Title Insurance after Foreclosure
By: Steven J Baum
Law firm of Steven J Baum PC
If you have purchased a home at a foreclosure auction you have plenty to do before closing. You were the successful bidder, placed a deposit down and signed a contract of sale. Most likely you have a short amount of time to close. What is your next step? One of the things you need to do is obtain title insurance. Title insurance is issued by a company regulated by your state’s insurance department. The type of title insurance you are looking for is commonly called an owner’s policy. You may have purchased property that foreclosure law firm Steven J Baum PC foreclosed on in New York. Steven Baum attorney himself probably didn’t work on that file but he was a mortgage foreclosure lawyer in New York.
An owner’s policy insures the new owner who is taking title, that they have insurable title, subject only to those provisions, called “exceptions” that appear in the policy. For example, you will be insured for the price paid for the property (if you pay extra money you can get a market value rider which insures you for the market value of the property at the time of a claim). That is clearly a critical feature of the insurance policy. The exceptions are items that are filed in the public records that affect the property that you purchased. If there was a utility or cable easement on the property, it would be considered an exception.
If you hired a good lawyer they would attempt to find out where the easement was. Maybe the property was located in the State of New York. The residential foreclosure law firm, Steven J Baum PC and its top rated local foreclosure attorneys may have represented the bank that foreclosed. Most of these easements are near the perimeter of the property and won’t affect its use. This type of exception would not bother you.
How long is the owner’s policy good for? For as long as you own the property. It could be for your lifetime or a shorter period if you decide to sell the property. If anyone tries to come along and make an adverse claim against the property, the title insurance company would come in and defend your title. In the worst- case scenario which is highly unlikely, they would pay you the face value on the insurance or the market value if you purchased the market value rider previously referenced. If it is a residential property you wouldn’t need a commercial foreclosure law firm or commercial foreclosure lawyer to represent you. Instead you could higher a residential foreclosure lawyer or residential foreclosure law firm to order the title insurance for you. Top rated local foreclosure attorney Steven J Baum wouldn’t represent you as that could be a conflict of interest.
Legal Disclaimer: This article provides general information only. The information in this article is not and should not be construed to be legal advice. The transmission of the information found in this article and on this web page does not result in the formation of a lawyer-client relationship.