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Title Company Selection Now Done by Buyer and Not Seller

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By : John Cutts    99 or more times read
The selection of a title company to do title searches for Fannie Mae-owned homes is now done by the buyer and not the seller, as specified in previous Fannie Mae real estate-owned policies.

According to the newest addendum released by Fannie Mae recently, the closing of a Fannie Mae home sale should be carried out at a place chosen by the purchaser. Additionally, Fannie Mae no longer requires buyers to pay all real estate transfer taxes and documentary stamps.

In the past, Fannie Mae was exempt from any state or local law requiring sellers to share in the transfer costs, forcing the buyer to carry the burden of paying all the transfer costs. In many cases, buyers have backed out of pending sales because of the burden of high transfer costs.

With the change in Fannie Mae closing policies, buyers can now feel more secure about their titles. Because they can choose more reputable and more nationally-known title companies, they can be sure that the title search would be done more thoroughly. In the past, title agents working for Fannie Mae contractors were not required to do title searches that go back 60 years of title change and transfer records.

To make quick title research, some title agents commonly depend on the foreclosure lawyer involved in the property, which limits the search to only records done after the time the property was foreclosed.

The great change not only gave the buyer the authority to choose a title company, it also gave the buyer more leverage in asking Fannie Mae to share in the transfer costs. Now, realtors dealing with real estate-owned properties and home buyers are hoping that other sellers would follow what Fannie Mae has done. The changes would certainly make home buying an easier task for buyers.

Home buyers new to closing costs, escrow issues and title searches can visit the web sites of reputable title associations, such as the American Land Title Association, American Escrow Association and National Association of Land Title Examiners and Abstractors. These sites offer useful guidelines to consumers.

They can also visit the websites of well-known title insurance companies, such as Fidelity National Financial, Chicago Title Corporation, American Pioneer Title Insurance Company, LandAmerica Financial Group, Old Republic Title, Statewide Title, Stewart, TA Title and the First American Corporation.

Choosing a title company which has been operating for decades and which has proven its stability is a significant part of successful home buying.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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