Factors that Need to Know About Mortgage Title Search Process?
A title is a legal documentation including the specifications like who is purchasing the property and who owns it in the form of a deed. For buying any property, one of the steps is to have a title search. This process which comes under Mortgage Title Search Process is done to ensure that the title is clear.
Earlier most of the property purchases come up with issues related to a title search. Although many of them could be easily resolved. Today, it is widely seen that the title search process is given to mortgage outsourcing companies. But while giving to any mortgage outsourcing company ensure that the below factors are considered in the title search process.
Factors that You Need to Know About Mortgage Title Search Process
1. Getting a Title Insurance
Once you are in a contract on a property, the first thing you have to do is to get title insurance. There are two policies required:
- Owners title insurance protects the buyer and
- Lenders title insurance protects the lender.
When being in the process of purchasing a property, a BPO mortgage company would check the ownership history of the property. But, your new property would have a clear title. This means that the current owner of the property who is selling to you would have the complete ownership stake on the property with no legal form of claims. Claims could be in the form of lien from the lender or tax.
If the BPO mortgage company, does not find any title defects or claims, then the question arises why title insurance is required? This is required because any form of undiscovered issue could pop up after years of purchase.
Lenders usually insist on title insurance, to protect their interest in the loan.
2. Prior Claim to the Title
Title Claim involves any action or claim for losses that arise out resulting from any inaccuracy in the title. Usually, a title investigator looks for the title claims that affect your purchase. The search includes public and lands records.
Most of the title searches come up with a problem. Some of them are:
- A contractor was not paid for work completed
- The previous owner failed to pay taxes
- Undisclosed owners and conflicting wills
- Omissions or Mistakes in deeds
3. Resolve Title Issues
If you find the seller of your property you wish to buy has ownership with another party, all the owners must sign the Document Digitization before the sale process is done. Before achieving a clear title, issues related to taxes or other judgments must be resolved.
Always the seller has the responsibility in resolving the issues related to the title. One must review documents that provide information about any restrictions, right of way to use a property, or any information about easements.
The below three documents could solve many of the title issues. They are:
- Deed of Reconveyance: It records the payment of a mortgage under a deed of trust.
- Release of Lien: It removes a paid mortgage or spouse or child support lien.
- Quit Claim: It removes an heir and clears the title among spouses or co-owners.
4. Next, What to do with the title?
Once, the issues related to the title are resolved, the next thing is what to do with the title. Being the owner of your property, now it’s time to place your title in a safe place like a bank.
5. When you sell your property, what happens to the title?
Once the property is sold by you, the title once you owned would be given to the buyer. The buyer receives a copy of the title, once the closing on the property is done. Now the new owner will have right on the property and you have no claim on it.
6. What can be done once the title is lost
Once the title is lost, there is nothing to be worried about. Just go to the government clerk’s office near your property and buy a copy of the document. Or else, if you had a mortgage on the property, you could buy a copy of the file from the banker.
There are many steps involved in the title search mortgage services. They are a chain of title, tax search, inspection, name and judgment search, and closing. By following these steps, you can ensure a clear title free from claims or defects.
Scanning and Indexing provide you with services related to the mortgage title search process. To get more information about our offshore mortgage services, please contact us at email@example.com