WHO USES MORTGAGEE POLICIES?
People who lend money. A mortgage title policy guarantees to the insured (the lender) that he has a valid lien on the property. The amount of coverage decreases as the note is paid off. It does not guarantee anything to the property owner and provides him no recourse to the title company should the title prove defective. If the mortgagee policy holder should foreclose, then the policy would be come an owner title policy to him.
