Ohio County Courts Vary in Accepting New Judicial Commitment Endorsement

Republished with Permission from Chicago Title
At the end of 2008, the Ohio Department of Insurance approved a new rate rule which allows for the modification of a standard owner's commitment to be used in judicial foreclosures of both residential property (comprising of four or more single family units) and commercial property.
The new rule allows extension of the commitment coverage beyond the normal contractual time of six months, to a date 30 days after the recording of the deed in the name of the new owner at judicial sale. This rule only applies when both polices (or endorsements) are issued by the same underwriter. The new rule took effect on December 1, 2008.
The premium for this new endorsement (known as a Judicial Commitment Endorsement) is set at $.50 per $1000 based upon at least the unpaid balance of the foreclosed-upon lien and is used in lieu of the standard title guaranty premium, which compared to the $3.50 per $1000 premium for conventional Preliminary Judicial Reports, can result in significant savings. In addition, unlike the cost of the title guaranty, the premium paid for the title commitment with the Judicial Commitment Endorsement can be credited toward the purchase of an ALTA Owner's Policy by the lender after the Sheriff's Deed has been recorded.
Most of the county courts in Ohio have not changed their local rules to accommodate this rule change. If the court does not require Preliminary Judicial Reports by their current rules, they are more likely to accept the title commitment with the Judicial Commitment Endorsement. The three largest Ohio counties -- Cuyahoga, Franklin, and Hamilton -- do accept the commitment. Counties close to Cuyahoga County (Lake, Summit, Geauga, Lorain) presently do not, however, the potential cost savings involved make it worthwhile to educate the remaining county magistrates about this new title product.
Chicago Title has been serving Ohio for over 50 years. Through their nationwide network, they provide title insurance, underwriting, escrow and closing services to every spectrum of the real estate industry. For more information, visit them at www.cticnow.com.

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