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tmorrow:

<<<<I have always had to pay for the lender's policy when I refi'ed. But I have never gotten a new owner's policy, because there is no need to.>>>>

"Very interesting... can anyone else confirm that I can skip getting a new owner's title policy? That is half the closing costs right there, so that would make me much more interested in refinancing.

At any rate, thanks to all you folks for your great replies, especially DWDonhoff and JAFO! The possibility of "re-issue credits" is encouraging, and I will definitely contact the title company that did my first policy, to see what their rates would be."


Your welcome, but I thought that my earlier post also discussed this issue. (;>)

"It would seem to me that my original owners title insurance should still cover me for the cases that I could be at risk: If the previous owner or others had hidden claims or liens on the property that existed at the time of purchase."

Correct.

"My understanding is that the new owner's title insurance that I would pay for at the refinance would basically protect me from any liens or claims that occurred between the original purchase and the refinance."

Not exactly. It will not insure you against matters that you authorized. And if anything lien has been recorded in the intervening time, the title insurer would likely take exception to it anyway (i.e., exclude it from your coverage).

"Certainly an ultra-careful person might want that coverage, but I don't see any reason why a refinance necessitates that coverage. Perhaps a mechanic's lien could have been errantly placed on my property after purchase, and the new owners insurance would pay my legal expenses in expunging that, if it were discovered after the refinance."

Not likely. See above.

"But that's an issue that as far as I am concerned would have been there regardless of whether I refinanced, so I don't see why refinancing necessitates my buying that additional insurance. If it really was worth my spending more than a thousand dollars every couple of years for that insurance, I'm sure that there would be plenty of agents trying to sell that to me and I'm sure it would be paid out of my escrow account regardless of whether I refinanced.

Perhaps E-loan messed up by putting that on the estimate, and perhaps I really don't need it at all."


Regards, JAFO

Disclaimer

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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