If one thinks about it there is no reason for any title company to willingly do that. What is the upside gain relative to the downside risk? Your scenario seems a bit far fetched. The focus seems to be on the banks/lenders completing the foreclosure process using altered/false documents, etc.
Bottom line for the title companies is that the sale of foreclosed properties has slowed and the result will be less business. Lower housing prices result in less revenue as well.
Disclaimer: No position. Waiting for a lower entry point in conjunction with the housing market being at a point of maximum pessimism.