Title insurance is a scam and should be against the law.
No kidding - but try getting a mortgage without it...
I know what it does, but I’ve never once seen a “claim” on title insurance.
However, aside from an equity loan, you ain’t getting a loan without it.
BTTT,
Never buy the stuff you are throwing money away.
Before closing on my house back in ‘94, the title search turned up a lien which had not been uncovered by whatever title outfit had been used by the seller when they bought the house 5 or 6 years prior. That lien had to be satisfied somehow, but I never learned whether the title company that missed it in the first place made it good.
The goal of title insurance is to prevent loss - extensive searches into possible liens, restrictions and encumbrances go into writing a policy. When doing a refi, always check with your current title insurance company to find out if they give any breaks for a refi policy, since they only have to search from the purchase or most recent refi date. Another company MAY offer a break if you provide them with a copy of your current title insurance policy.
Disclaimer: Many years ago, I was a title searcher for First American Title.
***Title insurance is a scam and should be against the law.***
Why do you say that, Truth?
If he’s refinancing, all he’d need is an update on the title ins. he already holds.
If he’s buying the house for the first time, there can be unpaid liens against it for which he would be liable; there can be lawsuits against it by co-owners, etc. etc.