Don’t Reject Assets Without Title Policies in Note Due Diligence: Title Replacement Policies Now Available in Two Days!
It came to my attention that some larger funds are kicking loans without title policies as part of the collateral back to the seller. This may no longer be needed with ProTitleUSA’s new workflow solution.
Some real estate note funds requested ProTitleUSA to use its due diligence search
for production of replacement policies in the course of due diligence. We have created a 50 state solution approach where it will take an average of two days to issue a policy replacement. Buyers of assets that don’t have a policy would get reimbursed by sellers for the premium and overhead expense on the policy production if the asset is to remain in the note purchase transaction. Additionally, there is an ability to run a title policy search and retrieval for assets where the title policy was issued by a major underwriter.
The best part of the new offering is that the title policy replacement will be delivered in time of the due diligence cycle without much delay as the speed to produce is typically two business days if ProTitleUSA’s search was used in due diligence on the note purchase.
Attorney Certificates are available in all required states and policies are produced by major underwriters through title agents in all 50 states.
In some cases, the underwriter will not be able to insure the title and unable to issue a replacement policy due to title defect, prior lien, ownership issue or foreclosure on file. ProTitleUSA can also run a series of curative actions to go from uninsurable title to insurable. This effort takes more than two days of course, but it enables clients to add the compensation for curative action on side letters to cure with longer timeframes for reimbursements.
If you are interested in taking a look at our Title Policy Replacement product, please email Veronica Rudan at firstname.lastname@example.org