Thursday, July 19, 2007

query: I have a problem..a judgment was entered between the date of closing and the date the deed was filed

If you purchased owner coverage, the problem is the title insurer's. Gap coverage will protect you between the date of closing and recordation.

Look at the HUD-1 settlement statement to find out if owner coverage was purchased. The HUD-1 provides evidence of payment even if you haven't yet received the owner policy. The title premium will be in the 1100 section of the HUD.

If you did not pay for an owner title policy, yes, you do have a problem because the judgment may have attached to the property.

If you are not satisfied with the information you are receiving from the company who handled the closing, you may wish to contact the state insurance department or an attorney.

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