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Refinancing your Brown County home means replacing your old mortgage with a new one, and your lender needs to ensure their new loan is properly secured. That's where title work comes in. Even though you've owned your home for years, your new lender requires updated title insurance to protect their investment in your refinanced loan. Between your original closing and today, liens, judgments, or other claims could have attached to your property without you realizing it.
Think of it this way: your lender is essentially making a brand new loan secured by your property. They need confirmation that nothing has changed with your title that could threaten their first-position lien. A contractor's lien from that roof repair, an unpaid HOA assessment, or even an old tax issue could complicate your refinance. Let's walk through exactly what happens during the title process for your refinance closing and why each step matters.
Your refinance starts with a comprehensive title search that picks up where your original purchase left off. We examine public records to identify any new liens, judgments, or encumbrances that have appeared since you bought your home.
This search covers several key areas. We review county recorder documents for any new mortgages, home equity lines of credit, or contractor liens filed against your property. We check court records for judgments that might have attached to your real estate. We verify current property tax status and confirm there are no delinquent amounts. We also look for HOA liens, divorce decrees that might affect ownership, or estate matters if there's been a death of a co-owner.
The search typically goes back to your purchase date, but we also verify that your original title work was sound. Occasionally, we discover issues that were missed during the initial purchase, which need resolution before your refinance can proceed.
Many homeowners are surprised when something shows up during their refinance title work. Here are the most frequent discoveries:
These issues must be cleared before your refinance can close. The good news is that most are straightforward to resolve once identified.
After completing the title search, we issue a title commitment to your lender. This document outlines exactly what title insurance we're willing to provide and under what conditions. It includes three critical sections that determine whether your refinance can proceed smoothly.
Schedule A lists the basic facts: your property's legal description, current ownership, and the loan amount we'll insure. Schedule B-I contains the requirements that must be satisfied before closing—things like paying off your existing mortgage, resolving any liens we discovered, and obtaining necessary signatures. Schedule B-II lists the exceptions to coverage, which are items we won't insure against because they're already known issues or standard exclusions.
Your lender reviews this commitment carefully because it determines the quality of the collateral securing their loan. If there are too many exceptions or requirements that can't be met, they may decline to refinance. This is why addressing title issues promptly matters so much.
When we identify title issues, time becomes critical. Most refinances have rate-lock expiration dates, and delays can cost you money if rates increase while we're resolving problems.
For unreleased mortgages, we contact the previous lender to obtain a release document and ensure it gets recorded. Mechanic's liens require direct negotiation with the contractor. Even if you dispute the debt, you'll likely need to resolve it to close on time—sometimes through payment, sometimes through negotiated settlement, and occasionally through bonding over the lien amount.
Tax liens need payment arrangements with the taxing authority. The IRS and Indiana Department of Revenue can both subordinate their liens to your new mortgage under certain circumstances, allowing your refinance to proceed while you address the tax debt separately. Judgment liens typically require payment in full, though some judgment holders will accept negotiated settlements, especially on older debts.
Small liens under a certain threshold can sometimes be covered by indemnity agreements or paid from your loan proceeds at closing. We work with you and your lender to determine the most efficient resolution path for each situation.
At your refinance closing, the title work comes together to protect everyone involved. You'll sign a new deed of trust or mortgage that gives your lender a security interest in your property. We ensure this new lien is recorded in first position, meaning it takes priority over other claims.
The title insurance policy issued at closing protects your lender if any covered title defects emerge later. If we missed something in our search—an undiscovered heir claiming ownership, a forged document in the chain of title, or a recording error—the policy covers your lender's losses. This protection is why lenders require title insurance on every refinance.
We also handle the payoff of your existing mortgage at closing, ensuring the exact amount is wired to your old lender and that the release gets recorded promptly. This prevents any gap where both mortgages might appear on your title simultaneously.
Our work continues after you leave the closing table. We record your new mortgage with the Brown County Recorder's Office, establishing its legal priority. We verify the recording was completed correctly and obtain certified copies for your lender. We also ensure your old mortgage release is recorded, cleaning up your title for the future.
The title insurance policy remains in effect for as long as your lender holds the loan. If they sell your mortgage to another company—which happens frequently—the insurance transfers with it, continuing to protect against covered title defects that existed at or before your closing date.
The key to a smooth refinance closing is addressing title work early in the process. As soon as you lock your rate, the title search should begin. This gives maximum time to identify and resolve any issues before your closing deadline.
Respond quickly to any requests for information or documentation. If we need a copy of your divorce decree, a payoff statement from an old loan, or clarification about a property boundary, delays in providing these items directly impact your closing timeline. Keep your settlement agent informed about any legal or financial changes during the refinance process—a new lawsuit, recent marriage, or even opening a home equity line of credit can affect your title work.
Your refinance title work protects your lender's investment in your new loan terms, but it also protects you. By ensuring all liens are properly released and your new mortgage is correctly recorded in first position, you're setting yourself up for financial clarity. When you refinance again in the future or eventually sell your Brown County home, this careful documentation makes those transactions smoother. Clear title work today prevents complications tomorrow.
Your new lender is essentially making a brand new loan and needs to protect their investment. Between your original purchase and now, new liens, judgments, or claims could have attached to your property without your knowledge, so fresh title work ensures the lender's loan is properly secured in first position.
Common issues include mechanic's liens from contractors, unreleased previous mortgages that weren't properly recorded, tax liens, judgment liens from lawsuits or unpaid debts, and unpaid HOA assessments. Most of these issues are straightforward to resolve once identified, though they must be cleared before closing.
The title search should begin as soon as you lock your rate to allow maximum time for resolving any issues before your closing deadline. The search itself examines records from your purchase date forward, but resolution of any discovered problems can vary depending on their complexity.
Delays in resolving title issues can cause you to miss your rate-lock expiration date, potentially costing you money if rates increase. This is why it's critical to respond quickly to requests for information and address any discovered liens or claims promptly through payment, negotiation, or other resolution methods.
The title insurance policy protects your lender for as long as they hold the loan and transfers with the mortgage if it's sold to another company. It covers title defects that existed at or before closing, and the careful documentation also makes future refinances or sales of your home smoother.