How a Signature from 70 Years Ago Can Affect Your Home Ownership? May

May 9, 2018

It can be easy to think that, once the papers have been signed and the keys are handed over, that you are the rightful owner of a property and its title. However, the reality is very different. In reality, there is a number of reasons and circumstances which, if not identified prior to sale, could seriously affect your home ownership.

Why Is Title Insurance in Clinton Township, MI so Important?

Below is a great post from Speedy Title and Escrow Services, LLC with some information on just one of the many circumstances which could land you in hot water if not adequately protected by title insurance. Consider the following scenario:

The property which you are thinking of purchasing was part of an inheritance settlement 70 decades ago.
During the settlement, two of the recipients forged a signature for a third recipient and didn’t advise them of their rights to inheritance.
The property is sold twice since arriving at your ownership
Settlement occurs and you are the owner of the home which you and your family settle in to.

For the most part, it seems like a seamless process with little problems for the current owner. However, let’s continue the scenario.

You and your family are enjoying your home ownership
The third inheritance recipient mentioned above discovers that rightful inheritance was withheld during the disbursement.
The recipient lodges a legal claim for part-ownership of the title to your home.
You receive a claim seeking ownership or financial retribution for the inheritance lost.
If you aren’t able to pay the outstanding amount, your property can be foreclosed for the purpose of recovering the funds.

While this can seem outlandish, the reality is that situations like these occur all the time and can have serious affects on your homeownership - namely, the removal of it! This can leave you with no title but still paying a mortgage. The first step of the title insurance process is to perform a thorough title search. During this step, issues such as the one mentioned above can be identified and resolved prior to the sale of your home. To lean more, speak with an expert at Speedy Title and Escrow Services, LLC by calling (586) 739-2233.

How Can You Protect Yourself?

If the above situation or anything similar frightens you, then you are not alone. In fact, the concern for these situations is so great that there is a purpose designed way to minimize the risks. It starts with a title search. During this search, a qualified and experienced title investigator will comb through every detail, no matter how big or small, relating to the history of the title to ensure that it is clean of issues such as the above. This could mean further investigating or even verifying signatures to ensure everything checks out. If any issues are discovered, the title agent will provide a report listing any concerns or issues which could affect your future homeownership. This is your chance to address any concerns with the current owner prior to settlement and to you taking ownership of the property (and its associated and undisclosed debts) Once any and all issues have been resolved, the title agent can perform one final check before preparing a policy for title insurance in Clinton Township, MI. This can only be taken out prior to settlement.

What Does Title Insurance in Clinton Township, MI Do?

Once you have arranged your title insurance policy and paid a one-time fee, your policy can cover a range of situations. Most importantly, despite the situation, the premise of title insurance is to provide financial relief. As an example, in the above situation, instead of selling your home to recover owed funds, your title insurance policy provider can consider paying out the claimant to clear up and remove any claims. This is all done behind the scenes without the need for your involvement, leaving you to continue enjoying your home and its ownership.

Protect Your Investment with Title Insurance in Clinton Township, MI

When it comes to protecting your investment and your future, there is no better option than title insurance. With a one-time fee, the title of your home and its ownership are protected. To learn more or to get the ball rolling, speak with a title insurance expert at Speedy Title and Escrow Services, LLC by calling (586) 739-2233. Remember, title insurance is only available prior to settlement. Once papers have been signed and the keys have been handed over, any and all issues which arise against the property's title become your sole responsibility.