Subsequent Advances Endorsement
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What are Subsequent Advances Endorsement
The Subsequent Advances Endorsement is made by the insurer who states that the insured mortgage and the credit loan agreement which is included cannot exceed the insurance amount and even though the insurance amount is reached by principal indebtedness, and this has insurance amount is reduced with the passage of time before the advance, the advance has the same kind of priority which is as per the encumbrances and liens and other advances as per the mortgage insured and the policy date except when there are the following factors and if it is disclosed to public records or if it is known to the insured before the advance :
- If there is a sale or if there is any portion that is transferred or any estate or any interest that is encumbered as a result of the mortgage insured.
- If there are real estate taxes or if there are special assessments which have been levied.
- If there is any claim against the property by a mechanic’s lien
- If there are bankruptcies which affect the mortgagor or mortgagors or interest of the mortgagor.
This however does not allow for the insurance to insure if there are losses or damages based on usury and the endorsement is part of the policy commitment and this Subsequent Advances Endorsement is also stated in the endorsement including it states that there are terms, commitment amount, dates and it ensures that the endorsements which are made prior are not changed at all. This is a document which is necessary for the insurance company to have.
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