It’s tough enough when a homeowner can’t pay their debts and loses a home to foreclosure. It’s even more mind-boggling though when they are notified that it will happen for a previous owner’s debt:
Northern Virginia Housing Bubble Fallout
UK House Bubble
Bubble Meter
Mish's Global Economic Analysis
Ohio Fraudclosure
Breaking News Relevant Articles© Copyright 2012 Housing Doom | Copyright© 2011, AuthentiCraft, Inc.
Wow, that’s an awesome way for a title insurance company to handle things. “oops, YOU need to hire a lawyer.” I’m sure it helps keep the business profitable.
Igor says: sulky
On a different note, my In laws received a Notice of Default on a Home they sold 17 years ago.
Government loans, FHA/VA; are assumable but they do not release one of the liability.
In this case the buyer assumed the loan and paid it on time for 17 years until last year it went into foreclosure. The Bank sued with my in laws as defendants.
If Chicago Title is refusing to honor its policy, the loanowner may have a claim against it not only for the costs of defending the foreclosure action (and perhaps of the house if lost), but also for bad faith denial of an insurance claim. (Many states have special statutes addressing bad faith denial by insurers.)
It also sounds like they failed to note that there was an unsatisfied mortgage on the house – note to self, do not use Chicago Title under any circumstances.