When a bank foreclose is completed on a home, they repossess that home and sell it at an auction to new bidders. But, before you buy them, you need to consider buying title insurance in Florida.
What Does Title Insurance Do?
Title insurance is a form of indemnity policy to protect mortgage lenders and home owners against loss, which is caused by legal claims or title damages on a property.
Title insurance safeguards the title – your claim to a home. A title company tries to figure out if the property can be claimed by anyone. They go through public records to identify any claim on the property. A title can be seen as “dirty’ if there are unresolved building code violations.
When you are in the midst of buying a bank-owned property, and the title company is dissatisfied, it may refrain from selling a policy. It’s important to invest in title insurance because it saves you from major financial losses in the long run.
For example, consider a scenario where you bought a home. After living peacefully for two years, a stranger knocks on the door and happens to be the unknown child of your previous owner! He can claim the ownership of the home and argue that he never agreed to the house’s sale. Without title insurance, things can turn ugly and you may even end up on the losing side!
Contact us so we can make sure that you can buy a new property and move permanently without any issue. To get the cost of title insurance in Florida, send us a message.