Many homebuyers, eager to reduce their expenses during the purchase process, question the need for purchasing owner’s title insurance. After all, the bank’s attorney has already researched the title for the bank, how much risk could there be? However, the recent allegations that the country’s major mortgage lenders improperly processed foreclosure documents, and in some cases, actually forged signatures or made false statements, have demonstrated the value of title insurance.
The foreclosure issue is just one of many potential scenarios which consumers and attorneys cannot identify in advance, and the problem should serve as an incentive for homebuyers to ALWAYS purchase owner’s title insurance. The few hundred dollars spent may not only save thousands in future legal costs, but just might save the buyer’s home.
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