How will a junior lien policy work?
A junior lien policy is requested and paid for by the lender before the title work is begun. The title company searches title for a time period sufficient to locate the deed into the party applying for the home equity loan. The title company will list the liens found since that date. The title company will identify any existing home equity liens and the date such liens were recorded. The title company will insure that the property is not subject to an agricultural based tax exemption. After the closing of the home equity loan, the lender should request and pay for a down date endorsement. The endorsement covers the period between the original policy and the filing of the lien.
