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Another Good Reason to Purchase Owner’s Title InsuranceReal Estate
Posted in on March 13, 2014
When purchasing property, there are many reasons to insure the title to your property. Just as you insure your property against a fire or other casualty loss, you need to protect your property against challenges to your rightful ownership. Title insurance protects you against unforeseen defects in the chain of your title such as a deed that may have been forged or signed by an incompetent, insane, or underage person.
Recently, another good reason to insure your property has arisen. With all the bundled mortgage packages that are presently being foreclosed, the necessary assignments to the foreclosing lender don’t show up in time for the actual publication of the sale, which may invalidate the foreclosure and leave a subsequent buyer of Bank Owned property without any title.
In a recent case where the foreclosing bank did not actually have an interest in the mortgage at the time of sale but obtained it at a later date, the foreclosure sale was declared a nullity. In addition, the court stated that this new rule will be applied retroactively. Owner’s Title Insurance would protect you from your loss.
At Baker, Braverman & Barbadoro, we strongly advise buyers to insure your home from all unforeseen defects that may affect the title your property.