Resale purchase still had a mortgage on it....

[Holly’sMom]

I am a forgiving person, but the "mistakes happen posts", are surprisingly forgiving, even for me! The title search is as important as closing the transaction and making sure the new deed is recorded. Completely unacceptable to make an error of this magnitude. The only excuse would be if the mortgage lien was not properly recorded. It would really be helpful to get the name of the title company, as I would want to steer clear of them.

 

[Holly’sMom]

I used to work for a title insurance company. Title insurance is not a guarantee that your title is perfect, it is insurance that, if there was an error, you will receive coverage for the error. In life, perfection is impossible. It sounds like the seller owned multiple DVC deeds, which can make the title search more challenging. The great news is that the title company took immediate action and the buyer was covered. Based upon the information provided, the title company did a good job.

 

[BWV Dreamin]

Question. Now that the Title insurance has processed a “claim”, is it still in place for any future claims or is this a one and done situation?

 

[Holly’sMom]

Question. Now that the Title insurance has processed a “claim”, is it still in place for any future claims or is this a one and done situation?

 

[BWV Dreamin]

Don’t see your reply......

 

[Holly’sMom]

Your owner’s policy remains in effect for as long as you own the DVC property or convey it with warranties of title. People that take title upon your death are also covered by the policy (must be heirs). The only change is that the amount of the policy may be reduced by the amount paid to clear up the defect.

 

[BWV Dreamin]

Your owner’s policy remains in effect for as long as you own the DVC property or convey it with warranties of title. People that take title upon your death are also covered by the policy (must be heirs). The only change is that the amount of the policy may be reduced by the amount paid to clear up the defect.

Interesting. So if said mortgage cost $20,000 to pay off via the title insurance , the remaining coverage amount would be reduced by that amount? I cant remember what the typical title insurance coverage amount is ? How about title transfers through Trusts?

 

[Holly’sMom]

Interesting. So if said mortgage cost $20,000 to pay off via the title insurance , the remaining coverage amount would be reduced by that amount? I cant remember what the typical title insurance coverage amount is ? How about title transfers through Trusts?

Yes, the original coverage amount would be reduced by $20,000. Coverage usually follows the value of the property at the time of purchase. Depends on the circumstances of the transaction.

 

[we"reofftoneverland]

How much was left on the mortgage?