How Title Insurance Works on Foreclosed Properties.
There is a lot of media attention lately to purchasing foreclosed properties. This can be a great way of purchasing more home for your money. From a title insurance viewpoint, this transaction is only slightly more complicated.
As a title company, we always insure to buyers and sellers that there are no outstanding liens on the property. In a foreclosure situation, we do an additional search. This is called a “Name and Party Search”. This allows us to insure that there are no outstanding personal liens on the property, such as a lien from the IRS or State Treasury.
It is critical to track the chain of title through the foreclosure and redemption process to make sure that there are no gaps. Once this is done, the closing is handled normally and the title insurance policies are issued.
It is important to have an experienced realtor and lender to guide you through this process.
Please watch for future updates on the status of the market and what your title company can do to assist you.
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