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How Do I handle Title Problems?
Question: What happens if a title problem is found after I buy a home?
Answer: If you have title insurance, the title insurance company will step in to defend your interests, including all legal costs. If a title problem cannot be resolved, the title insurance company will pay off the mortgage if you have "lenders" coverage. You will lose whatever equity you have in the property. If you have a title problem that cannot be resolved, the title insurance company will pay off the mortgage and your down payment and loan amortization to date. Some title policies have an inflation clause so they will also pay any equity which has resulted from appreciation (higher market value).
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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