Could this happen to you??????

With all the uncertainty in today’s real estate market,
homebuyers can be certain that purchasing a First American
Title Owner’s Policy is a solid investment that will provide
vital protection against losses should a problem with the
title arise.
There are two types of title insurance: owner’s title
insurance, called an Owner’s Policy; and lender’s title
insurance, called a Loan Policy. Most lenders require a Loan
Policy when they issue you a loan, and the fee is usually
based on the dollar amount of your loan. It only protects
the lender’s interests in the property. It does not protect the
buyer.
A recent news article tells of a homebuyer who purchased
a home on a land contract and made monthly payments
of $1500 to the seller until they were able to secure a loan
from a national lender. At the time, the lender required the
buyer to purchase a Loan Policy. Because it is not required
by law to purchase an Owner’s Policy, the homebuyer closed
on the home with only the lender’s interest being protected
by the Loan Policy.
Several years later, the owners of the home were notified
that their house was being foreclosed on and the sale date
was fast approaching. How could this have happened? As it
turns out, there was a prior loan on the home that was never
paid off by the previous owner. Because the current lender
had required a Loan Policy, their interest in the property was
covered. Had the current owners invested in an Owner’s
Policy, they too would have been covered. Unfortunately,
without title insurance, they lost their home. Additionally,
the resulting foreclosure may adversely affect their credit
standing for years to come.
The homebuyers in the story above stated,
“We didn’t buy title insurance. We
were first-time homebuyers. Had we
known about title insurance, [we]
definitely would have gotten it.”
Many homeowners mistakenly think that because a title
search has been done on the property their interest is
protected.
One thing is certain…If more homebuyers were aware of the
protection a First American Title Owner’s Policy provides,
they would purchase one, and eliminate the unnecessary risk
of losing their home.

This entry was posted in Uncategorized. Bookmark the permalink.

Comments are closed.