There are people poking around, some brave, some uninformed who are buying foreclosed property. THEY COULD BE BUYING INTO TROUBLE.
Think title insurance will protect you? Think again. There are so many complex reasons why this simply is not so in the context of foreclosure cases, but the bottom line is…..YOU CANNOT COUNT ON TITLE INSURANCE TO PROTECT YOU FROM A FAULTY TITLE.
Think your realtor or title company will protect you? NEITHER YOUR TITLE COMPANY OR REALTOR CAN BE HELD LIABLE IN MOST CASES FOR TITLE PROBLEMS.
What does this mean? From the Huffington Post:
Buyers of property at foreclosure are looking for a bargain, but that risk now must include the possibility that the title will be defective. One unsuspecting family purchased a home at foreclosure, intending to sell it to their daughter, only to have a title company question whether they acquired good title after they’d already invested $100,000 in renovations. (Nightmare in Land Court, Mass. L.J.) In the wacky world of securitized mortgages, who owns the mortgage is a ‘shell game’ worthy of the most accomplished back-street hustler. How securitized mortgages caused the collapse of the American economy is an oft-told tale that needn’t be repeated here.
