Title insurance is not available in all parts of the world and in countries of ownership disputes resolved through court action. Unfortunately, the actions of the court may take a long time and the results are never guaranteed. In the United States, title insurance is the mainstay of the property transfer, but is it really necessary? You can discover more information about title insurance through Clear Skies Title Agency.
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In countries where there is no title insurance, very few mortgage property. Buyers must purchase with cash or collateral far exceeds the value of the property. In some foreign countries where the buyer can get a property loan, they must be cross-collateralized by 2-3 additional real properties.
Conventional lenders in the United States will not loan on a property unless it has what is called a precious title that comes with the title insurance policy.
This is handled in the title policy as an exception or exemption, and they could still exist after the transfer of title and until they have recovered someday by the buyer.
What this means for buyers of REO is that he might get a degree insured, but not the necessarily valuable title. A non-marketable title means that somewhere in the ownership of the property, either by the buyer or by a person who sells to, conventional lenders probably will not finance the property.