The Importance of Title Insurance
Buying a new home is a journey and no two paths are the same. Some buyers sail through the process without encountering even the slightest wave, while others sometime have to overcome unexpected obstacles, such as a cloud on a title. While many may panic over the discovery of such, there is no need to if you have purchased the all important title insurance.
Title insurance can be perceived as an unnecessary expense, that is, UNTIL YOU NEED IT! Think of title insurance as you do health insurance...you may never use it, but are grateful should the need arise. Below are some important reasons why homeowners need title insurance to protect themselves:
1. Mortgage Fraud - We know. This is a sad thing to face, but in today's economic climate, you can't be too safe. With instances of criminals faking deeds, title insurance can be your best line of defense in protecting what is rightfully yours.
2. Home Builders Financial Crisis - As many home builders find themselves in the red, some are resorting to unethical practices such as knowingly selling homes that have liens on them. If you didn't purchase title insurance, you could be on the hook!
3. Foreclosure Mistakes - Yes, buying a foreclosure can be a fabulous deal for any home buyer...except when banks make mistakes. There have been instances where the courts have ruled that the bank AND the new home owner are responsible for improperly transferred mortgages and thus the home reverted to the seller who was in financial trouble to begin with. Had title insurance been purchased, financial loss may have been prevented.
As you can see, title insurance can be your best investment when buying a home!
Thinking about buying in the Loudoun County Real Estate market and have questions about title insurance or other home buying procedures? Contact the EXPERTS at Ask Gina & Company and let us unlock the possibilities!
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