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The Mortgage Group of North Carolina Inc. is comprised of experienced, knowledgeable
mortgage loan officers and a helpful, well qualified support staff with
over 95 years of combined mortgage lending experience. We utilize the
latest in automated underwriting technology to provide timely answers
with many different rate and term options for North Carolina mortgages.
"Since 1986 my goal has been to offer only the highest quality
professional financing services."
Adrian Skiles, GML - Broker/President - The Mortgage Group of North Carolina
GAMB
"Top Gun" Mortgage Broker
Atlanta Business Chronicle "Top Mortgage Broker Performer"
Member National Association of Mortgage Brokers
North Carolina Licensed Mortgage Broker B-133310
Georgia Residential Mortgage Licensee
Florida Licensed Mortgage Broker
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The Importance of
Title Insurance When Obtaining a Mortgage
Most property
buyers obtaining a mortgage in North Carolina understand that a title
search is necessary to be sure they are receiving a marketable title at
closing. However, there are some title problems, which cannot be
discovered even through the most thorough title search.
There are hidden hazards, which are beyond the scope of a reasonable
search of title records. These include such things as: mortgage
forgeries, fraud, errors by the Clerk's office in the recording of
deeds, mechanics liens, defective foreclosures, faulty surveys,
misinterpreted wills, conveyances by a minor or a mentally incompetent
person, an undiscovered heir or ex-spouse who returns to claim interest,
a deed delivered after the death of the property owner, and other
issues.
A title insurance policy protects you from a loss, which would result
from any of the title defects above, up to the policy amount.
A mortgage "Lender's" title insurance policy provides protection to the
mortgage lender up to the loan amount. In the event of a claim a title
insurer covering a lender will cover that mortgage lender's loss,
acquire the note on the property and enforce payment of any remaining
balance from the borrower.
An "Owner's" title insurance policy protects the property owner's real
estate equity, which is the difference between the Lenders Title
insurance policy amount and any liens or encumbrances on the property,
which are specifically excepted in the policy.
The cost of an Owner's policy is minimal when obtained at the same time
as the Lender's title policy because the title insurance company gives a
"simultaneous issue rate."
A homebuyer pays a one-time premium for Owners title insurance, and the
Owners title insurance itself lasts as long as the purchaser or his/her
heirs own the property. Lenders title insurance must be reissued when
refinancing the mortgage.
Remember that a title insurance policy does not ensure that title
problems will not occur, but it does protect you from loss resulting
from title defects, which threaten your ownership up to the policy
amount. Title insurance also pays legal fees involved with defending
your rights. Although title losses occur infrequently, they can be very
expensive and time-consuming when you are not properly insured.
Owner's Title Insurance is usually not included on your Good Faith
Estimate because it is not a requirement of the lender. Most closing
attorneys will include the charge for that policy on your Settlement
Statement. You may elect to refuse the coverage at closing.
If you have any questions about title insurance when obtaining a
mortgage feel free to
contact us.
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919.741.5150
121 South Estes Drive, Suite 203-B, Chapel Hill, NC 27514
© copyright 1997-2008 |
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