Can I get title insurance when closing with a wrap around morgage?

Question

Hi All,

I was recently informed that I cannot obtain title insurance when closing on a property using seller financing in the form of a wrap around mortgage. Can anyone here shed some light on this for me?

Thank you in advance!

Best,

John

Tom Gimer · Answer

I had to dig deep for that. Not sure about VA but it would not surprise me if similar guidance exists.

Wayne Brooks · Answer

@John D. I would think you could, with the underlying mtg being an exception, of course.

@Tom Gimer??

John D. · Answer

Thanks @Tom Gimer and @Wayne Brooks for the help here!

John D. · Answer

Ah I see. Thanks Eliott. So with a traditional mortgage I can still get title insurance?

Also, is there any particular reason that I cannot get the title insurance if I am wrapping an FHA loan for example? Why will the insurance companies not provide it?

Thank you!

Eliott Elias · Answer

This is correct for a FHA, HELOC, & VA loan.

Can I get title insurance when closing with a wrap around morgage?

Can I get title insurance when closing with a wrap around morgage?

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