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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Does Title Insurance help? Posted by Mark H. on May 10, 2010 at 4:45 PM In Reply to: Does Title Insurance help? posted by Rick Harmon on May 10, 2010 at 3:55 PM : Here's the deal: If you were going to buy an existing note from it's current bene by way of assignment, they should have a policy along with the nesseary endorsement as an assignee, if applicable. : If the subsequent bene(s) had lender's policies insuring THEIR respective loans, insurance would be the industry norm. : Understand that their policy(ies) would work off prior policy 'starters' which is industry term for a courtesy indemnification by prior title insurors that subsequent companies use as a starting point, and use the newer policies to insure forward and up to the time of the policy being purchased. But I'm not sure that you're even talking about buying a loan from a lender : However, if you're talking about bidding the property at the t-sale, you won't be getting any benefit of the foreclosing lender's insurance, let alone any reference or assurance of the lien position that you're buying. You're a professional and are expected to do your own research and due diligence regarding title, lien position, collateral value, etc. That's why all the disclaimer language on the Notice of Sale. : As I am unclear on how title insurance works, I am not sure who insures, for what purposes. Start with the assumption that the deed of trust in foreclosure was bought at the foreclosure auction. I assume that the trustee "insures" that the title is clear, and if an old lein pops up then it is the trustee's insurance that pays the lein to clear title. Presumably the insurance covers against the trustee being sued for a poor title search. If the deed of trust states, in the body of the text, that it is a first deed of trust then I don't see how an "as is" clause at sale is going to help. Also, someone suggested to me that if this happens we ought to run the title through the title company that orginally issued the 'insured' title. This may help? Follow Ups: What will help you... Rick Harmon 3:02 PM, 05/11/10 (2) Re: What will help you... Mark H. 6:51 PM, 05/11/10 (1) Re: What will help you... IE Brian 10:28 AM, 05/12/10 (0) Re: Does Title Insurance help? LA in LA 0:41 AM, 05/11/10 (1) Re: Does Title Insurance help? IE Brian 10:44 AM, 05/11/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Here's the deal: If you were going to buy an existing note from it's current bene by way of assignment, they should have a policy along with the nesseary endorsement as an assignee, if applicable. : : If the subsequent bene(s) had lender's policies insuring THEIR respective loans, insurance would be the industry norm. : : Understand that their policy(ies) would work off prior policy 'starters' which is industry term for a courtesy indemnification by prior title insurors that subsequent companies use as a starting point, and use the newer policies to insure forward and up to the time of the policy being purchased. But I'm not sure that you're even talking about buying a loan from a lender : : However, if you're talking about bidding the property at the t-sale, you won't be getting any benefit of the foreclosing lender's insurance, let alone any reference or assurance of the lien position that you're buying. You're a professional and are expected to do your own research and due diligence regarding title, lien position, collateral value, etc. That's why all the disclaimer language on the Notice of Sale. : : : As I am unclear on how title insurance works, I am not sure who insures, for what purposes. : Start with the assumption that the deed of trust in foreclosure was bought at the foreclosure auction. : I assume that the trustee "insures" that the title is clear, and if an old lein pops up then it is the trustee's insurance that pays the lein to clear title. Presumably the insurance covers against the trustee being sued for a poor title search. : If the deed of trust states, in the body of the text, that it is a first deed of trust then I don't see how an "as is" clause at sale is going to help. : Also, someone suggested to me that if this happens we ought to run the title through the title company that orginally issued the 'insured' title. This may help? [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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