0
A Lender will require a Lenders Title Insurance policy if they are extending credit on a property. The Lenders title insurance policy is based off of the Loan amount that the borrower receives. It will only protect the lenders interest in the property if a problem arises on title.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Which type of title insurance is usually requested by lenders?
Usually a lender will only request a basic Lender title insurance policy. While there is an enhanced lenders policy, the lender usually only requires a basic policy for there protection. The Loan policy is usually based on the dollar amount of your loan. This policy only protects the lender interest in the property if problems arise on title. Because the Lenders policy only protects the lender up to the loan amount that is taken, it is a good idea to look into getting an owners policy to protect the buyer of the property, this policy is based on the purchase price of the property, and will help protect the equity that is built over time.
What is an underwriter?
In general terms, an underwriter is defined as a person who assesses risks to be covered by an insurance policy or a person (as an individual or company) who underwrites a security issue. In title insurance terms, the role of the Underwriter is: (a) The company insuring and issuing the title coverage ie: Chicago Title, Stewart Title, United General Title, First American, Attorneys Title Insurance Fund, etc. and; (b) The person with the local title agency who examines the title searches, county records, etc. in order to create a Title Binder or Title Commitment (intent to insure) for the property. Title insurance is the only type of insurance that is typically "underwritten" at the local level by the title agency. Most other types of insurance providers gather information about a car, person or property and then sends that information to a central office for processing and underwriting. An underwriter can also apply to financial industry as in the bank's underwriter or a securities underwriter.
If you have a mortgage and you tear down the house you had when you got the loan do you have to have insurance until you have rebuild.?
If there is any type of structure on the land it will require insurance..but "raw land" does not require insurance. During to course of construction you will have to carry insurance on the property in case of fire or other hazards. Most lenders want the coverage to be equal to the amount of the loan balance.
What is mortgage life insurance?
Mortgage insurance is mortgage insurance, usually sold to the applicant at the closing of the purchase of a house. At the title company. It has nothing to do with life insurance, per se, because upon death of the insured, the LOAN is paid off. The survivor RECEIVED NO CHECK.Life insurance, on the other hand, has nothing to do with mortgage insurance. Upon death of the insured, the SURVIVOR, not the title company, receives a check for the amount of the death benefit. You cannot find the word mortgage on what is euphemistically called by the agent "MORTAGE LIFE INSURANCE".The same answer applies, in general, to the question what is term life insurance.Mortgage life insuranceMortgage life insurance is a form of decreasing term life insurance. It pays off your mortgage if you die. Mortgage life insurance is often confused with Private Mortgage Insurance (PMI). You buy mortgage life voluntarily to protect your survivors from having to make the monthly payments. But with Private Mortgage Insurance, lenders require you to buy a policy in order to protect them (the lenders) against the possibility that you will default on the debt.Mortgage life insurance is a life insurance policy that one would take out on themselves or another person involved in a mortgage take out on a home or business so that if they should die the mortgage can be paid off. As the amount of the mortgage is paid down the amount of life insurance received is lowered. This type of life insurance will never pay more than the amount of the remaining mortgage.Given the relatively low cost of term life insurance on a healthy person, one might consider buying a decreasing term life insurance policy at the inception of the mortgage, rather than as part of the real estate transaction. The trick is to correlate the period of the decreasing term with the amortization of the mortgage.
Where can one find information regarding adverse mortgage lenders?
One can find information regarding adverse mortgage lenders through the Council of Mortgage Lenders. One may also find this type of information in a newspaper or a mortgage magazine.
Which type of title insurance is usually requested by lenders?
Usually a lender will only request a basic Lender title insurance policy. While there is an enhanced lenders policy, the lender usually only requires a basic policy for there protection. The Loan policy is usually based on the dollar amount of your loan. This policy only protects the lender interest in the property if problems arise on title. Because the Lenders policy only protects the lender up to the loan amount that is taken, it is a good idea to look into getting an owners policy to protect the buyer of the property, this policy is based on the purchase price of the property, and will help protect the equity that is built over time.
Can you buy title insurance?
Title insurance is a specialized type of insurance that is not generally sold by insurance agents. It is usually provided by an attorney and underwritten by a title insurance company who specializes in this type of insurance. The title insurance company relies on statements and work done by the attorney when he does the title search and he has some liability for his work. You can't just decide that you want a title insurance policy anytime. It is usually done when you purchase a piece of property. I suppose that if you wanted to pay for a new title search you may be able to buy a policy at a time other than at closing.
What is the difference between standard title insurance and advantage title insurance for home buyers?
"Advantage" title insurance sounds like a product of a particular Underwriting company. It is not a TYPE of title insurance. Many Underwriters have a "premium" Policy available to consumers that has additional benefits over the standard insurance. Ask your title agent for a side-by-side comparison of the two policies.
What type of insurance do you need in Wisconsin to do vehicle repossession work?
Not sure if Wisconsin requires any special type of insurance, however, most states do have a minimum required limit. Check with your state department of public safety. Also, many lenders won't use you unless you have $1,000,000.00 plus insurance, $1,000,000.00 plus professional liability (wrongful repo insurance). It is NOT a cheap business to get into.
What are the documents involved in a Title insurance company?
The title insurane company searches the title to your property and clears title. They prepare the title commitment, order payoffs, type your settlement statement and fund your loan. They also prepare your deed to be signed at close and record it. Both buyers and sellers must sign their Settlement Statement at the closing. Sellers must sign documents conveying title. Additional documents needed from you can differ depending on you situation. Certain documents become necessary based on marital status, poa, mortgage satisfactions, bank papers from various lenders, judgments and municipal liens.
What is an underwriter?
In general terms, an underwriter is defined as a person who assesses risks to be covered by an insurance policy or a person (as an individual or company) who underwrites a security issue. In title insurance terms, the role of the Underwriter is: (a) The company insuring and issuing the title coverage ie: Chicago Title, Stewart Title, United General Title, First American, Attorneys Title Insurance Fund, etc. and; (b) The person with the local title agency who examines the title searches, county records, etc. in order to create a Title Binder or Title Commitment (intent to insure) for the property. Title insurance is the only type of insurance that is typically "underwritten" at the local level by the title agency. Most other types of insurance providers gather information about a car, person or property and then sends that information to a central office for processing and underwriting. An underwriter can also apply to financial industry as in the bank's underwriter or a securities underwriter.
If you have a mortgage and you tear down the house you had when you got the loan do you have to have insurance until you have rebuild.?
If there is any type of structure on the land it will require insurance..but "raw land" does not require insurance. During to course of construction you will have to carry insurance on the property in case of fire or other hazards. Most lenders want the coverage to be equal to the amount of the loan balance.
How does one start a title insurance company in Indiana?
You create a business entity, filing with the Secretary of State's Office, which cost may vary depending on the type of entity you wish. If you strictly wish to sell title insurance, then you fill out a license application with the Department of Insurance, attend their mandatory training (contact the Indiana Department of Insurance for more info) and pay the required fees. Additional Requirements for title insurance companies may be found under Indiana Code 27-7-3 (Type into Google to find it.), including new laws that were passed in 2008. Most of that section applies to companies wanting to write insurance, but I would read it just the same.
How do you add title in transformice?
type /title and select the title you want. Then type /title (number of title you want).
What is the difference between a title search and title insurance?
The more appropriate term is title examination.A title examination is a comprehensive examination of the public land records to determine the ownership of a property, whether there are any outstanding liens or encumbrances on the property, whether any other entity has rights in the property, and to discover whether there are any issues or defects that need to be resolved prior to the purchase of a property. In order for a person to sell their property they must be able to transfer "marketable title" to a property. Marketable title is free from encumbrances that would cause a reasonable purchaser to not purchase the property. When you purchase a home, a title company or attorney's office will hire a professional to examine the record title to the property to determine whether any issues need to be resolved prior to transferring title. For example, in Massachusetts title examiners are required to research back in the public records for a period of 50 years to look for liens, easements, and problems with the title. Other states have similar requirements.But what if something that was not apparent in a title examination at the time of the purchase surfaces after someone purchases a property? These latent defects in title cost people time, money and potentially the right to use and occupy their home. Title insurance insures exactly this situation.There are two types of title insurance. First, there is lender's title insurance. Lender's title insurance protects the lender's right to title (i.e. a mortgagor's right to first lien position on the property) and is required for most mortgages and loans encumbering real property. As it is protecting a loan the premium amount is based upon the amount of the loan. This type of insurance only protects the lender's interest in the property NOT the homeowner's. If there is a defect in title that is uncovered after a homeowner purchases a home, the lender's policy will not protect their interests.The second type of title insurance is Owner's Title Insurance. This is a policy of title insurance that protects the homeowner's interest in the property. The premium amount is based upon the purchase price of the home. It is a one time fee that protects the homeowner for as long as they own the property. If a problem arises, the title insurance company will pay to defend your right to title or to fix the problem. If the problem cannot be fixed, the title insurance company will pay any monetary losses incurred by the homeowner.Common title problems are: mistakes in registry records or improperly indexed documents, errors on deeds commonly in the parties or descriptions, improperly or un-discharged mortgages, and undisclosed heirs. These problems are real and do occur fairly often.As with any type of insurance there are exceptions to coverage. You should check with a title insurance agent before purchasing a policy and, as always, if you are purchasing real estate you should consult with a real estate attorney prior to putting in an offer.
Can a title company force you to purchase title insurance?
A Title Insurance company cannot force you to purchase an Owner's Title Insurance Policy. However, if you are obtaining a Mortgage or using a Lender for a refinance,then the Lender will require that they are protected by a Lender's Title Insurance Policy, which the borrower will pay for. If you are purchasing a new property, it is usually suggested that you purchase an Owner's Policy at the same time the Lender is being issued a policy. All Title Insurance underwriters offer a Simultaneous Issue price when the Owner's Policy and Lender's Policy are issued at the same time. You may want to shop around, where the State you live in sets the premium for one Policy, the price for the Simultaneous issued policy may vary greatly from Title agent to Title agent. For cash purchases you are not required to purchase Title Insurance, but you will have a very hard time getting a Title Company to close the sale as the most income for Title Companies is the portion of the title insurance premium they get to retain. ("Title Agent" in this answer can be a Real Estate Attorney or Title Inurance Company) = Comment = A title agency may be willing to act as a 3rd party uninterested Settlement/Escrow agent in a cash transaction. It is not uncommon to use a title agency for this service vs an attorney (depending on your standard local practices in your state/county). The title agent will receive funds from the buyer and conduct the signing of documents, disburse all payoffs, pay taxes, etc. and send the documents in for recording. The title agency receives a fee for acting as the settlement agent, but does not guarentee the condition of the property title you are closing in this scenario. In lieu of an Owner's Policy for coverage, you may want at the very least, a Report on Title (Title Opinion in some states), whereas the title agency has done the standard searches on the property and presents it in Report form, without any insurance coverage. This allows the Buyer to know the true condition of the property's title prior to closing and if there have been past issues in deed/title, they may or may not elect to go with an Owner's Policy to protect their interests in the property they are buying. Lenders will always require a Loan Policy on a purchase or 1st lien refinance, and typically on a standard 2nd mortgage. Depending on the amount of a Home Equity Line of Credit (HELOC), they may or may not require coverage on this type of loan.
What type of insurance plans does Harleysville insurance have?
"The type of insurance plans Harleysville insurance have are car and home insurances.
