title insurance policy

2 Replies

what are some insurance policyies? 

what's different for each policy?

what does each insurance policy cover? 

how much does each policy cost?

what is the best insurance policy for residential single family bank owned?

how do i get in contact with these banks who have these bank owned propertyies? 

A title company pulls the title history form the local court house.  They verify that the title has no claim by a 3rd party against it.  ie, a 2nd mortgage took out by the last owner.  In that example,  The 2nd mortgage holder would need to be paid.  Which is bad for you.  

Title insurance is issued by to title company promising the title is free of such claims.  and If they are wrong, they pay, not you up to the policy limit.

what are some insurance policies?

Homeowner's, Title,  Mortgage, Flood, Liability, Unit Owner's Renters... are all different types of insurance policies covering very different things.  You asked about Title Insurance, but from the rest of your questions, I'm not convinced that's your only concern. 

what's different for each policy?

in terms of TITLE Insurance, you can buy a Lender's policy (Usually required by a Lender-- you purchase it for them) 

an OWNER's POLICY (Covers the Owner costs a little more but not a lot) 

a LEASEHOLD POLICY (Usually used in the event of a Ground Lease; consider telecom, solar, and stand alone commercial buildings) 

and ENDORSEMENTS to any of the above. (If you are borrowing on a Construction Loan, there will be Draw Endorsement; If you borrow under an ARM, there will be an ARM Endorsement. If you're buying a condo, there will be a Condo Endorsement. If you're developing a new subdivision, you're probably going to want a Zoning Endorsement.) There are about 50 of these possible endorsements, some are only intended for lenders, some for owners, and some for both; you also sometimes see variations for improved or unimproved land.

what does each insurance policy cover?

See above. 

how much does each policy cost?

Ok, Lender first:  LENDER:  Depends on your state, your situation, and your Agent;  for properties over $1M, you can usually also negotiate.   OWNER'S POLICY all of the above, plus usually a dollar more per thousand (AKA "Mille rate"), plus a "simultaneous issue fee."  ($100-200 or so.)   You only need to pay this once; it's not double the cost or anything.  

Just as a possible example:  f a Lender's policy costs you $2.00 Per thousand (AKA $2000 on a $100k home) then buying BOTH Lender's and Owner's will cost you $3.00/mille + $100 (or $3100.00)  

Endorsements, depending on purpose/type may add to this, but you probably won't have many fees on these in a usual BP "Newbie" residential  transaction.  If you're buying commercial, then that's a different story. 

what is the best insurance policy for residential single family bank owned?

Bank Owned?  You mean, if you were to purchase a bank-owned property?  (a) DEFINITELY BUY an Owner's policy... but (B)"  "Best" depends on how a state/juris treats the Liens that result form the Bank owned property.  Did the bank acquire it by Foreclosure, or was it granted to the bank? Do other liens get wiped out?  Are there taxes? Does a former Owner's heirs come out of nowhere and assert a right over the property?   Too many variables but BUY THE OWNERS POLICY.  

how do i get in contact with these banks who have these bank owned propertyies?

 You need a Broker.  To be honest, this question isn't really relevant to the others in your group. 

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