Despite the ongoing crisis in the real estate industry, a new title insurance and closing services company has announced its opening in New York. MyClosingSPACE.com is making its debut in New York, offering residents across the state the ability – for the first time ever – to purchase title insurance and mortgage closing services directly online. Combined with the company’s lower costs for closing services, myClosingSPACE.com has already proven successful in New Jersey, Pennsylvania and Florida. More important, the company’s new business model signals the beginning of dramatic, and much needed, reform of mortgage and real estate industries.
Traditionally, title insurance is purchased for the home buyers (or refinancer) by the realtor, attorney, or lender. In fact, a recent consumer survey of the title industry showed that most consumers are not even aware they can actually purchase their own title insurance.
MyClosingSPACE.com will not only allow consumers to purchase title services online, but, in most states, get real time quotes on title insurance and closing costs as they shop for their home.
Sam Ingram, president of myClosingSPACE.com also points out another benefit to myClosingSPACE.com. “This is a very difficult time for many thousands of homeowners trying to convert adjustable rate mortgages into fixed rate mortgages. By saving considerable money in the closing process, refinancers will be able to put more money down on a conventional loan.”
MyClosingSPACE.com’s closing services can save homebuyers or refinancers as much as 30% off their closing costs in many states.
While title premiums are regulated, there are numerous search and closing-related fees that can vary greatly. Ingram believes consumers can make more intelligent decisions when they can see a breakdown and explanation of those fees, which the company provides as part of its services.
Virtually all mortgage lenders require a title insurance policy. Title companies research whether the seller really owns the property free and clear and has the legal authority to sell you the property. This process is called the Title Search. After that process is complete, the title is examined for liens, judgments, or property disputes.
At that point, a title insurance policy is issued that protects a buyer against errors or omissions referred to as “defects” in the title of the property. It is a contract by which a private title insurance company agrees to pay for any loss caused by defects in title.
“By going directly to the homebuyer, we believe myClosingSPACE.com will change the way title insurance is purchased. We make the closing process more affordable and transparent, and we think that’s very positive, especially in this critical period for the real estate industry,” adds Ingram.