During a New Jersey home purchase, you will most likely have your mortgage or refinance agreement – and definitely not title insurance – on your mind. In fact, you may not even know what title insurance is. As a homebuyer, you need to take out title insurance for protection in case of a home purchase gone wrong.
Home Purchase Gone Wrong
A home purchase can go wrong in many different ways, including issues with the title of the house you are planning to buy. A seller may lack actual ownership of the home, or the seller may have neglected to gain permission to sell the house from a co-owner.
Liens – house possession by a third party due to owner debt – may have been filed against the home.
Your Protection Title issues include many other situations that can cost you in funds or even cost you the whole house. Now, knowing these possibilities, you may be worrying about title issues. Fortunately, you can take out protection against such situation in the form of title insurance.
Title insurance specifically shields you from losses or damage that come from title issues.
Protection in Two Policies
Title insurance comes in two policies that each protects your mortgage lender and yourself. Your lender, when you take out a mortgage loan, will require you to purchase a lender’s title insurance policy for the lender’s protection.
Sometimes your lender will also require you to take out a borrower’s policy for yourself. In the case there was no requirement, you can take out title insurance yourself.
Take Out Title Insurance
You can approach a title agency here in New Jersey, such as towntitle.us, that can help you with a title insurance borrower’s policy. You may have to pay for such a policy. Depending on your locale or state, your seller may pay for your borrower’s policy.
A home purchase can go wrong in many ways, but with title insurance, you will be safe from such trouble. You may win and retain the house, but if you lose it, you get compensation for the mortgage payments you already made.
*Always consult your attorney.