The bank wants me to use their Seller Alta policy

[Sean Leahy]

I'm buying an REO from a bank. They want me to use their seller alta title policy. Is that a good idea? Can I buy a alta policy from that same title company? The property is located in Long Island New York. Also, can somebody recommend a low fee title company on Long Island? Thank you

[Kyle J.]

Do you mean the REO bank is steering you to a particular title company or the bank you're getting a loan from? I'm not sure why the REO bank would care where (or even if) you get a title policy. If you're paying cash, title policies are not required. However, I would still highly recommend you get one.

If you're getting a loan, the bank you're getting a loan from will require that you provide them with a lender's title policy.  And you do have the right to shop around.  

Keep in mind the lender's title policy only protects the bank's interests in the property should a problem with the title arise.  However, you can (and should) also purchase an owner's title policy to protect your own interests.  If you purchase the lender's policy and the owner's policy at the same time (which almost everyone does) from the same provider, you can get a simultaneous issue discount.  

Hopefully that answers your question.