DO YOU OWN THE FORECLOSURE YOU BOUGHT!

Thirty one percent of all homes purchased in the first quarter of 2010 were foreclosures, over the twenty nine percent for all of 2009. Buyers that have purchased a property in the past few years may wonder if they really own the foreclosure they purchased. After all, if the home was inadequately handled, the previous owners may just have a lawsuit ready to file against the lender and the attorneys that dealt with the foreclosed property. The advice from the legal side admits to such purchasers loosing there homes or could be liable for financial compensation to the buyer foreclosed property . Attorney Jonas Jacobson comments, "The biggest protection is the 'Bona fide purchaser' law that protects buyers from getting in trouble if they could not have known there was a problem with their purchase" Due to foreclosure paperwork mistakes, there is little danger of homeowners losing homes" says Steven Horne, an attorney and president. He also states there is a small chance that a homeowner can and may be involved in a lawsuit concerning there foreclosure.



The fear for buyers is minimal, yet there is an importance when it comes to protecting yourself with the purchase of a foreclosure. According to attorney Joseph Gentile, a wrongful foreclosure is the perfect example of why home buyers should buy owner's title insurance, which directly protects the owners in a title dispute. Owner's title insurance protects from any defect in the title. Gentile explains, " If a judge determines the foreclosure was not valid, the title company would have to work out the problem, not the homeowner" Homeowners should always know there title insurance status. Gentile recommends purchasers to check for the title insurance policy, especially if you have bought your foreclosure in the last few years. You still have the option of purchasing owners title insurance now, even on the property you previously purchased. Jacobson recommends homeowners review their settlement documents and contact their settlement attorney for reassurance.



Gentile also comments on the future sale of the home, " It is possible when the home is sold, a new title insurance policy would be more difficult to obtain." With the growing amount of foreclosures, the title companies will likely find a way to accommodate insurance in the future.