Buying a home is a steep investment. And, as every buyer knows, the closing process can be pretty overwhelming, so you’ll be forgiven for not noticing one of the line items: title insurance. Never heard of it? You’re not alone.
If you’re getting a mortgage, the bank will require you to get both an owner’s policy and a lender’s policy. One protects you as the owner; the other protects the lender because its loan is secured by the house. The agency issuing the policy will perform a title search on the property, going over the county land records to verify that the seller is the true owner and that no liens exist. If a problem arises, it must be fixed by closing.
But if someone misses something along the way–there is a lien or long-lost heir or forged document–your title insurance policy will reimburse you for any loss…
View original post 117 more words