The Real Deal Miami

How freeze could hurt title insurance

October 08, 2010 11:00AM

A short sale in Miramar

The unprecedented foreclosure freeze means that a number of judges are
now finding they must vacate foreclosure judgments — and attorneys have
started bringing actions to request that the courts return foreclosed
homeowners to their homes. All of this means that those who purchase
these homes are finding their contracts out the window. Another wrinkle
is that title insurers are now reluctant to issue title insurance. Old
Republic National Title Insurance announced it would not
write new policies for foreclosed homes that had been handled by the
four major lenders who froze their foreclosure activity last week. [Sun