Do I need to buy Owners Title Insurance, if i am doing 100% financing for my condo?

Question

I need an impartial opinion about whether I need to purchase Owners Title Insurance since i am doing 100% financing.
My logic for not purchasing the title insurance is that since i'm financing 100%, i won't have equity, therefore, if something was wrong with the title i could literally walk away and not have anything to lose (i.e. equity).
What's your opinion?

Answer 1

I would get it. You will have equity. Prices will go up, even if they are currently slipping in the market.

Answer 2

If you are doing 100% financing the mortgage company will require you to have a lenders policy. Usually owners policy's are the same cost as the lenders policy except they are based on the purchase price not the loan amount then add $35. At 100% financing it will only cost you $35 more? At that rate the question of should you get it becomes a very silly question don't you think?
The title insurance is most important in the first 10 years of ownership. If the previous owner had a judgment on them against the property and it was over looked you could become responsible. You are also dealing with a condo. That means you don't own the land. The condo association owns the land. What if there is title issues with the land? For about $3.50 a year it is well worth the investment. After 10 years you would be protected by something called color of title if you did not have the title insurance but that is something totally different.

Just a note. 6 months down the road you have a title flaw and you want to just walk away. How much does it cost to move? Not counting the pain in the but. Will it cost you at least $35.00?

By the owners coverage!

Good luck,

Michael

Answer 3

if there is a legal problem with the title, say, someone shows up and says "hey, i owned this before you and the person who sold it to you was my ex and had no right to sell it." now, are you going to say " oops, my bad, i'll move out" or would you get a lawyer? the bank doesn't care if you or some else claims to own the property, you'll still owe the money. if you have title insurance, it'll pay for the lawyer and cover your ***. you never know what scams people will pull and it's best to be covered. also, i know in california and texas, it is standard for the seller to pay for the title ins. so you may want to ask your agent about that. it should have been stipulated in your offer to the seller. you may be getting a good deal because you offered to pay for title ins. it's only a few thousand dollars now as opposed to having to walk away from the property and still owe the mortgage for it, or pay lawyers many, many thousands of dollars to fight something. if you like gambling, don't buy the ins, if you like sleeping at night, buy it. you'll never think of it again unless you have a problem and it will help you not worry about it.

Answer 4

that could no longer genuine. truly no longer genuine. call insurance is mandatory to a house purchase, and all and sundry who would not get one is a fool. they are lower priced, so it truly is stupid no longer to get one. a previous proprietor's call insurance does no longer protect you in any respect. It ends the day they promote it. A call insurance isn't inevitably for liens, that's likewise for property move...only because your sellers has owned the valuables for thirteen years would not advise that the folk who conveyed it to them had a criminal excellent to finish that. There are limitless subject matters that would take position with a acceptance, no longer only property conveyence. If the criminal professional that certifies your call makes an blunders, and also you do not take out call insurance, wager who will pay the correction? YOU DO. An criminal professional under no circumstances guarantees call, they offer a "criminal call opinion". in trouble-free words call insurance guarantees your call. you also do not recognize that the day you close up on it, someone hasn't been there that morning to document a lien hostile to it...and it does take position. you do not recognize of the monetary stability of the folk you're procuring from.

Answer 5

You may need the insurance and it should be a one time premium.
If the property became worth much more down the road than what you paid for it. there is agood chance investerss or lawyers could try to take it away from you.

Answer 6

title insurance covers you should an un known legal problem appear. you will do your self a financial disservice not getting it.
also you shoot yourself in the ........ by being that financial cheap.