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Title Insurance Is A Good Thing
Over my career in real estate and mortgages I have heard many complaints about paying for mortgage insurance. Having never personally seen it pay off I could understand the concern.
Some of the owners of Starpoint have reason to challenge that concern. As the building was completed and owners moved in it seemed like Starpoint was about done. The truth is they were unaware the developer GMP was financially cooked.
Weeks after completion the owners that had closed to that point were sued by Norcon Development, the contractor hired by GMP. In Washington lien law, properly filed mechanics liens become a first lien or first mortgage. Thus the reason lenders require a lenders title policy.
It has been a nearly two year law suit to this date. The suit is not settled, Frontier Bank the construction loan lender has sold its rights to an investment group, Liberty Capitol. Liberty has thus filed foreclosure and is claiming not only a right to the 10 unsold units owned by GMP, but to some of the units now owned by individuals.
Thus the point – First American Title has stepped up as the insurer and hired an attorney to represent the covered home owners. Should they lose the lawsuit, First American will be responsible to pay in behalf of its policy holders.
So, like all insurances, when you need it, and have it, it’s a good thing.
First American Title Building, Phoenix Arizona from Flickr & By mike_s_etc
