|
If you are refinancing and already have title insurance on your home, you will likely need to get a new policy for the new mortgage. This means you can expect to work with a title company when it comes time to close on your refinance loan. Find out why this is and why lenders expect you to be insured in this way. The reason you have to get insurance is to protect the lender, which is why you probably cannot get funding for your house without this step. There are many instances in which a lender could be out of luck and out a lot of money if you are not insured properly. Considering that you are likely getting a loan for hundreds of thousands of dollars for your house, it makes sense for the bank that is loaning you the money to make sure it can get the asset back if you cannot continue making payments. It does this by requiring you to purchase insurance through a title company. The main concern for the bank is that there is a lien on the house. When you owe someone money and you happen to own real estate, that person may be able to place a lien on the property. This means he has a right to take the amount you owe him, even if it means taking the money out of your house. This would keep you from being able to pay the bank back, which is a risk lenders do not want to take. Even if you got insurance on your original loan, you need to get it again for the new mortgage because lenders want to make sure you do not unexpectedly have a lien on the property that was not there before. There are many reasons you might suddenly have a lien. For example, if you do not pay child support, the state could try to get the money you owe out of your home in this way. The same goes if you are sued and there is a judgment against you for any sum that you either refuse to pay or cannot afford right now. Liens can also be brought when you do not pay a contractor for work that was done or you neglect to pay your taxes. Clearly, lenders have a few reasons to request that anyone buying or refinancing get title insurance. This is why you need the help of a title company that can ensure the process is completed correctly. Therefore, you can expect to meet with one leading up to the closing date of your refinance. If you are looking for a reliable Title Company, Ann Arbor is a good place to start looking. If you would like to learn more, visit: http://www.libertytitle.com.
Related Articles -
Title, Company, Ann, Arbor,
| 
