As an alternative to title searches in Home Equity or HELOC loans, Simplified offer a Lien Protection Service through Equiguard.
Lien protection via Equiguard is designed to help lenders streamline the closing process for all second position mortgage products. In addition to saving lenders the cost of a title search, institutions also save the time and effort used to clear up discrepancies found in a search. With Equiguard, old mechanic liens, tax liens, and other items found on the title search will not delay the closing of the loan or take employee time to resolve. Equiguard's policy insures lenders against the loss, including all losses due to a superior lien that a title search would discover, and works for all second lien position loans, as well as loans without a first lien. It's also simple to use; the borrower fills out Mortgagor's Affidavit of Ownership and Good Title, and, along with their signature, document is placed in lender's files for their records.
Benefits of Equiguard include:
- Replaces the title search process in Home Equity or HELOC loans.
- Lien protection with Equiguard costs less than half the price of a traditional title search.
- Used for funded loans only; no charges for loans that do not close.
- Coverage is blanket format, with loans reported monthly.
- Coverage limits are $350,000 for any second-lien position loans.
- The maximum LTV is 100%.
- No deductible.
Equiguard is currently NOT available for sale in California, Oklahoma, or Texas.
Disclaimer: The provider of Equiguard is not selling Insurance or Title Insurance, nor is the provider providing a warranty or guarantee. If a “Third Party” (or its successor) suffers damages resulting from errors or omissions contained in this Program, the “Third Party” is entitled to recover damages through the Professional Liability Policy, subject to the terms, conditions and limits of the policy. The Insured should maintain an errors and omissions policy for all exposures they have which are not covered by this Program.