Okay, so you didn’t set out to become an insurance expert – all you wanted to do was buy a house, after all. Yet, in the process, you ran up against at least four different types of insurance – and these are just the mandatory policies.
We are willing to bet that you never dreamed you would learn so much about insurance as you have during the home-buying process. From P.M.I to hazard insurance EVERYONE has their hand out, wanting to make sure their interests are covered. That is why researching the best types of insurance is worth your time.
Think title insurance is frivolous?
A Utah couple put their home on the market and quickly found a buyer. Escrow was opened and the title search was ordered. During the process, the title company discovered a lien against the property, which happens frequently. What happened in this case is when the homeowners originally bought the home, the sellers lent them some money for the purchase. This loan created a lien against the property.
The escrow company contacted the original homeowners (the originators of the loan) and informed them that the folks they lent the money to were selling the home and, thus, paying off the loan. The lien could be removed, right?
When dealing with reasonable people the answer would be yes. Unfortunately, the original homeowners turned out to be quite disagreeable and refused to take the payment in full for the money they lent. They offered no explanation.