A lender can initiate foreclosure for any violation of the mortgage contract, but it is the failure to make timely monthly payments that triggers virtually all foreclosures. This is the paper that formally transfers ownership rights from the seller to the buyer. The most desirable type of deed to receive is the general warranty deed. If the seller uses a special warranty deed, it means that the seller guarantees that no such interests were established while he or she owned the property. A quit claim deed relinquishes the rights of the person signing the deed, but guarantees nothing about the quality of the title, including whether or not the signer has any rights in the property.
Lenders often require use of a general warranty deed.
This is a special insurance policy that backs up the warranty deed being delivered. Essentially, the policy writer agrees to reimburse the buyer or seller for any damages caused by a successful claim to an ownership interest in the property. Title insurers generally conduct a search of public title records to minimize the possibility of a claimant emerging. Title insurance protection is required by most mortgage lenders. Additional Documents There will be other documents as a result of services provided to support the transaction.