Effects of the foreclosure meltdown are in the news everywhere these days and as a reputable title company in the Tampa Bay area, we are focused on staying at the top of these stories. Here are some recent news articles that we have found to be a wide range of views on how the foreclosure landscape will effect things going forward.
And so foreclosures have come en masse, with the shoddy paperwork gumming up the works in ways few would have predicted. Complicating matters is the mistaken belief that title insurance can alleviate the uncertainties surrounding the purchase of a foreclosed home, as it gives the buyer protection against a faulty transfer. But there’s no guarantee that title insurance companies will provide insurance on these doubtful properties. Republic Title, for example, has said that it will no longer insure homes foreclosed by Ally Financial or JP Morgan Chase. read more about the article Could Foreclosure Fiasco Harm the Recovery? You Can Bet the House on It.
In this piece from the Washington Post, Zachary Goldfarb takes a look at how national title companies are going to be handling banking paperwork requirements and writing title insurance going forward.
A major insurer, Old Republic National Title Insurance, said this month that it would not back homes foreclosed on by J.P. Morgan Chase, which halted seizures in some states after paperwork problems surfaced. And Fidelity National has an agreement with Bank of America that the bank must sign warranties on every foreclosure sale, Sadowski said. read more from this Washington Post article Major title insurer insists lenders vouch for foreclosure paperwork
As of this point, no one can be sure of how this will all resolve, but one thing is certain, much more scrutiny will be going on in regard to how the banking industry is handling paperwork for one of people’s largest assets, their home.