Fannie Mae: You can now choose your own Title / Escrow Company
Fannie Mae: You can now choose your own Title/ Escrow Company
Many homebuyers have encountered the typical experience when dealing with a title company. After driving around for days and putting in countless offers, they get an offer accepted to only have the listing agent tell them and their agent that they have no choice in who they can use in regards to their title insurance and escrow company.
Once you sign the contract you are told to open escrow by depositing an agreed amount known as an Earnest Money Deposit. This company happens to be on the other side of town or sometimes out of state. It is rare that someone will get an title insurance and escrow company that is close by. Call it Murphy’s Law!
Here comes the fun part! You call and you get an endless stream of voicemail boxes and no human person answering your call to find out the best way for you to get to their location. You try everything and finally get the receptionist on the phone who tells you the escrow officer is on vacation. She goes on to tell you nothing at all other than you can leave a message. You call your agent, who then calls the listing agent, who then tells you to keep trying to reach someone and then everyone sends emails expressing their frustration over the matter. Now you get a response telling you that the escrow officer handling your file is in another office and will be back next Monday.
Imagine the bad taste that leaves in your mouth, especially since you were forced to deal with these imbeciles? Welcome to the world of REO affiliate agreements!
We the good news is this. Fannie Mae has finally decided that it would be best to allow a buyer to choose (which is your right in the first place) their own title and escrow company.
Fannie Mae has changed their sales addendum for REO properties, allowing the buyer to now choose their own title & escrow company.
When you see the addendum to the contract, review Section 2B, page 1, line 4. Look for “The closing shall be held at a place so designated and approved by the Purchaser“. The truth is you have always had the right, per RESPA requirements, to choose your title and escrow company. Thanks to some common sense, the new addendum change, it now reinforces that right.
Save yourself some grief and headaches and ask around for a dependable title insurance and escrow company that answers the phones and doesn’t try to pass on the buck to the girl that just took off on vacation. In a world where customer service is synonymous with toilet, it is lousy to have your home buying experience be affected by a simple yet important aspect of the real estate transaction.
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With 11 years in the lending industry, Ted is proficient in structuring the client’s loan to ensure that the client obtains the best financing. He has become a recognized leader in real estate education and hosts real estate seminars for his clients and the business communities in the Southwest. His attention to the details and in-depth knowledge of the loan process ensures that you are getting the best service possible.
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