After Foreclosure, a Focus on Title Insurance
By RON LIEBER
Published: October 8, 2010
When home buyers and people refinancing their mortgages first see the itemized estimate for all the closing costs and fees, the largest number is often for title insurance.
This moment is often profoundly irritating, mysterious and rushed — just like so much of the home-buying process. Lenders require buyers to have title insurance, but buyers are often not sure who picked the insurance company. And the buyers are so exhausted by the gauntlet they’ve already run that they’re not interested in spending any time learning more about the policies and shopping around for a better one.
Besides, does anyone actually know people who have had to collect on title insurance? It ultimately feels like a tax — an extortionate one at that — and not a protective measure.
But all of the sudden, the importance of title insurance is becoming crystal-clear. In recent weeks, big lenders like GMAC Mortgage, JPMorgan Chase and Bank of America have halted many or all of their foreclosure proceedings in the wake of allegations of sloppiness, shortcuts or worse. And a potential nightmare situation has emerged that has spooked not only homeowners but lawyers, title insurance companies and their investors.
What would happen if scores of people who had lost their homes to foreclosure somehow persuaded a judge to overturn the proceedings? Could they somehow win back the rights to their homes, free and clear of any mortgage? But they may not be able to simply move back into their home at that point. Banks, after all, have turned around and sold some of those foreclosed homes to nice young families reaching out for a bit of the American dream. Would they simply be put out on the street? And then what?
The answer to that last question may depend on whether those new homeowners have title insurance, because people who buy a home without a mortgage can choose to go without a policy.
Then there is a glimpse behind the scenes …
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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
I just wrote a little book entitled
“SACCHARIN SWEET AND SLEAZY
JUDGE ALICE SCHLESINGER
OF NEW YORK SUPREME COURT
PERPERTRATED TITLE FRAUD
with
THOMAS MALONE OF FIDELITY NATIONAL TITLE
and
DAVID K. FIVESON OF CORONET TITLE”
on a similar issue. In my case the title attorneys knew they insured forged titles but never thought I would be able to unravel the scam.
As I once said, I wrote a simply letter to William P Foley of Fidelity National Title “What went wrong that your Attorney Thomas Malone finds hinself fighting for a Forged Deed?” and their reply to me was “It is proper to fight”
After Astoria Federal S & L Successor in Interest to Fidelity NY FSB stated in front of Judge Schlesinger It’s INDEMNIFY, INDEMNIFY, INDEMNIFY, we are stepping aside and the title companies are stepping in. The title companies did not want to indemnify but want to be Intervenors and be heard, and what they told Judge Schlesinger is time makes a forged deed good and
“WE HAVE EQUITY” and Judge Schlesinger’s eared perked up, she looked at me and said It doesn’t look good for you and ruled against against the law.