Answers to Common Consumer Questions

The Loan Policy Does Not Protect the Borrower
The loan policy protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist, but may not be known at the sale

But, this policy only protects the lender's interests. It does not protect the borrower. That is why a real estate purchaser needs an owner's policy, which can be issued at the same time as the loan policy, usually for a nominal one-time fee.

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