Ever the Naysayers
by Shawn Neely, ILTA Communications Committee Co-Chair
Despite Erica and Michaels’ story shared by Mr. Pellegrini last month, our industry is still plagued by the “Non-Believers” or “Naysayers” if you will. As you may recall, Erica and Michael were in a pretty sticky spot when through an error, the previous mortgage was not paid off at closing and foreclosure procedures began on their dream home. Fortunately enough, through the protection of their owner’s policy, Erica and Michael were able to keep their home. Though there are countless stories like this, almost daily from consumers, and all too often real estate professionals, the question is presented, is title insurance really necessary?
As I was preparing for this month’s installment of “Title Matters” I came across a blog thread on the real estate listing site Trulia where a homebuyer claims they had previously declined title insurance for their home purchases. As they are going through the process once again, their new attorney “highly recommends” purchasing title insurance. The homebuyer asks the forum, “Know any scary stories about people without owner’s title insurance?” I couldn’t help but to laugh out loud as the first response was from Anthony Homebuyer of Sanibel, Florida commenting that “title insurance is the biggest rip-off out there. The only people pushing it are the people putting your money in their pockets. I live and have lived in [Massachusetts] for 40 years and never have nor will I ever purchase title insurance.”
Do you think Erica and Michael found their title insurance policy to be a “rip-off”??
I’m happy to report, the thread continues with multiple accounts in which title insurance has saved the day in varying situations, convincing our homebuyer, without doubt, to purchase the owner’s policy in question. The stories shared are commonplace for title professionals but just not as obvious to the everyday homebuyer.
Our committee and association urge you to share your stories wherever you and whenever you can. Post on social media, your website, or a blog. The more we share our stories the more we can change the perception of those “Naysayers” that believe our product is some type of “rip-off” and should be anything less than a requirement when purchasing a home.
I’m sure Erica and Michael would agree!
*You can review the Trulia thread for yourself here: