Mortgages Made Simple with Rick Gundzik

Wednesday, May 4, 2005
Title Insurance
What is title insurance? Title insurance is a necessary evil in the real estate world. Don't get me wrong, it is essential, but it's sooo expensive.

Title insurance is protection against loss arising from problems connected to the title to your property. Before you purchased your home, it may have gone through a few ownership changes. The land that your house is on probably went through many more. Over the years an error could have been made that could cause a problem. The most common problems would be unpaid income taxes, unpaid real estate taxes or possibly a mechanic's lien. Title insurance protects the lender from any of these types of claims to your property.

Title insurance doesn't protect your equity unless you were to buy an owner's policy. It doesn't protect you or the lender from future liens. This is why a new policy will be required for the person who buys your home. The new policy would protect their lender from anything you might have done wrong.

If you have any questions, please contact us.
posted by Pac Res @ 9:38 PM  
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