Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

TITLE INSURANCE STOPPED ON REO AND FORECLOSURE SALES
Most of you have been reading about "phony documents" or "fraudulent documents" from lenders in the foreclosure process. Those documents are the affidavits used to obtain a judgment from a court so a foreclosure sale can occur.
I first wrote about this several days ago in GMAC SUSPENDS FORECLOSURE OPERATIONS - JUDGMENTS MAY BE VOIDABLE.
If a material document relied upon by the court in making its decision to render a foreclosure judgment (and have a foreclosure sale) is knowingly false, it is a "fraud upon the court" and attackable at any time by any party affected by the court order.  This can happen years later.  The result could be a setting aside of the foreclosure sale and foreclosure judgment by the court.
Many properties sell either to the lender or to third party bidders at the foreclosure sale, and if there is later a set aside judgment, the title to the lender or third party becomes invalid.
Title insurance underwriters naturally do not want to place insurance where they know there is a high likelihood that there will be litigation over the matter being insured.  As a result at least one major title insurer has announced today that it will ... more

__________________________________________________
Are you on The Rain? Grow Your Network!