Procurement of Hold Harmless Letters from Other Title Companies

TO: Chicago Area ATG Members and Agents

FROM: Christine M. Sparks

DATE: July 27, 2009

RE: Procurement of Hold Harmless Letters from Other Title Companies

 

ATG’s Hold Harmless Department procures hold harmless letters from other title companies as a service to our members. We work with other title companies and title agents on a daily basis. Obtaining hold harmless letters is becoming increasingly difficult and it may become necessary for you to become involved in procuring a letter.

Frequent refinancing has made obtaining hold harmless letters a difficult task. Typically, title companies will not issue a hold harmless letter if they did not insure the owner. It frequently becomes necessary to determine which title company paid off the mortgage in question. There are times when we will need your assistance in obtaining the letters. As the Insured’s counsel, you have more leverage with the other title company than we do. We will continue to try to obtain letters for you, but we may need your help if the other title company is not being responsive. Other title companies are more responsive to a request for a hold harmless letter if the request is accompanied by the HUD, policy, or closing documents from the transaction that the other title company closed.

Many hold harmless departments at other title companies now have a minimum turnaround time of four business days. Others have a significantly longer turnaround time. In addition, some companies require a copy of the policy and signed HUD to process the hold harmless request. Please forward your requests to us as soon as possible so that we can obtain the letter before your closing. ATG or the member must have the hold harmless letter before the exception in question is waived.

Also, it is very difficult for us to keep track of when your transaction is closing. When we receive a hold harmless letter from another title company, we fax it to you right away. If we have not sent it to you, we probably have not received it yet. When possible, if you have not yet received your hold harmless letter, please contact the Hold Harmless Department at least one day in advance of your closing so we can follow up with the other title company. Please do not assume that ATG has received the hold harmless letter unless you are told so by the Hold Harmless Department.

If you have any questions, please do not hesitate to contact me. Requests for hold harmless letters should be sent to the Hold Harmless Department. The contact information is:

Email: Hold_Harmless@atgf.com

Fax: 312-224-0255

Phone: 312-752-1982

Christine M. Sparks

Claims Attorney and Manager - Hold Harmless Department

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