A lender's policy protects the mortgage lender if someone challenges a property title based on any title defects that were unknown when the policy was purchased.
When a buyer obtains a mortgage in order to purchase their new home, it is usually a loan requirement that the buyer obtain a Lender’s Title Insurance Policy.
The coverage doesn’t provide any protection for the buyer. If there is a complete failure of title, the buyer may have no protection and may lose both the property and the equity in the property. The buyer could also incur legal fees and any tax penalties assessed against the property.
A buyer should never presume that the lender obtained title insurance for them.
Title Insurance is offered through Virginia Statewide Title Services, LLC, an affiliate of Virginia Credit Union, Inc. (VACU) and Bon Air Title, and is underwritten by unaffiliated insurance companies. VACU may receive a financial or other benefit because VACU, through Virginia Credit Union Financial Services, LLC has an ownership interest in Virginia Statewide Title Services, LLC.
Any title insurance required as a condition for settlement of your loan or purchase, sale or refinance of the subject property is not required to be purchased from Virginia Statewide Title Services, LLC, and can be purchased from an agent or insurance company of the member’s choice. For VA residents only.
Business conducted with Virginia Statewide Title Services, LLC, is separate and distinct from any business with VACU. Virginia Credit Union, Inc. (VACU) is not responsible for products and services purchased through Virginia Statewide Title Services, LLC.