Forms Required By Title Company Pre-closing w/VERY personal info?

8 years ago

My realtor just sent me several forms that need to be filled out by us and sent to the title company. We haven't even had an inspection yet, but they're wanting our social security numbers, bank account information, loan information for the house we're selling. I just feel like it's a ton of vulnerable information to provide prior to closing. Granted, I haven't sold a house since 2004 so things may have changed, but I never filled any of this stuff out the last time and I'm a bit nervous about giving out all of my information. Any thoughts?

Featured Answer

Denita

8 years ago

last modified: 8 years ago

This is a normal request for sellers by title companies. The title company does need this information timely to ensure that the property has no liens or encumbrances. They have to run your information in public records to check for judgments and have to order the pay off for your current loan. You can wait until the inspections are completed if you are worried about the buyer not completing your sale. If you are worried about sending this info through email, then find out if the title co has a website where you can upload the info privately or send the info encrypted.

Check your states statutes to see what your state requires from title companies. Title companies have to be licensed. Many title companies are associated with an attorney. Check with your Realtor about the title companies reputation. If they don't know, check with your agent's broker.

I understand your hesitation, but I can assure you this is a normal request. It can't be done at closing.

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Comments (17)

Heather A
Original Author
8 years ago
Heather A
Original Author
8 years ago
This one really skeeves me out for some reason.
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C Marlin
8 years ago
You can wait until after inspection to respond.
C Marlin
8 years ago
last modified: 8 years ago
The title company needs enough information to know the property status. Just don't view it a VERY personal.
Heather A
Original Author
8 years ago
My concern is with this information they can pretty much do anything they want. It is VERY personal information that if it's in the wrong hands could cause quite a bit of damage.
Heather A
Original Author
8 years ago
Thank you Denita, that helps a lot. Things seem much different in this entire process this time around. With all the identity theft these days it's a scary world to live in records wise.
Denita
8 years ago
last modified: 8 years ago
I think it is wise to be cautious like you. Better to ask than to just send it in without knowing why or find out a better way to get the info to the title co. Some of my sellers like to hand deliver the info. The title co will understand why you want to encrypt the email if you go in this direction. They are safety aware too..or should be aware:)
Heather A thanked Denita
Heather A
Original Author
8 years ago
I believe my realtor will be hand delivering it. He's coming over this afternoon. Thanks again!
User
8 years ago
Someone explain to me why they need my SSN. Explain better, please.
gardengal48 (PNW Z8/9)
8 years ago
Your Social Security number is how your credit history is tracked. Names can change or are assumed (sometimes illegally) but your SSN is with you from birth.......as is the credit and employment history associated with it :-))

And both of those are features that need to be established/confirmed by the title company and lender.
sushipup1
8 years ago
I believe that this all came about with the new banking rules that came from the Patriot Act. Deals with money laundrying and identifications.

https://www.fincen.gov/resources/statutes-regulations/usa-patriot-act
User
8 years ago
Lenders and banks need SSN but title co. They need your worn history?
Denita
8 years ago
last modified: 8 years ago
The closing attorney/title company have to have a written payoff for the sellers' mortgage and the form that the banks require for the written request has to show the borrower's SSN.
B Carey
8 years ago
The title company needs your social security number. If you think about it, you are really not giving them any more information than you give a lender to get a mortgage. The title company is going to do a search on all parties to the transaction. They also could potentially be writing you a huge check if you have a lot of equity in your home.
Denita
8 years ago
^ Yes, and reporting the sale to the IRS
User
8 years ago
Thanks, explains it.