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Title insurance cancellation

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ashina1

Junior Member
What is the name of your state? TX

Hello,

I purchased a HUD foreclosed home 3 months ago. when closing I purchased a buyer title insurance policy from the title company. The premium was around 900 $.

I never received a copy of the policy. I wonder if now I can cancel the policy and get a refund for the premium I paid.


Please help.

Ashina1
 


HomeGuru

Senior Member
ashina1 said:
What is the name of your state? TX

Hello,

I purchased a HUD foreclosed home 3 months ago. when closing I purchased a buyer title insurance policy from the title company. The premium was around 900 $.

I never received a copy of the policy. I wonder if now I can cancel the policy and get a refund for the premium I paid.


Please help.

Ashina1

**A: we are wondering too.
 
ashina1 said:
What is the name of your state? TX

Hello,

I purchased a HUD foreclosed home 3 months ago. when closing I purchased a buyer title insurance policy from the title company. The premium was around 900 $.

I never received a copy of the policy. I wonder if now I can cancel the policy and get a refund for the premium I paid.


Please help.

Ashina1
You need to go read somewhere about what title insurance is. It is not like car insurance or homeowner's insurance. You can't just cancel it.
 

nextwife

Senior Member
If you closed in reliance on their commitment, they are obligated under the terms of their commitment. as long as you met the Schedule B1 "requirements".

Simply contact them and remind them that somehow you either never recieved or can't find the final policy. Based upon my understanding of how the insurance is in force, the title "insurance" has been in force since you closed based upon the use of their commitment. Even if you don't physically have a final policy, if you met their terms, they would be liable for any covered claims. So, no, an in-effect policy cannot be cancelled, NOR DOES IT REALLY MAKE SENSE TO DO SO, AS YOU WOULD THEN HAVE NO INSURANCE GOING FORWARD. The typical title claim typically appears an average of 7 to 10 years after the event that caused the claim. I've seen title claims occur as long as 35 years after the event that created the claim.

Besides, title insurance insures against claims resulting from events from the effective date BACKWARDS. So, if you cancelled, you would not be entitled to any refund, as YOU WERE ALREADY BENEFICIARY OF THEIR RESEARCH WHICH WAS USED AT CLOSING TO DETERMINE THE STATUS OF TITLE..

And be certain you are not confusing the Owner's Policy, that insures YOUR buyer's interest, with the "Mortgage Policy" if there was a lender, that was required by the lender in order for you to complete your purchase using a mortgage? Many people make the mistake of thinking the mortgage policy, which they as a buyer must pay for, is insurance for THEM.

Simply contact the provider and obtain a copy of your final. Very possibly, they were instructed to send it to your attorney and it somehow was never forwarded to you. Many times, the problem is NOT that a final was not issued, but that the final didn't make it's way to the buyer.
 
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