This is the section where additional information might be helpful with your upcoming transaction. Be sure to check back on a regular basis for new and valuable changes!
Title Insurance - Lender's Policy and Owner's Policy:
Title insurance is a necesarry evil for property owners and lenders.
A one-time title insurance premium paid at the time of property purchase, or when a mortgage is refinanced, protects the owner and the owner's heirs from unexpected title risks.
There are two types of title insurance policies:
Lender's Policy: This protects the lender's loan secured by real estate. Insured lender title protections include forged signatures in the chain of title, recording errors, deed-indexing mistakes, unpaid property taxes, other recorded liens, improper foreclosures, title search errors, undicslosed recorded easements, and title claims by heirs and ex-spouses. Property surveys can also be insured.
Owner's Policy: This protects the buyer's equity as long as the insured or heirs own the property. As the mortgage is paid down and the insured equity grows, the owner's policy becomes more valuable.
For a $200,000 property with a $180,000 mortgage, the lender will require a $180,000 lender's title policy. For an extra title premium, you can insure your $20,000 equity, which will grow as you pay down the mortgage balance.
