Lender & Mortgage Protection
Premier Reputation Title Provides Lender & Mortgage Protection Services
SW Florida’s Most Respected Residential and Commercial Title Professionals
Are you getting ready to purchase your dream home?
Are you looking for a better rate to refinance the property you currently own?
If you are working with a lender, then you need to be prepared to purchase a lender's title insurance property.
Title Insurance: The Lender’s Policy
Nearly all mortgage companies will require a lender's or mortgagee's title insurance policy at the closing. This extra layer of protection means that if your real estate investment turns out to be a bit flawed, the lender won't have to worry. Here's what we mean:
Property changes hands a lot which which is why the investment in a title search is such an essential part of homebuying. This gives confirmation that the property is free and clear to pass on to the new owner. If there were any judgments, liens, encumbrances, outstanding heirs, and so forth, it would show up on the title search.
Unless there is an error.
Sometimes documents or liens are not recorded properly. Or sometimes a will was in place that wasn't found in official records. Whatever the reason, if it is missed on a title search, your new ownership of the property does not necessarily supersede anything. You may now be responsible for the outstanding judgment since it was attached to the property as it moved into your possession. Or you may have to fight against the rightful owner if one comes forward.
Your lender wants no part in any of this. That's why they want to be protected.
Hidden Title Defects
Curious what all a title search can miss that has your lender so persistent about title insurance?
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Forged documents, such as deeds, releases, and wills
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Liens for unpaid taxes
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Fraudulent activity
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Deed executed using an invalid or expired power of attorney
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Undisclosed or missing heirs, estranged spouses
Your Lender Wants to Be in First Lien Position
Your lender wants their lien position secured. They want the confidence that when you go to sell the property, they are first in line for payment. But if something goes wrong in the title search, their position could be affected. And this jeopardizes everything.
This is where title insurance comes in. It insures the lender against anything that was missed during the title search. And keeps them right there in the first lien position against your property.
Frequently Asked Questions
How long does a lender’s title insurance policy last?
Lender’s policies don’t last forever. They are designed to cover the amount of the loan. So as the loan decreases, so will the value of the lender’s policy. And, once the mortgage is satisfied, the lender’s policy will no longer be in place.
Why is it necessary to have a lender’s policy on a refinance?
The title insurance policy you bought when you initially bought your property is technically getting paid off when you refinance. That loan disappears (and so does the title policy) and the new loan is going to take effect.
Mortgage companies will require a new lender's policy that will protect them for the new amount and from the date of the new loan.
How much does it cost?
The cost of a lender’s title insurance policy will vary based on the value of your property.
Still have questions? Speak to the title experts at Premier Reputation Title. Call (239) 947-7007.