   | Welcome to the Notary Talk General Discussion Forum. Before posting, please read the  |
| You are replying to this message: | | |
Posted by BobbiCT on 3/22/19 6:41am
Glad to hear it went well for you.
In short, there are many things that an underwriter for a title insurance company must verify and document for the lender title insurance policy. For example, just two: that the LLC is properly formed, requires various state, federal and tax records searches (Articles of Organization & who members are [Patriot search]), and that the person signing for the LLC (even if single member) has the authority to do so - often includes review of sections of the LLC's Organizational documents and signed Resolution stating person has authority to purchase specific property, borrower money and mortgage the purchased property.
I do not know the whole story, but can understand a delay while this is being done. Hmm... didn't the lender let the title company know an LLC was the purchaser well before the closing date was set?
I've worked with this situations for more years than I will admit. It goes very badly for the title insurance company that insures a mortgage loan to the lender if there's a "bad" LLC, the loan goes south and the lender makes a claim under the policy. Yes, I'm one of those people that reads the underwriting manual and the 6+ pages of fine print in the lender and/or owner policy jacket. |
|
