Why Use a Title Company?
In order for you to make that promise to your lender, (you lend me money to buy the property, and if I don't pay you back, you get to keep the property) you have to show the lender proof that you own that property, or that the person selling the property owns that property.
For title to be clear, ownership must be established by looking at this "list" which is also called the "Abstract". Depending on the legal requirements of a particular state, an attorney licensed in the state or a qualified abstractor, will conduct a title exam, and produce and abstract that determines who owns the property - if you own it, you can guarantee the loan with or sell the property. As part of the abstract report, any other liens or judgments attached to the property - liens and judgments are outstanding monies owed, usually by the property owner that the property owner fails to pay - are noted. Examples of debts that could become a lien or judgment would be an outstanding Home Owners Association bill, or if you fail to pay a contractor for work on the property. Or even, say you are sued, that judgment against you could one day affect the title to your property if you don't pay it. This whole process is called a title exam. If problems are found, generally called a "cloud" on title, you can work with the attorney and title company to clear those clouds, and then you can close your loan.
As part of the process, the title company will help you payoff your old mortgages through the closing process. The funds to pay off old mortgages are escrowed at closing, and then paid on your behalf. Once paid, the old mortgage is "released" and then the release of that mortgage is also recorded with land records, showing it as paid in full.
The title company is responsible for determining any applicable taxes regarding the real estate, and collecting and paying those also on your behalf. We underwrite the lenders insurance policy, as required by the lender, and then facilitate the loan closing. A property owner may also purchase an owners title insurance policy, to protect their interest in title.
The settlement, or loan closing, is where you sign off on all the documents required to process the loan. We help you sign your loan package, and provide notary services as needed.
After the loan disburses into our escrow account, we make sure all the proper parties are paid, and overnight to you any loan proceeds. For a refinance there is a three-day rescission period - three days for you to change your mind about having the loan before the funds are disbursed. Sales generally disburse the same day.
SMG, Inc. provides you with ...
- Title, escrow, and loan closing services complying with the laws of each state in MD, WV, PA, VA, NC and DC. In attorney states, we retain General Counsel to represent us before that states bar, communicating closely with them our business practices and how we are complying with any state requirements.
- Title commitments guaranteed within 5-8 days with our 3 day rush option.
- In-home or in-office mobile settlements, evenings and weekends with full notary services
- We will prepare and fax you a copy of the HUD the same day we receive your loan docs- Send the documents early, receive your HUD early!
- Obtain payoff information for outstanding mortgages on properties
- Meet all lender post-closing requirements
- Disbursement of all funds, with wire services utilized for payoffs of all mortgages and avalible to clients for receipt of their proceeds.
- TIMELY recording of all deeds of trusts, deeds, releases, with the county land records
- You always know exactly where your title stands-we stamp all title orders received, with the date you will receive the commitment, and the name of the person who will process the loan. They will be faxed back to you the same business day-so you will know that your order was received, who your processor will be, and when to expect your commitment (which includes the actual commitment, tax information, legal description, ICL, mock HUD, and wire instructions).
- All applicable taxes are calculated prior to, and collected at closing
