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Fidelity National Financial, Inc. Message Board

  • loueye loueye Oct 6, 2010 9:31 AM Flag

    New ugly FNF exposure on forclosures...

    Houses purchased out of foreclosure may have defective titles!!!

    Unlike the actual foreclosure, this is ABSOLUTELY something that FNF will have to cover and mitigate.

    I bought a bank foreclosure that is determined to have been an illegal foreclosure, the original owner sues the bank to regain title... FNF reviewed. approved and insured my rights to the title.. My right to the property is now challenged... Who pays??? FNF!

    Time to cut losses.. I'm OUT!

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    • As I've said many times on this board in several posts, the court approved the foreclosure and the buyer relied upon that approval in "Good Faith". Therefore even in the unlikely event that the court were to recind it's foreclosure approval it would require the lender to make the buyer whole. It's as simple as that.

      Even if an original owner was so stupid as to sue for his property back and actually won - which is very unlikely - all he or she would gain is a mortgage that is still underwater and have to go through foreclosure all over again.

      By the way, I've recently purchased 7,750 very cheap shares because of all the confusion over this issue.

    • I never said anything about them having "no losses" but I said they were minimal. Their losses will be mainly in the time they spend on these not in writing of claims checks.

      I don't believe for a second that you have already lost title to a house because of this issue! If you did then your title policy will cover you for that and the title insurer will recoup that loss from the lender who inappropriatly foreclosed.

      But I think his comments are actually a huge line of bull.

    • You apparently have not read the previous posts on this issue. The title company will have a responsibility to defend their insured, but they also have a right to seek recovery from the foreclosing lender. So all that will happen is that the title insurer will turn to the lender to correct their foreclosure. If for some odd reason the foreclosure is totally overturned and title is retured to the borrower who lost the property, their loan would be reinstated and the lender would have to return the proceeds from their sale to the purchaser. There will be no big losses to title insurers on this issue.

      • 1 Reply to jeffkc44
      • I did read them...

        I didn't interpret them as covering this topic...

        I'm the new owner of a home I bought out of foreclosure ... I'm about to lose my property due to a defective foreclosure.

        I had closing costs, moving costs, legal costs, taxes, etc...

        I'm going after the title company for approving the defective title, and let them get it back from the bank... (Good Luck trying to collect from your biggest and best customers FNF)

        There's no good outcome for FNF...

        I sold took a loss...

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