Your Questions About Title Insurance

Robert asks…

Do i need title insurance if buying a home with cash?

There will be no mortgage on the house. What does title insurance protect me from?

barry0912 answers:

Yes you would want and need title insurance on any real estate purchase even if you are paying all cash for the property.

This title insurance would ensure that there are no liens on the property prior to you assuming ownership. Failure on your part to obtain title insurance you might have many unknown liens on the property that if you decided to refinance or sell the property would have to be paid prior to you selling or getting a refinance.

The title police guarantee that you are receiving a clear title without any other encumbrances.

I hope this has been of some benefit to you, good luck.

“FIGHT ON”

Richard asks…

Do you really need title insurance on a foreclosed house?

For example HUD recommends that a buyer of the HUD foreclose gets a title insurance. Why? Isn’t that redundant?

Also, I know some lenders that require buyers to get a title insurance on a government foreclosure.
I understand that on bank foreclosure it is necessary to have title insurance. But why on a government foreclosure? My understanding was that all the lens are dropped when you buy a government foreclosure.

barry0912 answers:

Title insurance is more important on a foreclosed home than any other. There are numerous title insurance problems that can be associated with a foreclosure. I have seen many, many incorrect legal descriptions in foreclosures; creditors (thus lienholders) omitted from the foreclosure process; and even on one occasion the entirely wrong property was foreclosed. In order to save the most money you should ask for the re-issue rate if that is possible. HUD just purchased a policy of title insurance on the property in question, you may want to go back to that title insurance company for your policy.

Powered by Yahoo! Answers

Leave a Reply

Your email address will not be published. Required fields are marked *