requirement asked by lender, unsure of meaning.

[Jonathan Kramer]

title insurance/ certificate of title on property being purchased that provides a first lien position on above mentioned property in favor of *banks name* .... this was one of their conditions, this is my first property loan can someone explain what exactly this means, thank you.

[Account Closed]

Originally posted by @George Taylor:

This is to make sure the lender has the title in their name of your property until you pay that debt. Then it will go to you or to your new finance company if you do a refinance with a different lender. Just like with a regular mortgage, the bank owns the property, you are just making payments until that debt is paid off and then you own it.

 This is incorrect.  This is how car title works but not RE title.