Title insurance can be a useful tool for homeowners. It can help them protect their homes and their titles.
Having title insurance is recommended and sometimes required when purchasing a home that’s been foreclosed on. Title insurance can also be useful if you’re purchasing a home that hasn’t been involved in a foreclosure.
Joshua Denbeaux is a New Jersey foreclosure attorney with experience working in foreclosure. Contact us today to learn more about how we may be able to help you navigate the process of getting title insurance and purchasing a foreclosed home.
What Is Title Insurance?
Title insurance protects your ownership of the property. It can also be a defense against mortgage lenders and foreclosure.
These policies are intended to protect homeowners and lenders against loss due to title issues or any legal claims against the property.
How Does Title Insurance Protect Homeowners?
Title insurance companies have an obligation to protect the title of homes they protect in court. Having title insurance can help you if your home goes into foreclosure.
Title insurance gives you protection against defective foreclosures. If the records detailing your title are inaccurate, your title insurance company will help defend you in court. This defense includes errors by previous loan servicers, such as errors in investigative records, falsifications, undisclosed successors, or mistakes and oversights in legalities.
Liens from previous owners could also be an issue. Title insurance protects you from financial liability if lenders with liens from previous owners try to collect on your home.
Getting Title Insurance For a Foreclosed Property
It can be more difficult to get title insurance for a property that’s been foreclosed on.
Buying a real estate-owned (REO) Property is similar to the traditional house-buying process because the home is owned by a lender. However, it may be easier to get title insurance on an REO foreclosure.
Purchasing a court-owned foreclosure property can make it difficult to get title insurance. Court-owned foreclosures are sold in an auction, which means you can’t get insurance before purchasing the home.
Coverage might not be available for homes where there are title issues. Foreclosed properties are more likely to have title issues than non-foreclosure properties, which may make you unable to get title insurance.
Contact a Foreclosure Attorney Today
When facing foreclosure on your home or thinking about buying a foreclosed home, it’s important that you understand everything about the process and how to protect yourself and your home. Title insurance is a good option to help you protect your home title.
A foreclosure attorney can help you understand the process, what all of the terms mean, and how they can impact you.
Contact Denbeaux Law today to learn more about title insurance and ways you can protect your home from foreclosure.
