Don’t gamble your new home away.

By: Kara L. Webb, Esq.

One of the single worst decisions a new home buyer can make is failing to buy a title insurance policy.  For most of us, your home is your family’s single biggest asset.  Title insurance affords protection against losses arising from problems connected to the title on your property.  Why risk losing your biggest asset over the very reasonable cost of title insurance.  Currently, a standard owner’s title policy for a $150,000.00 home is in the range of $500.00.  

But you might think, we had a closing attorney who handled the transaction, so we should be covered right?  WRONG.  Even the most experienced and thorough closing attorney cannot protect you against potential hidden title defects.   Here are just a fraction of the reasons to purchase a title policy:  

·        Protection against forged deeds, mortgages, satisfactions or releases.

·        Protection against deeds or mortgages signed by minors or mentally incompetent persons.

·        Protection against a defect in the recording of a document upon which your title is dependent.

·        Protection against others that claim they own an interest in YOUR property.

·       Title insurance reimburses you for the amount of your covered losses, including attorney fees and  court costs.

·        Title insurance helps speed negotiations and closings when you’re ready to sell or obtain a loan in the future.

·        Title insurance is indefinite.  The owner’s protection lasts as long as the owner or any heirs have an interest in the property.  

Title insurance matters even more today.  Mortgage fraud, sloppy foreclosure procedures, and desperate sellers are a growing part of today’s real estate market.  Many of these fraudulent acts can result in title disputes.  Don’t pinch pennies and gamble your new home away.  Protect your family’s biggest asset and opt to purchase a title insurance policy at your next home purchase. 

Kara L. Webb is a real estate attorney with the Law Offices of Mark Weinstein, P.C. in Cumming, GA.  Ms. Webb’s practice focuses on both real estate transactions and real estate litigation, in addition to eminent domain work. A Martindale-Hubbell AV Preeminent® rated attorney with over 10 years of experience, Ms. Webb is admitted to practice law in Georgia, Tennessee and Michigan. 

The Pitfalls of Co-Signing a Mortgage

A friend in Need is not always the best of friends. And if your friend comes to you asking for you to co-sign the mortgage, you need to know exactly what you are getting into before you put your name on the line.

The following question came into my office, and I thought this might affect many of you who want to be a friend ... indeed.


Question: I co-signed on a mortgage for a friend. How can I take my name out of the loan?
Question Detail: One of my friends asked me to cosign a mortgage for him. Is there a way that I can take the name out easily from the loan besides refinancing in the future? Will my name be on the deed as well as the loan? Are there any other liabilities that I need to watch out for? Under what condition can I remove my name out of the mortgage without any consequences and how soon? Thank you very much for you professional and legal advice.

My Answer:

It may not be easy to remove your name from the mortgage.   The lender who made the loan did so based on you signing and agreeing to guarantee payments.  If your friend has consistently made all payments on time, then the lender may consider removing the guarantor (you) from the loan agreement, but unless there is some clause in the mortgage agreement stating otherwise, the bank is under no obligation to remove you as guarantor,  and especially in today's uncertain economic times,  there is little incentive for the bank to release you as a guarantor on the loan.  Even so, it doesn't hurt to ask.  A refinance may be an option, but both your friend and the lender,  or a new lender, would have to agree to this.

Just because you are a guarantor on the mortgage does not mean you are on the title to the home.   To find out if you are on the title,  you must check the deed records in the county where the property is located.

You should not be responsible for any other liabilities except those that you agreed to as a guarantor on the loan.  To be sure what liabilities you agreed to, you will need to review the loan agreement you signed.  However, especially if your friend stops making mortgage payments, tax payments, utility payments, etc., some creditors may start calling you just to see if they can get you to agree to pay.   Just because you are not required to pay doesn't mean they might not try to get you to pay.

As with any situation involving a written agreement, your rights and obligations depend on the written agreement you signed, and the above is intended only as general advice.  For specific advice you should  consult directly with an attorney.

Disclaimer: The above is intended as general information and your specific situation may be different so it is always important to speak with a lawyer about your specific situation.

For further information, visit our website at:

MarkWeinsteinLaw.com