Noteholder asks about the TITLE. What about it? - Posted by Hasina

Posted by Hasina on June 15, 2006 at 04:04:22:


Thanks for responding. Ok, at first when he mentioned title I immediately thought he was referring to his (the owner’s) title. So, I should tell him that I will cover the cost to obtain a copy of the Mortgagee/Loan title ins. pol.? I purchased someone’s kit on RDalbey and I don’t recall the materials discussing titles. Maybe I need to re-read because I might have skipped over or something. I appreciate you giving me a heads up on this and explaining it to me.

Thanks again,

Noteholder asks about the TITLE. What about it? - Posted by Hasina

Posted by Hasina on June 13, 2006 at 02:43:12:

They asked me, "you want to sell my note, and what about the title? What rate were you thinking of?

1st Qn’s Answer: I desire to help you sell your note, rather than selling it.

2nd Qn’s Answer: …? I don’t know.

3rd Qn’s Answer: I would need additional information about your note to determine the rate.

The 2nd Qn is where I’m mostly stumped at. The last question did I answer it correctly?

Thanks & Prosperous Regards,

TITLE. What about it? - Posted by Michael Morrongiello

Posted by Michael Morrongiello on June 14, 2006 at 22:33:47:

When we purchase a seller held mortgage (or Trust Deed) we typically require that the Mortgage be an insurable mortgage with a commitment for a mortgagee/lenders title insurance policy to be issued. Don’;t confust LENDERS title insurance coverage with OWNERS title insurance coverage. They are (2) two different types of title insurance policies and they insure different things.

The Mortgagee / loan title policy is insuring the validity of the mortgage lien against the specific real estate legal description and if its represented to be a bonafide 1st lien or priority lien -then insuring the lien as a priority lien with no exceptions to the title except as may be noted. The policy is also insuring against fraud, and other potential claims to the mortgage lien as well.

The cost (Premium) to obtain such a Mortgagee / Loan title insurance policy is based upon the amount of the debt that is oustanding on the Note.

I believe your question surrounds this type of title insurance and this is the what is referrewd to when we say we much check title…

Michael Morrongiello