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Personal Finances / Buying or Selling a Home
|Subject: Re: Escrow items during refi||Date: 1/25/2013 5:04 PM|
|Author: JAFO31||Number: 124604 of 127939|
<<<Because the loan that the old insurance policy insured will be gone.
The new policy will insure the new loan. And pays for them to do a new title search, since the title company have to make sure that you don't have some new lien against the property that was put there between when your old title search was done and now.>>>
"I can see paying for the new title search. I guess I assumed the title insurance policy could "transfer" from one loan to another since nothing has changed regarding the property, owners, etc. Oh well."
Title policies are as of a certain date (unless downdated by endorsement), and insure a particular person or persons, and in the case of loans, insure a particular mortgage or deed of trust.
If you new lender were taking an assignment of the existing note and lien and then modifying it for the new loan terms, the old mortgaeg or deed of trust will be released and the lender's policy is insuraing something that no longer exists (IOW, it provdes no coverage).
And there are several reasons why most lenders are not interested in a note prucahse and modifcation program; in addition, you will still need to buy several title insurance endorsements and it may not dave you any money.
Yes, I am a lawyer, BUT THIS IS NOT LEGAL ADVICE; it is only general information. NO CLIENT RELATIONSHIP IS INTENDED TO BE CREATED, NOR IS ANY SUCH RELATIONSHIP SO CREATED. FOR SPECIFIC LEGAL ADVICE YOU SHOULD TALK TO A LAWYER IN YOUR AREA.
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