Episode 24: What Experienced Lenders Know About Title Policies That You Don’t

Are you sure your lender’s title policy covers everything it should? In this episode, Rich Lennon shares valuable insights into what experienced lenders know about title policies that many people overlook. Title insurance is a crucial aspect of real estate transactions, but understanding its limits and how title companies operate can save you from costly mistakes. This episode will provide you with the tools to make informed decisions and ensure your investments are well-protected.

You’ll Learn How To:

• Understand the importance of title insurance in real estate transactions.
• Avoid common issues that arise with title companies and claims.
• Ensure your title policy covers the full loan amount.
• Recognize how construction costs can affect your title insurance.
   

What You’ll Learn in This Episode:

(00:35-00:52) 75% of your title fee goes to title work, not coverage.

(1:13-1:34) Why title companies often deny claims despite title insurance.

(1:54-2:04) Common issues when title work is done incorrectly and how it affects you.

(2:51-4:55) How title insurance only covers the original purchase price of the home.

(4:58-5:28) Why lenders need a separate lender’s title policy to protect their loan.

(05:46-6:05) What fractionalized notes mean for title insurance and how it affects your coverage.

(06:43-7:21) The importance of adding the correct verbiage to your title policy to protect your interests.

(07:58-9:53) How to ensure that the "lazy money" is protected in your title policy.

(09:55-10:18) Final thoughts on why lenders’ title policies are essential in real estate lending.

Who This Episode Is For:

• Real estate investors
• Lenders
• Homebuyers
• Those who want to understand how title insurance works
• Individuals looking to learn why title insurance is necessary

Why You Should Listen: Rich Lennon breaks down the essentials of title insurance, highlighting why it’s crucial for lenders and how failing to understand it can lead to significant financial challenges. Discover how to safeguard your investments and prevent costly errors in the realm of title policies.

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