Using Letters of Indemnity to Clear Old Mortgage Liens

A Guide for Title Agency Employees

Using Letters of Indemnity to Clear Old Mortgage Liens: A Guide for Title Agency Employees

What is a Letter of Indemnity (LOI)?

A Letter of Indemnity (LOI) is a document sometimes used to clear outstanding liens against a property, primarily mortgages, when these liens were paid and insured over by a previous title insurance policy. The LOI serves as a guarantee from one underwriter to another, ensuring coverage for any future claims related to the lien in question.

When to Use a Letter of Indemnity

A Letter of Indemnity is considered a last-resort option to clear a lien when all other methods have been exhausted. The use of an LOI requires approval from both the underwriter who previously insured over the lien and the current underwriter who will be insuring the new policy.

How to Obtain a Letter of Indemnity

If you believe you have exhausted all other options to clear a previous lien, follow these steps to obtain a Letter of Indemnity…

Subscribers, scroll down to continue reading for step-by-step instructions on how to order a letter of indemnity.

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