Lack of title insurance could slow foreclosure sales

October 21, 2010

USA Today reports that Old Republic National Title Insurance is no longer insuring titles to any property foreclosed by Chase or GMAC. Why? Because both mortgage servicers stopped foreclosure sales in 23 states because some legal filings may have not been properly verified or notarized.

Bank of America has also said it will stop foreclosures in those states.

So what are the ramifications of this? Because the legality of the process is being questioned, homeowners could try to claim they still own their home, even if someone else buys them in a foreclosure sale, Florida lawyer Mark Stopa told USA Today.

Rafael Castellanos, managing partner here at Expert Title, contributed to the article: “It is possible for a homeowner to come back and stake a claim to their property.”

But according to USA Today:

“The American Land Title Association (ALTA), which represents title insurers, says possible flaws in foreclosure documents should have little impact on buyers of foreclosure-sale homes because they can argue they bought the home in good faith and the law protects them.”

We will certainly keep our readers posted as to any developments in this undoubtedly complicated story.

This post is brought to you by the good folks at Expert Title Insurance Agency. We would love to connect with you on Facebook and Twitter.

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3 Responses to Lack of title insurance could slow foreclosure sales

  1. Mold Removal on February 7, 2011 at 9:06 am

    Wow! Thank you! I always wanted to write in my website something like that.

  2. Pissedoff on March 9, 2011 at 8:01 pm

    Eric Beveridge is a jerk and unprofessional. Do not work with Eric Beveridge as a title office if you can avoid it. Eric Beveridge is new to the industry and does not have the knowledge necessary to complete a title transaction. I used Eric Beveridge for my home purchase and was sorely disappointed.

  3. Carpet Cleaning on March 15, 2011 at 12:19 pm

    Things like this are still very amazing to me. Thank you for sharing.

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