an email asking for personal information. If you’re unsure if an email is from a legitimate business or not, call that company with the phone number listed on their website. Never call the number listed in the email.

Be Suspicious of Any Email Alerting You to Wire Transfer Changes

It is very unusual for a title company or real estate agent to change their wire transfer instructions. If you receive any email with wire transfer instruction changes or anything that seems odd, do not click on any links in the email. Do not call the number in the email. Instead, contact your title company directly and ask them if they sent the email.

Always Confirm Wire Transfer Info

Once you’ve gotten wire transfer instructions from the title company themselves, confirm all that information with your bank. Confirm account numbers, names on the accounts, and any other info you were given.

Verify Transfers Right Away

Once you’ve gotten the correct wire transfer instructions, be sure to contact your title company as soon as you’ve completed the transfer. Verify that they’ve received the funds, and be sure to keep any confirmation numbers or other information for your records.

If you have any questions about the wire transfer process, contact Innovation Title today.

After two months of decline at the beginning of the summer, pending home sales rebounded in August. Every major region in the US grew month to month in contract activity. The PHSI (Pending Home Sales Index) went up to 8.1% in August. So, what does this mean?

What’s the cause of the home sales increase?

Economists and researchers are crediting rising inventory and moderating price conditions for the recent increase in home sales. However, affordability is still an issue since home price gains are roughly three times the wage growth. According to Lawrence Yun, NAR’s chief economist, this kind of imbalance is unsustainable over the long term. “The more moderately priced regions of the South and Midwest are experiencing stronger signing of contracts to buy, which is not surprising,” Yun said. “This can be attributed to some employees who have the flexibility to work from anywhere, as they choose to reside in more affordable places.”

Is the PHSI reliable for tracking home sales?

The PHSI is seen as a leading indicator for the housing sector, but it is based on pending sales of existing homes. A sale is classified as “pending” when a contract is signed, but the transaction is not yet closed. The sale is then usually finalized within one or two months of signing the contract. Pending contacts are a reliable indicator of upcoming sales. However, the length of time between pending contracts and completed sales are not the same for all sales. The length of time varies due to difficulties obtaining financing, inspection problems, or appraisal issues.

If you’re a real estate agent or mortgage broker that’s getting swamped during the rising housing market, let us know. When it comes to any real estate transaction, it helps to have Innovation Title on your side. Give us a call for more information today.

A person can own real estate for their primary residence or an investment rental property. For either type of use, a title will legally identify their ownership of the property. There are different kinds of real estate titles, and it’s essential to understand the details of each so you can properly assist and advise your clients. Here’s a breakdown of the different ways to hold a title.

Sole Ownership

A sole ownership title holding happens when a person or entity can legally hold the title by themselves. This situation can apply to a single (non-married) person or a married person with property apart from their spouse.

Joint Tenancy

When two or more people hold title to real estate jointly, this is called joint tenancy. Both people have equal rights to the property during the duration they hold the title. If one of the partners passes away, the ownership rights go to the surviving tenant. This legal relationship is called the “right of survivorship”.

TIC (Tenancy in Common)

A TIC refers to the instance when two or more people hold title to property jointly with either equal or unequal percentages of ownership. For example, Person A could have a 40% interest in a property, while Person B can have a 60% interest in the same property. Person A wouldn’t be limited to only access to 40% of the property for 40% of the time. Each owner has the right to use the entire property whenever they wish. The percentages only apply to financial ownership.

TBE (Tenants by Entirety)

This method of holding title is only for when the owners are legally married. TBE applies in real estate and works under the assumption that both parties are one person in legal terms. The title would transfer to the surviving partner if one were to pass away.

If you have any questions about the different ways to hold title, give Innovation Title a call today!

As a real estate agent or a mortgage broker, you’ve probably received many questions from clients regarding the transfer of a deed. Some homeowners may want to transfer a property to a family member or business associate. Others may wish to donate a property to charity. All the options involve the transfer of a deed. Deed transfer requirements differ depending on the type of deed and the state’s laws. Makes sure your clients know that they will need specific deed forms to start the transfer, and they must follow all state-specific requirements.

Transfer on Death Deed

A TOD, Transfer on Death Deed (sometimes called a beneficiary deed), allows the owner complete control of the property until they pass away. In this event, the transfer will be made to a select individual. This type of transfer is one of the most common ways for a deed to change hands to family members. The owner can also change their mind at any time and change beneficiaries. Using a TOD means your client can avoid going through probate.

Gift Deed

A gift deed allows an owner to transfer the deed to a family member or charity voluntarily. Property owners usually prefer this option when they want to make a delayed gift. Gift deeds are revocable, but they can be irrevocable as well. To legally be considered a gift, the deed must explicitly state that no compensation is required. The donor of the gift deed is always responsible for paying any applicable gift taxes.

It’s important to remember that the transfer of a deed is a process that requires the guidance of professionals, and it must be done correctly to protect all parties. Be sure your clients understand that the entire process must be researched beforehand, and they plan for all necessary taxes. Have questions about a deed transfer? Innovation Title can help! Give us a call today.

Recently, Fannie Mae launched a brand-new feature in its automated mortgage underwriting system. The goal was to incorporate their customers’ rent payments in the mortgage credit review process. Let’s explore this new underwriting technology and what it means for mortgage loans in the future.

Single-Family Lenders

Beginning in September of this year, Fannie Mae’s Desktop Underwriter (DU) will automatically allow single-family lenders to recognize recurring rent payments in applications. With permission from the applicant, this can deliver a more inclusive credit review. Imagine how this could change the process for hopeful first-time home buyers!

Limited Credit History No Longer a Determining Factor

Qualified renters with limited credit history but a solid rent payment background could be approved for home loans they couldn’t have qualified for before this change. Not only does this promote safe and sound lending, but it also makes home buying accessible for those that have always made paying for housing a priority. What a positive change for eligibility nationwide!

The Details

Only consistent rent payments can improve eligibility. However, this doesn’t mean a missed or late rent payment will negatively affect an applicant’s chances at loan approval. It will simply not be included in the approval criteria. Rent payments will appear in the payment history of the borrower’s bank account data and will easily be found by the new underwriting technology. This could completely change the game for first-time homebuyers and buyers who have a lapse in their borrowing history.

Making Home Buying More Accessible

According to Fannie Mae, this new mortgage underwriting technology will make a big difference in who can qualify for home loans. Lenders factoring in consistent and reliable rent payment history are opening homeownership to those who may have otherwise been turned down. In a recent sample of first-time homebuyer mortgage applicants who did not receive a favorable recommendation through DU, 17% could have been approved if their rental history was considered. Wow!

The title process is arguably the most overlooked part of a real estate transaction. Read on to learn more about the title process and how each step allows title companies to ensure that the transaction can be completed.

What is a title?

A title is a piece of documentation that says who legally owns the property described in the deed. The title is a very important piece of the overall real estate transaction. While a deed is the official written document stating a person’s legal ownership of the property, the title refers to the concept of ownership rights.

The Search

A title company will begin a series of multiple searches, including but not limited to property searches, owner searches and tax searches.

Review

The title company will painstakingly review the results of the searches to provide the buyer with the most current and accurate information. Most buyers want to have all of the updated information regarding every aspect of the property they’d like to purchase.

Handling Issues

If issues preventing the transfer of a title are found with a property, it does not necessarily mean that the real estate transaction cannot be completed. First, all parties involved will be informed when impediments are found.  Then, the title company will provide options on how to proceed. Experienced title companies like Innovation Title, Inc., have previously come across nearly every possible scenario and can prescribe the next steps. This insight has proven to be an extremely valuable service to many people we have worked with.

For any questions on the title process, we can help!

For anyone involved in a real estate transaction, it’s essential to understand the difference between a deed and a title. Both documents are incredibly important to the buying and selling process, but for very different reasons. Read on to learn more.

What is a deed?

Both deeds and titles are legal documents. However, there are some key differences. A deed is a legal document that changes hands when the property is transferred from one owner to the next. It will thoroughly detail the property lines and any other important details about the property. At the closing, the signing of the deed is witnessed before it gets to the buyer. Both signatures are necessary to make the document legally binding.

What is a title?

A title is a piece of documentation that says who legally owns the property described in the deed. The title is a critical piece of the overall real estate transaction. So how does a title vary from the deed? Well, the most significant difference is the physical component. While the deed is the official written document stating a person’s legal ownership of the property, the title refers to the concept of ownership rights. While a seller may possess the deed paperwork, that doesn’t necessarily mean they have the right to own the deed, and ultimately the property.

Verifying a Title

For a title to be “clear”, a title company is hired to do the vetting and perform a title search. This process searches the history of the title and makes sure there are no liens, outstanding mortgages, judgments, or other issues that may jeopardize the sale of the property. The goal is to ensure the buyer will own the property free and clear. The title company will also guarantee the verification through title insurance that the buyer can purchase. Title insurance protects both the lender and the owner in case a claim to the property surfaces.

Have further questions about the difference between a title and a deed? We can help! Contact us today.

Buying a home or property involves a lot of players. One of the most important and often understated players in the process is the title company. The primary role of a title company in a real estate transaction is to verify that the title of the property is legitimately given to the buyer. In other words, the title company makes sure that the seller has full rights to sell the property. Read on to learn more.

The Difference Between a Title and a Deed

If you’re new to the home buying process, you may not realize that there is a difference between a title and a deed. There is indeed a difference, and it’s essential to understand what that is. A deed is a legal document that changes hands when a property is transferred from one owner to the next. When you close on a property, the deed is signed and witnessed before it gets to you. The deed will include a written description of the property. On the other hand, a title is a piece of documentation that says you own the property described in the deed. The title is a crucial piece of the overall real estate transaction.

The Verification Process

The main job of a title company is to verify the title. To do this, they perform a title search. This process searches the history of the title and makes sure there are no liens, outstanding mortgages, judgments, or other issues that may jeopardize the sale of the property. The goal is to make sure you will be able to own the property free and clear. Once the verification process is complete, the title company will insure the verification. Title insurance protects both the lender and the owner if someone eventually makes a claim to the property.

For all your title needs, contact Innovation Title Inc!