Title Insurance on a Property Bought at a Foreclosure Auction
Hey guys,
Has anyone tried getting title insurance on a property they bought in a tax or mortgage foreclosure by a quit claim deed? If so, who did you use?
The response I got in my area is that title companies won't insure title on such a property until the new owner holds it for 1 or 2 years after purchase. Has anyone been able to get title insurance sooner, specifically in New York State?
The intent behind the question is either a bank refinance or a re-sale to a buyer using conventional financing (i.e. both of which require insurable title). Thanks!
Vitaliy
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
Mtg foreclosures and tax auctions are two different animals.
Generally you can get title insurance immediately after a mtg foreclosure, absent any redemption periods, and assuming it was a 1st mtg, no HOA debts if they remain.
Tax foreclosures generally require either a Quiet Title action or an extended holding period, 2-5 years, which is state specific.