QandAs: Loans

What is Title Insurance?

Answer:
Nearly all mortgage lenders require title insurance.

It protects them against financial loss caused by problems with your home’s title, like an improperly recorded mortgage or a past lien that was never paid off. Such defects could cause your lender to lose a great deal of money in the event of foreclosure.

Title insurance would cover the mortgage lenders loss. The borrower typically pays the insurance premium at closing out of the loan proceeds. It’s important to remember that this insurance protects your lender, not you.

A separate owner’s policy must be purchased if you wish to be protected as well.


	more Q&A sessions like this
	Can I Refinance my Mortgage if my Home is in Foreclosure? What does a title company do? Where can I find a local Mortgage Loan Specialist? What is a Title Search? What is a Tax Lien? What are Closing Costs? What is a Sub Prime Mortgage? What is a Sub Prime Borrower? What are some possible fees associated with a Home Equity Loan? Will my Credit affect my Car Loan? What is a bad credit car loan? What is Foreclosure Fraud? What is Defalcation? Where can I find foreclosures? What is a Home Title?