READ THIS!!!
You all need to know this, so read up.
This is how the real world works. Happy couple buys house. In the particular file I'm working on right now, they paid $467,500.00 for said house (and much land). Well, the people they bought it from did not pay their mortgage. That means the land is going to be taken by the bank and sold to pay off the previous owner's debt. How do the homeowners get their $467,500.00 back? Well, if they neglected to shell out a one-time fee of a measley few hundred dollars for Title Insurance, they don't. They are simply screwed, S.O.L., too bad, so sad, sorry about your luck.
When you buy a home, you will be required to pay for homeowners insurance (insurance against fire, etc...). You will also pay for your lender's Title Insurance, but that only protects the lender. If you do not buy your own title insurance, you can potentially lose your home and every penny you paid for it. Probably half the people I see don't get Title Insurance because nobody understands what it is. Now you know. It is a company insuring that you hold title to your home. If some dude comes along and says "Nuh uh, I have title and his right to the land is invalid", then the title insurance company will either protect you in court, pay off the dude, or pay you for the house.
If you pay $90,000.00 for a house, you'll pay hundreds in closing costs, etc... don't be stupid. Pay the one time fee of a few hundred bucks for title insurance.
That's all I have to say about that. :)
This is how the real world works. Happy couple buys house. In the particular file I'm working on right now, they paid $467,500.00 for said house (and much land). Well, the people they bought it from did not pay their mortgage. That means the land is going to be taken by the bank and sold to pay off the previous owner's debt. How do the homeowners get their $467,500.00 back? Well, if they neglected to shell out a one-time fee of a measley few hundred dollars for Title Insurance, they don't. They are simply screwed, S.O.L., too bad, so sad, sorry about your luck.
When you buy a home, you will be required to pay for homeowners insurance (insurance against fire, etc...). You will also pay for your lender's Title Insurance, but that only protects the lender. If you do not buy your own title insurance, you can potentially lose your home and every penny you paid for it. Probably half the people I see don't get Title Insurance because nobody understands what it is. Now you know. It is a company insuring that you hold title to your home. If some dude comes along and says "Nuh uh, I have title and his right to the land is invalid", then the title insurance company will either protect you in court, pay off the dude, or pay you for the house.
If you pay $90,000.00 for a house, you'll pay hundreds in closing costs, etc... don't be stupid. Pay the one time fee of a few hundred bucks for title insurance.
That's all I have to say about that. :)
posted by TwistedNoggin at 5:39 PM
3 Comments:
It's a worthwhile investment to buy Title Insurance. The house is going to be the biggest purchase you ever make so don't take any chances.
I bought it just for the peace of mind.
Wise choice.
I've never seen title insurance handled by regular insurance companies. Generally, it's companies like First American (one of the biggies) that does nothing but that. It's almost more real-estate than insurance, in a way.
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