Escrow & Title
In Nebraska, a lender's (mortgagee's) title insurance policy protects:
AThe buyer/owner against all title defects
BThe lender against title defects that could impair the lender's lien position✓ Correct
CThe seller from post-closing claims
DThe real estate agent's commission
Explanation
Lender's title insurance protects only the lender's interest (their lien position) against title defects. It does NOT protect the buyer/owner.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
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