Title insurance companies don’t always get it right. When they don’t, there are title problems. Title problems can include missing or false documents and documents filled out incorrectly. Title problems need to be cleared up before a home’s closing. Learn about some common title problems here and how you can protect yourself.
Title insurance protects you and your property. A title insurance company runs a title search before issuing a policy. A title search means looking at public records relating to your property and tracing the chain of ownership. What documents are included in a title search?
Can a lender foreclose on a home before a deed in lieu of foreclosure can be finalized? A title search can delay a deed in lieu of foreclosure process. In addition, whatever the title company finds during the title search can affect the deed in lieu of foreclosure. How does having a name on a title but not a mortgage loan affect a title search? Another reason a deed in lieu of foreclosure may be delayed is that lenders are swamped with similar situations.
A divorced man still has his name on the title of a home with his ex-wife who now can't afford the mortgage. While he's not liable for the financial end, if the bank forecloses on the home and sells it at a discount, his equity could disappear. If the man can afford the mortgage, he might want to step in to save his interest in the home.
Unlike for cars, states do not issues titles for property. The title you received when you bought your home proves that you own it, no matter whether it's a warranty deed, special warranty deed, trustee's deed or quit claim deed. When you pay off your mortgage you own your home in full and your lender removes its lien on your property.
Title transfer can be done through a quitclaim deed. As long as there is no mortgage on the property, the original property owner can simply execute a quit claim deed listing someone else as the owner of the property. But it's a different story if there is still a mortgage on the property. If there is a mortgage, the original property owner will want the new owner to refinance the mortgage before transferring the title.
A homeowner has changed her name and would like the new name reflected on the title to her home. The name change will be confirmed at the time of sale and there is no need to change it on the title.
When you buy a home, it's the title company's job to find easements during the title search process. What can you do if the title company does not disclose an easement? Easements may include landscaping issues and could affect the way you manage your property. Can you win a lawsuit over an easement?
When your spouse passes away and the title to your home has the name of another individual on it, what can you do? One option is to offer to buy out the other party whose name is on the title to the home. Another option is to hire an estate attorney to resolve title problems.
A homeowners has transferred the right to buy a property to a second party who in turn transferred it to a third party. There are certain legalities that must take place to insure that the paperwork is just right to make sure that title runs from the bank to the third buyer. The homeowner should try to get the bank to authorize the closing agent to transfer title to the third buyer