Legacy Title Company Blog
Recently, we have received numerous inquiries pertaining to title insurance coverage. Please refer to the information listed below from the Department of Insurance that explains title insurance coverage areas in more detail.
- Protection from financial loss (up to the face amount of the policy) due to covered claims against your title;
- Payment of legal costs to defend against covered claims;
- Payment of successful claims against your title (up to the face amount of the policy).
Read your title insurance policy carefully and note possible exclusions and exceptions, which may include:
- An unrecorded title defect you knew about;
- Condemned land;
- Building and zoning ordinance violations;
- Payments required (except for legal access rights) because your deed failed to provide rights of use to adjacent land, streets, alleys or waterways;
- Conveyance of title irregularities arising from a deceased person's estate, a bankruptcy estate or trust;
- Restrictive covenants limiting your use of the property;
- Discrepancies, conflicts or shortages in area, boundary lines, encroachments, protrusions or overlapping improvements;
- Right of usage claims arising if your property is on or near a body of water, river or stream; or,
- Renter or adverse possession claims from "parties in possession" of all or a portion of your property.
A federal program was established to help borrowers that owe more on their mortgages than the home is worth......HARP. The program is limited to mortgages that were sold to Fannie or Freddie on or before May 31, 2009. If your loan was made after that date, then you are not eligible.
A few things to consider about HARP:
1. You do not have to upside-down on your mortgage to be eligible for HARP refinancing. The program is open to borrowers with loan-to-value of 80% or more.
2. To be eligible, you must first ask your lender. However, one of the requirmements is not missing a payment in the last few years.
HARP allows lenders to orginate a new loan with an interest reate about 0.25 percentage point above the market rate.
If a HARP loan fits your needs, please consider requesting Legacy Title Company, LLC to assist you with the closing process.
As a result of the economy the last few years, hardworking people have lost their jobs and got behind on their mortgage. Recently, new guidelines have been established to assist homeowners with the approval of a "short sale"-which is the homeowner selling the house for less than the value of the mortgage. Until recently, the banks have been the controlling factor for the approval of the "short sale".
New guidelines have been established to help streamline the process to homeowners whose mortgages are backed by Fannie Mae or Freddie Mac. Please refer to the following links to see if you fall into the category if you choose the "short sale" route.
Please contact Legacy Title Company with any assistance we can provide to help during this process.
This is a great time to refinance or purchase a home, because the average rate on a 15-year fixed mortgage has fallen to its lowest level in decades.
The rate for the popular refinancing option dropped to 3.54 percent from 3.66 percent the previous week. That's lowest average rate since the mortgage buyer began tracking it in 1991.
Please contact Legacy Title Company, LLC to assist you with a smooth closing process with your refinance or purchase!
The Making Home Affordable (MHA) Program is part of the Obama Administration's effort to help homeowners avoid foreclosure. MHA is an official program of the Departments of the Treasury & Housing and Urban Development. This program includes opportunities for homeowners that qualify to modify or refinance their mortgage to make their payments more affordable.
Amidst growing criticism from both Republicans and Democrats, the Obama Administration has launched a campaign to preserve as much of the foreclosure prevention aid provided to the MHA Program as possible.
Learn more with an article from Businessweek: Treasury, HUD Lobby to Save Foreclosure Prevention Programs - BusinessWeek | March 3, 2011