Sevier Title Inc

Description

Why Do You Need Title Insurance? The Loan Policy Doesn't Proctect You. What Danger of Loss Can You Face? How Can There Be a Title Defect If the Title Has Been Searched And a Loan Policy Issued? What Title Insurance Protects Against. What Protection Does Title Insurance Provide Against Defects And Hidden Risks? What This Means to You. To protect possibly the most important investment you'll ever make - the investment in your home. A lender goes to great lengths to minimize the risk of lending you the money you need to buy a home. First, your credit is checked as an indication of you ability to pay back your loan. Then, your lender goes a step further. He or she makes sure that the quality of the title to the property you are about to buy and which you will pledge as security for the loan is satisfactory. The lender does this by obtaining a loan policy of title insurance. The loan policy protects the lender against loss due to unknown title detects. It also protects the lender's interest from certain matters which may exist but not knowable at the time of sale. But this policy only protects the lender's interest. It does not protect you. That's why you need an owner's policy, which can be issued at the same time as the loan policy for a nominal one-time fee. If a lender has title insurance protection and you don't, what possible danger of loss can you face? As an example, let's say you've bought a home for $85,000. You've made a $20,000 down payment, and your lender holds a $65,000 mortgage lien or beneficial interest. Your lender has title insurance coverage protecting his interest up to $65,000. But your $20,000 is not covered. What if some matter arises affecting the past ownership of the property? The title insurance company would only defend and protect the interest of the lender. You would have to assume the financial burden of your own legal defense. If your defense is not successful, the result could be a total loss of title. The title insurance company pays the lender's loss and is entitled to take an assignment of your debt. You are out your down payment, other equity in the property which you have accumlated, and your home. And you still owe the remaining balance on your note. Title insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addtion to matters shown by public records, other title problems may exist that cannot be disclosed in a search.

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