The title to the property must be original to allow the mortgage process to enter the closing stage. A property title search is necessary to determine if a disability exists while title insurance is important to continue protecting the title against future claims. Claims against titles can only arise from past events and can be easily terminated title processing outsourcing. This involves hiring an expert to identify and fix some of the following seven problems.
• Forgery or coercion (fraud) in title deed or mortgage
• The deed or mortgage may be signed by a minor, insane or unskilled person.
• Termination of a mortgage or deed that may be void for several reasons. For example, it could be terminated based on a power of attorney or the levy on which the title rests is void.
• Outsourcing of title processing can help identify whether a deed was signed by another person with the same name as the person wishing to own or own the property now.
• A building may have caught fire leaving only the floor. If an attack on the rights would ever arise, and the title was found to be corrupted, the owner would lose not only the ruins of the house but also the land on which they stood.
• Claims that may arise because of the current or previous marital status of the property owner. Outsourcing title processing can help a person obtain an insurance policy that will protect property against future non-existent divorced spouses, unidentified children, and undisclosed heirs.
• A property that the beneficiary may have transferred with a lien for unpaid taxes and other unpaid dues.
The role played by the internal title processor is quite complex. They include a series of steps that an ordinary person would find not only difficult but frightening as well. Outsourcing of title processing allows mortgage companies to delegate this difficult role to someone else who specializes in it. Using its resources, and working from its remote location, external loan processors direct the mortgage processing task to the closing stages faster than internal staff or individual home buyers. Outsourcing title processing involves the following six tasks on behalf of the person or company that requires title insurance.
• The title job title loan officer is assigned to start by opening a title insurance request
• Further, outsourcing title processing allows hired loan officers to perform property, tax, and name searches. This facilitates early reporting issues.
• The technical review stage follows and it’s all about the processing officer trying to evaluate and interpret all public records to determine their impact on the title.
• The team conducts site inspections in accordance with ALTA. This allows it to generate an inspection report that is compared to the first unaltered title document. If any violations are noted they are corrected immediately. Title insurance commitments are issued to prospective policyholders. A title processing outsourcing professional was also asked to explain disclosure issues on commitment documents.
• The loan officer team will then issue a pro-forma policy that shows what the actual policy will look like in the end. The underwriting process is still ongoing today.
• The final property rights insurance policy is issued when all conditions in the property rights commitment have been met.