Title insurance is one of the least understood components of the real estate process. What exactly does it do, you may ask? To put it simply, title insurance protects lenders and owners against unforeseen problems with titles and mortgage liens. There can be hidden defects in a title that not even the most experience settlement agent will catch. A lender’s policy is required by every public mortgage lender and protects for the amount of the loan. This does not cover buyers, who must purchase their own policy to be covered.
Title insurance is not a recurring cost and does not have annual fees; it is paid once at the time of settlement and is good for the duration of the time one owns a property. There are four basic steps to what happens when title…
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Almost No DC Foreclosures Since 2010
DC foreclosures have almost come to a halt due to the Saving DC Homes from Foreclosure provision passed by the DC City Council back in November 2010. The 41-page bill requires lenders to provide a four-month mediation period to homeowners at risk for foreclosure, as well as file copies of notices with the DC Department of Insurance, Securities and Banking. Before this law, some foreclosures happened in as little as 30 days.
Borrowers can elect to participate in the in-person mediation, but lenders are required to do so. The mediation period allows delinquent borrowers to discuss payment options in order to avoid foreclosure. These options could include renegotiation of the loan terms, loan modifications, refinancing, a short sale, deed in lieu of…
