There are many types of endorsements that can be used in title insurance – each with their own particular benefits. In this article, we are going to discuss the first loss endorsement and when it can be effectively utilized in a title insurance policy.
ALTA First Loss Endorsement
The ALTA first loss endorsement may be used when the security for a loan consists of multiple parcels of real estate. It allows the insured lender to make a claim against the policy without foreclosing on all of the collateral. With this endorsement the insured lender may receive compensation from the title insurer before the amount of an actual loss from a title defect is determined by foreclosing on and then selling all of the collateral.
This endorsement is available in a lender’s policy but not in an owner’s policy.
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At Commercial Partners Title Company, your commercial transaction is our top priority. Our team of experts has a combined 200+ years of experience in the commercial title industry and we use that knowledge to help each of our clients. Our team is comprised of a wide range of experts, including: title closers, underwriters, escrow agents, and more. Reach out to the team of title insurance professionals At Commercial Partners Title today to learn more about our expertise and see how we can help guide you through your next transaction.