Home Buying in Colorado>Question Details

John, Home Buyer in Colorado

While under contract to purchase a previously foreclosed REO house, the title company notified me that the

Asked by John, Colorado Wed Jun 4, 2008

foreclosing firm is filing an omitted party claim because they were not niticed on the original mailing list. We were hoping to close in a couple weeks. What is going to happen now?

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I wanted to provide a quick update based on additional info. The title company that issued the policy through the foreclosure sale is liable for the omitted party claim. Your new title company will not issue a title policy until that first claim is paid off.
Web Reference: http://www.StuartDobson.com
0 votes Thank Flag Link Thu Jun 5, 2008
Hi John,

This is a tough question to answer because there could be a variety of outcomes. Additionally, no Realtor will want to be 'on the hook' for legal advice if the outcome doesn't go exactly as predicted here. I'm not trying to give you the wimpy 'ask and attorney' answer...but there are many variables.

How big is the claim? Will they settle? Who is going to pay to fight the claim? What is your broker telling you to do? Who have you gotten advice from so far?

If you do need or want a good real estate attorney recommendation, I can get one for you. But they are going to want some specfics as well.

thanks and good luck.

Stuart
0 votes Thank Flag Link Wed Jun 4, 2008
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