Get a Property Title Insurance and Don’t Loose Your Home
Property Title Insurance: How Could Someone Lose Their Home?
In the majority of cases, the most important of our economic decisions in life is the acquisition of a home, the first one (if there’s the chance of getting more and more). But even if you are in the business of real state, a property title insurance is crucial for enjoying in peace with your family or making sure your investments are protected.
Your home is your pride and joy, and you look forward to living in it for years to come. Unfortunately, there are cases when people’s home are taken away from them. This could be because of questions surrounding the previous ownership of the property, other legal issues, a foreclosure, unpaid debts or taxes or personal factors. While some of these are beyond your control, others are preventable. It is worthwhile to familiarize yourself with the general causes of home loss so that you can take whatever steps are necessary to ensure that you will have a long future in your home, with a property title insurance as a real option
Ownership issues leading to home loss
While you may be confident that you have purchased your home according to legal requirements with, there have been cases where previous ownership of the property has later been found to be false or incorrect. This can, unfortunately, lead to you losing your rights to your home as the purchase transaction was based on incorrect information. That’s why a property title insurance is so important.
A property title insurance also can help in situations where the property deed was not properly indexed or recorded, or legal descriptions were incorrect. There may also have been pre-existing violations of various laws, such as subdivision mapping laws, zoning ordinances or conditions, covenants and restrictions affecting the land.
Financial reasons for home loss
Keeping your home can be jeopardized by a range of financial factors. The most common financial cause of home loss is an inability to meet mortgage repayments, which can result in foreclosure. This could occur due to a failure to adequately budget or assess your financial situation prior to purchasing your home; you may have lost your job or took a lower-paying one and you couldn’t afford the mortgage repayments. Maybe the professional advice you received was incorrect or you signed up for a mortgage that had very high interest rates and fees.
Other causes of home loss
While selling your home might not fall into the definition of “home loss,” sometimes this sale might be done under pressure and you might feel as if it was effectively taken away from you. For example, crime in your neighborhood or a serious dispute with your neighbors could prompt you to put your home up for sale. Maybe your family situation has changed and you need to leave your family home or perhaps you can no longer afford to maintain your home and pay for repairs.
Prevention is the best cure: property title insurance
While not all of the above causes of home loss are preventable, many are. In particular, many of the financial causes can be prevented, and the ones that are covered by a property title insurance. It is recommended that you carefully consider your financial position prior to purchasing your home. If you do find yourself in financial straits after your purchase, consider contacting your mortgage lender to see what they suggest; you may be able to re-mortgage or make interest-only payments.