[Dr Winston O Boogie jr]

Originally Posted by graciegirl

Real Estate Law differs from state to state. But if you have a mortgage, the lender really dictates whether you seek clear title, and they should because in essence they own your home and they didn't seek to buy it, you did and you are asking them to borrow their money.


I would NEVER ever pass on getting Title Insurance on a resale, anywhere, ever and from any other entity, even if I were paying cash. And I am not promoting anyone else doing what we did.

I think that you might have missed the point on two types of title insurance. One that covers the lender is mandatory. In my case, the fee is $25.00. The second type covers the homeowner. In my case it's $1005.

Technically, by law, the lender does not own the home. They have lent you the money to buy it and the buyer legally owns the home. The lender has the right to try to take possession of the property if the buyer defaults on the mortgage. But, they do not own the property. Foreclosure is a long legal process. You basically put up the home that you own as collateral.