Monday, June 23, 2008

query: what happens to my real estate title claim once I file it

Good question. Will it sit in a big pile gathering dust or will someone really start working on it? I've written about how to file claims, so I'll not repeat myself, but just say how you file it does set the stage.

You should look closely at the title policy and select the proper address for filing a claim. You want to send any claim via certified mail. Get evidence of the date you filed it. The title company will take note.

I also suggest sending a copy of the claim to the title agent or attorney who sold you the policy. They can't process the claim but they may help move things along.

Each title company has a claims department who evaluate the situation. They will decide if the claim has merit and how best to move forward. They have attorneys on staff and they also hire outside attorneys to help with litigation.

Your job is to monitor and make sure you are receiving attention. There are loads of claims being processed right now - much more than usual. Be vigilant. If you are not getting satisfaction, hire an attorney or contact the state insurance regulator.

2 comments:

david said...

I have a question given the following situation. We purchased a residential property for $225k the title company explicitly insured around a previous note on the property. The note has a face value of $200k but had a balloon payment 3 years ago. The penalty from the balloon payment may be as large as $60K to this point in time. Would the title company most likely pay us off or payoff the previous note?

D said...

If you have suffered a loss or your title is threatened, contact the title company and file a claim.

It seems odd to me that a title company would insure over a note that has not been paid. Perhaps you misunderstood.

I cannot see any circumstance in which you would receive payment. So, anyway, that's my two cents on the issue. ;)