Rather than brushing off title insurance as a means for a lender to bleed more money out of you, it would be better to take the time to learn more about title insurance and how exactly this can benefit you.
Title insurance is a means to protect the lender against claims or any legal issues tied to the property that you want to buy. Even if a deed search was done to find these exact problems, there have been several instances of problems being missed due to being misplaced or filed improperly.
Here’s a real life example:
Someone shows up saying that they are the real owner of the property. He makes a claim and takes you to court, if they can show evidence backing up their claim, then it would be declared that the property was sold through fraud. This leaves you homeless and with several legal problems should the court take their side.
Your lender will be taking a big loss on his investment and you will have massive financial problems as you have just spent a lot of money purchasing a property you can’t legally own.
Needless to say, nobody wants to have to deal with a problem like that. It’s stressful, embarrassing, financially devastating, and it will have a massive impact on your family. You’d need to find a new place to stay in short notice. Instead of raising a new family in your new home, you now have to deal with a nightmare situation.
Title insurance is valuable as it protects you from that very scenario or other problems connected with the title for the years to come. What you have to consider is that issues with the title can pop up at any given time, even past a title search. Even after staying in a home for over 10 years, there is the possibility that you could be evicted if a problem on your tile turns up.
So no matter how much you are willing to spend for your new home or how good your credit score is, you’ll find it close to impossible to find a lender who will proceed to closing until they approve the title insurance policy you choose. The closing process in most real estate transactions are long enough as it is and it can drag on for even longer if you take your time with finding good title insurance.
Save up some money for title insurance before you purchase your home, delays during the closing process can lead to bigger costs and title insurance is definitely something you will want to invest in to keep you and your family protected.
Robert Aronov & Associates, PC 88-02 136th St, Jamaica, NY 11418 (718) 206-1555 http://www.realestatelawyernys.com