Lender’s Title Insurance

Lenders Title Insurance in Florida

When purchasing a home or other real estate lots, the lender requires the Lender’s Title Insurance policy. Lender’s Title Insurance is used to protect your lender against the problems with the title to your property such as someone with a legal claim against your home, you are the first person responsible. However, it protects your investment in the property. To cover your investment, you may have to purchase, the Owner’s Title Insurance policy.

Most lenders will not approve a buyer for a mortgage unless they purchase the Lender’s Title Insurance. When buying a home or other real property, a number of problems or defects may arise with the title. The most Common Problems include the contractors who were not paid for the work done to the home prior to its sale and the real estate taxes that were unpaid by the previous owner.

When these problems arise, the Lender’s Title Insurance covers the lender’s investment. The Lenders recognize that numerous factors can lead to the claims against the title, and they are all too aware of the extensive costs that can be incurred when defending an attack on the title. When the buyer purchases the Title Insurance, but, the title company agrees to defend the lender in court and it covers any and all costs incurred.

Lender’s Title Insurance for Loans

Once a lender buys a loan, they immediately sell it to the secondary market investors. In order to protect its security interest in the loan, these secondary investors ensure that the loan has the Lender’s Title Insurance. The lenders are protecting their investment against title-related defects. A Lender’s Title Policy expires when the loan is paid off.


Purchasing Lender’s Title Insurance

Purchasing the Lender’s Title Insurance is the buyer’s responsibility, even though the Lender’s Title Insurance only protects the lender and not the buyer. Still, buyers are presented with an opportunity to purchase, the Owner’s Title Insurance at the closing. Purchasing an Owner’s Title Policy ensures that the buyer will also be covered in the event of any problems that may arise.

Yet, purchasing a Lender’s Title Insurance is a necessity for those who need a mortgage to purchase a home or other real estate plots. It is an additional cost, but it cannot be avoided in most situations. If your mortgage company is requiring you to purchase a loan policy, then Independence Title Inc can help you. Contact us today!


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