(no subject)

[noahgibbs]

One question I got repeatedly from coworkers, when talking about a house, was "did you sign away your soul to the Title company yet?" I hadn't. As of this morning, I have. And they're right, there's a *lot* to sign.

And since, unlike apparently everybody else the Title Company guy signed up, I actually read all the legalese. I'm scared that I'm the first person he's seen do that.

I'm now also scared of what happens if my house is destroyed in a fire, but then apparently most people don't read about how all of that works. The fact that I may find myself saying, "now where can I raise $120,000 in a hurry, just for a couple of weeks?" doesn't make me happy. When the Chicago Title guy tried to reassure me by saying that was a standard section of all such agreements it didn't make me any happier.

Apparently in case of the destruction of my house or any substantial portion thereof in a disaster, the agreement states that the house needs to be repaired or replaced unless the bank and I agree otherwise, in writing, in advance. Okay. It also states that the insurance money goes to the bank first, instead of me. And I'll pay for the repairs, to be reimbursed by the bank. But that means that I need to come up with the money to get the repairs rolling, and I need to do so *before* I see any of the insurance money.

On the plus side, if I stamp my foot, refuse to do the repairs and decide I'm going to live in a shack made from duct tape and Saran Wrap, at least the insurance money gets applied toward paying off the loan. Lovely.

I suppose the advantages of being a squatter are pretty much negated if you already own the property in question.

Comments

[rubybluenote.livejournal.com]

My question is: What ACTUALLY happens? If it's a standard clause, surely people would be kicking and screaming about having nowhere to live in situations like these. Is it just a butt-covering exercise for the bank?

[luwenth.livejournal.com]

My bet is that should you really lose the house like this, you'll not have to come up with the entire 120k at once, more like you'll be making weekly or monthly payments to a contractor as they reach goals, and turning around and getting the money from the bank at essentially the same time. And it may even be that you end up with the money in an account that the bank is a co-signer on and you write the checks out of that to the general contractor for rebuilding your house. But then, I could just be overly optimistic.

Funny Thing, that.

[misternihil.livejournal.com]

Both when Dad read through the contract and when I did, the agent (don't even get me started on the crooked qualities of that whole setup)said we were the first he'd seen do that. At a single sitting, the Title Insurance agent, the people who make sure I actually have the money and actually want the house, said it to both myself and the seller.
It almost seems to be a prereq of having that job.
It seems, at least around here, to be like "I've had some great tour groups, but you guys are the best. Really, I mean it." Earnest, complimentary lies.
They also say that at the bank, when I read through the account information. Maybe that's why the dot commers around here busted so badly.