What is Payoff / Sub-Escrow?

August 17, 2017

You may know that an escrow company is responsible for the purchase and sale of a property. What you might not know is sub-escrow may be required.

A sub-escrow is a requirement of the funding lender (new lender). In some cases, the lender may be processing their escrow with a private company. This is so that the lender can be confident that the company receiving the funds has adequate Errors and Omission coverage in the event that there is any insolvency. Typically, the full escrow agent will be notified last minute that the lender requires a sub-escrow. From here, the sub-escrow is set up with the title company that is issuing the title insurance policy. read more

Why Lenders Require Title Insurance When Refinancing

August 10, 2017

You may have noticed that a lender requires title insurance when refinancing. Here’s why.

Lower interest rates have motivated you to refinance your home loan. The lower rate may save you a huge amount of money over the life of a loan, but you should also expect to pay the lender the typical closing costs associated with any new loan, including service fees, title insurance protection, and additional expenses.

For all of your questions about why you need title insurance when refinancing, read on.

Why do I need to purchase a new title insurance policy on a refinanced loan?

To the lender, a refinance loan is no different than any other home loan. Your lender will want to ensure that their new loan is protected with title insurance, just as the original lender once required. In short, when you refinances, you are buying a title policy to protect your lender.

What happens to my original title insurance policy?
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The Life of a Title Search

August 1, 2017

You leave the title search to the professionals, and rightly so. However, it’s helpful to understand the process of what happens so that you can better understand the title process and how it works to protect you, the homebuyer.

You’ve decided to purchase a home and hope to take possession of it as soon as possible. It’s an exciting time, but there are many steps to take before you get to the finish line. While the terms you’ve made are agreed upon and the financial arrangements are set, there is one important detail remaining: a title search. read more