Frequently Asked Questions

1. What do I need to bring to the settlement?

You will need to bring a valid government issued picture ID such as a Driver's License, Passport or Military ID. Additionally, if you are bringing money to the settlement these funds will need to be "certified funds". Certified funds can come in the form of a cashier's check with the check made payable to Valley Settlement Services, LLC so it can be deposited in our Trust Account. Cash is only acceptable in small amounts. Please call our office in advance if you intend to bring cash to settlement. If there are additional documents needed for closing we contact you in advance to your arrival at closing. Valley Settlement's goal is to ensure that you leave our office with a smile.

3. How far in advance should I contact Valley Settlement Services to handle my settlement?

If you are purchasing, you should contact us as soon as you have a completely signed contract. At that point we can tentatively get your settlement on the calendar and let you know what you next steps will need to be. Normally your lender and/or your real estate agent will forward us your real estate contact once you have told them you are obtaining our services.

If you are refinancing, you should contact us once you have filed your loan application with your lender so we can tentatively scheduled your settlement on the calendar. At that time we will get homeowner's insurance information, along with your current payoff information so we can obtain same for your new settlement.

5. Who attends a settlement?

At a "purchase settlement," typically the sellers, purchasers and their real estate professionals will attend the settlement which will be conducted by one of our competent and experienced settlement officers. At a refinance settlement usually only the borrowers and the settlement officer are present.

7. Why do you need Title Insurance?

To protect possibly the most important investment you'll ever make- the investment in real estate.

A lender goes to great lengths to minimize the risk of lending money for the purchase of real estate. First, credit is checked as an indication of the borrower's ability to repay the loan.

Then, the lender seeks assurance that the quality of the title to the property to be acquired and which will be pledged as security for the loan is satisfactory. The lender does this by obtaining a loan policy of title insurance.

The loan policy protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist, but may not be known at the time of the sale. BUT this policy only protects the lender's interest. It doesn't protect the borrower. That is why a real estate purchaser needs an owner's policy, which can be issued at the same time as the loan policy, usually for a simultaneously one-time fee.

If the lender has title insurance protection and the owner does not, what possible danger of loss exists?

As an example, assume real estate was purchased for $100.000.00. A down payment of $20,000.00 is made and a lender holds an $80,000.00 mortgage lien, or beneficial interest. The lender acquires the title insurance protecting the lender interest up to $80,000.00, however the purchaser's down payment of $20,000.00 is not covered.

What if some matter arises affecting the past ownership of the property? The title insurance company would defend and protect the interest of the lender. The purchase, however, would have to assume the financial burden of his or her own legal defense. If the defense is not successful, the result could be a total loss of title.

The title insurance company pays the lender's loss and is entitled to taken an assignment of the borrower's dept. The purchaser loses the down payment, other equity in the property that may have accumulated, and the property. And the balance on the note is still due!

Title insurance is issued after a careful examination of copies of the public records, however, even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a title search.

Here are just a few of the most common hidden risks that can cause loss of title or create an encumbrance on title:

• False impersonation of the true owner of the property
• Forged deeds, releases or wills
• Undisclosed or missing heirs
• Instruments executed under invalid or expired power of attorney
• Mistakes in recording legal documents
• Misinterpretations of wills
• Deeds by persons of unsound mind
• Deeds by minors
• Liens for unpaid estate, inheritance, income or gift taxes
• Fraud

Title Insurance will pay for defending against any lawsuit attacking the title as insurance and will either clear up title problems or pay the insured losses. For a one-time premium, an owner's title insurance policy remains in effect as long as the insured, or the insured heirs, retain an interest in the property, or have any obligations under a warrant in any conveyance of it. Owner's title insurance, issued simultaneously with a loan policy is the best title insurance value a property owner can get.

To see more please check out First American Title Insurance website or Lawyers Title Insurance website.