Foreclosure crisis: What it means for you Jennifer Openshaw - MarketWatch: "If you bought a foreclosed property
If you bought a foreclosure home, your title — and ownership of your property — could be in question. “The issue is really about the validity of the titles,” said Consumer Action’s Linda Sherry.
Title insurance is typically purchased when you buy a property. It protects you if someone comes back, say, three months or three years later and claims that they hold the actual title or ownership of a property.
But what if, in court proceedings, someone who lost his home in foreclosure wins it back because of a bank or loan servicer’s sloppy paperwork or other mistake? Sherry said in that situation there is a chance you might not get to keep the foreclosure you purchased. However, she said, “if you had title insurance at that time, you’d at least be covered monetarily.”
If you’re looking to buy a foreclosure
If you’re looking to buy a foreclosed home, the purchasing process may be delayed. And you may have difficulty getting title insurance.
Page 1Page 2"