That’s good news for everyone thinking about buying a foreclosed home. And for those who recently did so.
Large titles companies (National Fidelity and First American among them) have decided that requiring banks to indemnify them against all errors in foreclosure proceedings for ALL loans was too much. They did agree that some may still require such action. It seems that neither the Title Companies or the Banks could agree that all such transactions warranted the maneuver.
“There was not enough consensus both within the lender community and title-insurer community to go [the way of total indemnification],” says Peter Sadowski, Fidelity’s chief legal officer.
Kurt Pfotenhauer, CEO of the trade organization American Land Title Association, says as long as title insurers continue to have confidence in traditional lender underwriting, indemnification wont be necessary. But that could change if “there were further dramatic revelations of systemic problems,” he adds.
Source: The Wall Street Journal, Nick Timiraos (10/29/2010); Realtor® Magazine by NAR
For a complimentary list of Foreclosed home in your area of interest please send your email address and area of interest to: f.list@YubaSutterHomesAndLoans.com.