Saturday, May 12, 2007

query: will title insurance reveal a previous buyer foreclosure

The answer is possibly.

Foreclosure actions are filed at the courthouse. An abstractor searching title who finds a foreclosure on another property in the same county may report it to the title insurer.

Since the foreclosure does not affect title to the property in question, it's unlikely that a title insurer would cite it in the title commitment.

So, there is a chance that a prior foreclosure might be included in a title commitment schedule B1, even though it has no impact on the property in question, but the odds are against it.

It is more likely that a buyer's prior foreclosure will turn up in a mortgage credit report.

No comments: