Escrow & Title
In Montana, a 'mortgagee's title insurance' (lender's title insurance) policy protects:
AThe borrower against title defects
BThe lender against loss of their security interest due to title defects, covering the lender's interests in the amount of the outstanding loan balance✓ Correct
CThe title company against claims by the lender
DThe previous owner against claims from the buyer
Explanation
A lender's (mortgagee's) title insurance policy protects the lender's interest in the property up to the outstanding loan balance. It is separate from the owner's policy and does not protect the buyer/owner.
Related Montana Escrow & Title Questions
- A preliminary title report (or title commitment) is issued to:
- In Montana, a 'preliminary title report' or 'title commitment' is issued by a title company to:
- A general warranty deed provides the greatest protection to the buyer because it:
- The purpose of a title search is to:
- In Montana, a 'satisfaction of mortgage' (deed of reconveyance for a trust deed) should be recorded within how many days after the loan is paid off?
- The HUD-1 Settlement Statement has been replaced for most residential mortgage transactions by the:
- When a buyer purchases a property and receives a title insurance policy, the one-time premium covers:
- A satisfaction of mortgage (mortgage release) is recorded when:
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