What does Bancstar Title do in a refinance?
When a homeowner refinances, a new lender requires that their new loan, whichever is secured by your property, by the first loan “in line” an that any existing loans or other liens on the property be cleared before the new loan is established. The lender almost always requires the borrower purchases a lender ‘s title insure policy on it’s behalf to ensure that this happens. At BancStar Title, LLC, our experts conduct a thorough title examination of your property to determine what, if any existing liens exist on your property, work with the lien holders to clear the existing liens either prior to or as part of the refinance transaction, work with the new lender to ensure that all of its loan requirements are antis field, conduct the settlement for the refinance, and issue a title insurance policy to the new lender insuring that its loan is in first position.
What kinds of problems can a title search reveal?
A title search can show a number of title defects and liens, as well as other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against the current or prior owner, and restrictions limiting the use of the land.
What is title insurance?
There are two types of title insurance. One type of policy covers the lender. The other policy type covers the owner. The Lender’s policy is a separate policy which protects the lender’s interest in the property, up to the outstanding balance of the buyer’s mortgage. The Lender requires that the buyer purchase a Title Insurance Policy on behalf of the Lender. The loan policy protects the lender against loss due to unknown title defects. This policy protects only the lender’s interest; it does not protect the buyer. The Owner’s policy protects against loss due to any of the problems mentioned above. Even a “hidden hazard” can result in a claim against your ownership. The Enhanced Owner’s coverage includes coverage for zoning, subdivision, building permit and encroachment issues, as well as the coverage for certain post-policy matters such as theft of identity, forgery, and neighbor encroachment. Owner’s coverage provides for legal defense and any liability or loss that may arise. The Enhanced coverage also allows for increase in coverage as the property values increase, up to 125% of the policy coverage.
How does title insurance protect my investment if a claim should arise?
If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense – plus pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of your policy.
Am I required to purchase title insurance?
Most lenders will require that you purchase a lender’s title Insurance policy. This protects their investments in your property. You are not required to purchase an owner’s policy; however, your one-time payment will protect your property for as long as you own it.
When will I know how much money I need for settlement?
As soon as figures are available from the lender, we will be in a position to prepare a final closing statement (“HUD”-1). Typically, this will be a day or two prior to closing. If the final settlement figures are not available in time for you to get certified funds from the bank, then go with the good faith estimate provided by your lender.