All Forum Posts by: Peter Walther

 Your attorney should be able to review the pleadings and determine the status of the foreclosure and if the Borrower raised any defenses in the litigation.  However that doesn't mean that when you try to evict the occupant(s) won't raise defenses that should have been raised in the foreclosure.  Sometimes the eviction court will enter an Order of eviction anyway but I've seen eviction courts decide that if the argument is over title they don't have jurisdiction and dismiss the eviction action.  Talk to your attorney for his/her advice.

You should be able to get a title insurance but it will probably have an exception for parties in possession of the property. All to frequently the Borrower claims the foreclosure is defective because of some defect in the proceedings. I've often seen situations where the Borrower/Defendant claims the foreclosure did not extinguish their interest in the property and they are entitled to remain in the property. Often I see an REO sale on line where the bidders are told not to disturb the occupants. Nothing screams problem when the seller tells you someone is in the property post foreclosure but please don't bother them. Several of the national policy issuing title agents are owned by a mortgage servicing company that has a vested interested in getting someone to buy the property knowing there's someone in the property but assuming all they have to do is bring an eviction. It happens all the time.

If your daughter is represented in the divorce (s)he would be in the best position to advise your daughter.  I think the disposition of the property would be part of the marital settlement agreement.

Yes, it's my understanding junior interest that are properly properly noticed are extinguished.  Municipal, state and federal liens are not.  I'm not an attorney and this is not legal advice.  I would strongly recommend you invest the time and money speaking with a competent NJ attorney to understand the process thoroughly before bidding.  Good luck. 

Anne the problem is that if you bid and win you take title subject to any matters not extinguished by the sale.  The sale will only extinguish matters which are junior to the creditor asking the Sheriff to sell the property matter that have been properly served.  Unless there is a defect in the sale process itself you don't get to have the title searched and examined after the sale and then back out if you don't like it.  Have you spoken with the attorney and title agent about what you get for your money?

You're absolutely right Deanna, overlaps between property descriptions happen all to frequently, often as a result of different surveyors using different reference points when doing the field work on neighboring properties.  On the other hand, I once worked on a title claim where a dozen houses were built straddling lot lines because the original surveyor came off the wrong marker when surveying the lots.

It is just as easy to forge a signature on a Warranty Deed as it is a Quit Claim Deed.  Is Wayne correct, is this property being auctioned rather than a traditional sale?  He's correct that if it is an auction and you win the bid you'll probably get a Special Warranty Deed from the Grantor.  That type of deed limits the Grantor's liability to any infirmities in the title created by the Grantor, much less protection than a WD.  In addition, even with a WD the indemnification is only as good as the party giving it.

The old adage that you get what you pay for holds true here.  First, searching the title is only one variable, the other is the examination of the instruments that are found.  Unless you have extensive experience searching and examining titles in there county where the property lies I'd recommend you don't try to do it yourself.

I assume the attorney is offering to search and examine the title and issue you an attorney's opinion of title and the title company is offering to sell you a title report. If I'm correct, of the two I believe the attorney's opinion is better because the attorney and more importantly his E&O carrier, if he has one, would have liability for a covered loss you might suffer for relying on his opinion. The title report on the other hand, as I wrote earlier, probably has a nominal cap on liability for mistakes. I suspect that's why there's a difference in price. I may be mistaken and the title company is offering to issue a commitment for the $75 but you should confirm with both exactly what your getting for your money.

The reason I'm strongly recommending you get a title commitment is because if you bid on the property based on the attorney's opinion or a title report and win and later find out there's a encumbrance on the property which you weren't told about and was not extinguished by the Sheriff's sale then you can only look to recover your loss from the attorney or title company under the terms of the opinion or title report.  If you get a title commitment and rely on it to buy the property you should be able to recover a covered loss from the title insurance underwriter.  In addition, you'll want to be sure of what restrictions and easements will survive the sale and you would take title subject to.

I'm not an attorney and this is not intended to be legal advice, it's my opinion based on my years of handling title insurance claims across the country for various underwriters.  I hope this helps.

I've never been comfortable with the term investor friendly.  If you're looking for a title company that will bend or break the rules to help me the investor I assume they might bend or break the rules for someone else when I'm on the receiving end.  Search for title companies online and read the reviews, join a local real estate investor's group and see who they recommend.