As a hard money lender, I see a lot of closing statements (aka HUDs) from a lot of title companies. I’ve noticed an annoying trend that is also disturbing.
When I’m lending money to a real estate investor, I send the title company my very detailed and specific lender requirements – one of those being a basic Lender’s Title Insurance policy from a well-rated underwriting company. In most cases, I do not require additional Insurance endorsements, and I never require a closing protection letter.
In fact, part of my title order says: “Do not add endorsements unless specifically requested. Do not issue a closing protection letter.” Yet, several title companies still try to include them. Sometimes many of them.
Like this one, from an actual preliminary HUD:
- Closing/Settlement Fee to [xxxxxxx] Title & Escrow Co. $295.00
- Courier/Shipping & Handling to [xxxxxxx] Title & Escrow Co., $25.00
- Read More...