Title Insurance / Owner's Policy?

Question

Hi,

I am in the process of re-financing my mortgage on the property that I have bought two years ago. I have received the below email from the re-financing company. I see in HUD statement that we have Title Insurance at the time of closing. Also, title search has been done. Is the title insurance different from Owner's policy? How bad is this?

FYI, I have had a lawyer, RE agent when I bought this property.

Also, please let me know what kind of insurance should I be taking going forward? Thanks for all your help.

We are trying to clear the first mortgage from title but the property was owned by PREVIOUSOWNER. Can you please find out if CURRENT OWNER(myself) purchased an owner's policy at the time they purchased the property from PREVIOUS OWNER. If they did purchase the policy we will need a copy of it.

Answer 1

Owners policy is normally purchased at the purchase of the home to protect the owner (in this it sounds like you) from issues that "cloud" a mortgage, like a lien, judgment or mortgage from previous owners or other parties. An owners policy can also be known as an abstract of title in some states. By providing the owners policy to the title company you are using to refinance there is typically some savings to that cost as it is actually underwritten by one of probably 4 title insurance underwriter like Attorneys Title. Your owners policy will insure you against that other mortgage from effecting your title by filing a claim so that is why they need it.

The title insurance for the new loan is the typically lender policy, they search back through records from last closing to the new closing to insure no new or unrecorded, liens, judgments the homeowner might not even know off.

Here is a website that may help. Good luck

Answer 2

if you had title insurance it will be noted in your closing papers from the original closing two years ago.

Title insurance is insurance you purchase to make sure the title is clear and and documentation has been done before you purchased

Owner's policy  I am guessing is your home insurance that protects you from damage windstorm, rain, broken pipes etc. has nothing to do with title insurance.

Contact the lawyer you used fo r this transaction - since you paid for his services he should answer this question without charge.

Answer 3

Title insurance is different from homeowners insurance, which is what I assume you mean when you say "owner's policy".  

No one here can look at your purchasing documents to see if you have title insurance and/or homeowners insurance.  If you did, YOU purchased it.  If it wasn't purchased in YOUR name, YOU do not have it.  It doesn't transfer with ownership.