We are under contract to purchase a bank owned home. The first title company used by the sellers group (Provident Funding) would not issue title
insurance. Instead, the title insurance will be offered by the "Original" title company on the property. We are told that the title company will issue title insurance on the property, equivalent to an "Eagle Policy". There is a suit still pending against the sellers and original owners. What should we be concerned with?
The Lis Pendens has survived because the lawsuit was filed prior to the foreclosure. The original owner and bank are on the hook for it. The ALTA policy being offered seems to cover (hold-harmless) us. We hope to close soon, thanks for all your help.
An Eagle Policy is sufficient enough. Do you know what type of law suit is still pending? It seems odd that both the seller and original owner are getting suied. Unless you are referring to the Bank trying to go after the original owner for deficiency...Either way, you are entitled to call the title company directly and ask the questions yourself or have your agent do it for you. Even if bank is making you go with their title company, they have a ficuary duty to be a neutral party and tell you what is up. Hope this helps!
This is definitely a RED FLAG. I would find out what is going on with the title. There is some kind of cloud on the tittle that could not be removed in the foreclosure process. It could IRS or State tax Lein that may stay with the property after foreclosure. I would talk to a Real Estate Attorney before you sign closing documents.
Greg Jensen, e-Pro
Prudential Utah Real Estate, Huntsville, UT
Cell: 801-791-9104
Home Office: 801-745-2456
Fax: 877-686-4733
website: http://www.UtahMountainHomes.com
EMail: greg@UtahMountainHomes.com
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