Chicago Title Insurance Company

SUCCESS STORIES


TITLE INSURANCE SUCCESS STORIES


Unexpected Tax Lien - Carol B.'s Tax Lien and the Benefits of her Title Policy

A CLTA Standard Policy was issued to Carol B. She is a single mother, barely managing on her waitress' salary. She was only just able to qualify for a low-interest loan from the United States Department of Agriculture Rural Housing Community Development Service. This loan enabled her to purchase her own home.

The Development Service has very strict criteria for low-income individuals. These criteria include such items as the ratio of an individual's salary to their loan payments and the amount that they can afford to pay for real property taxes. Carol B. met these criteria, but an increase in either her loan payments or real property taxes would disqualify her from the Loan Program and would result in the loss of her home.

Shortly after her purchase of the property, Carol B. received a new tax bill for real property taxes. The bill disclosed that the taxes were over $2,000.00 per year, which would disqualify her from being able to keep her home. When she contacted the assessor's office, Carol B. was told that the increased taxes included a $9,000.00 special assessment for a special street tax. This special tax had not been shown as a separate matter in the preliminary report that Carol B. and the Loan Program had received.

Both Carol B. and the Loan Program then contacted the title insurer. Prompt arrangements were made to pay the special taxes, enabling Carol B. to keep her home.