New Book Touts Benefits of Owner’s Title Insurance
|April 15, 2010|
In her new book, Buy, Close, Move In!, award-winning real estate guru Ilyce Glink offers readers information on how to safely wade back into the housing market. Among her tips is advice to purchase an owner’s title insurance policy.
Here’s an excerpt from her book:
When you purchase property, your lender will require you to buy a lender’s title insurance policy. But unless you also purchase an owner’s title insurance policy, only the lender will be made whole financially if something goes wrong. And there are so many things that can go wrong when it comes to title. Not only can a former owner pop out of the woodwork, but mechanics’ and tax liens can “magically” appear — especially if you’re buying a short sale. Don’t risk it. Order an owner’s title insurance policy when you order the lender’s policy. If you’re buying with cash, don’t forget to order your owner’s policy well in advance of the closing date.
Glink also warns potential homeowners to understand the risks of purchasing a home through foreclosure or short sale. According to Glink’s book:
The housing crisis has produced millions of foreclosures. But it has also spawned millions of homeowners who are “underwater” with their mortgages — that is, who owe more than their homes are worth — and are offering them for sale for less than the mortgage amount. There are some risks involved when you buy a home through one of these so-called “short sales”: The property might have years of deferred maintenance (because if you can’t afford your mortgage, you probably can’t afford to maintain your home either); there may be hidden liens lurking that will cause problems after the closing; and you may have to negotiate with several lenders, which could take months.