QUESTION
Riskiness of foreclosure title insurance exception
Asked on Jan 13th, 2014 on Real Estate - Nevada
More details to this question:
I am in the process of purchasing a property in Las Vegas, NV which was foreclosed on in Sep 2013. The title company (First American) is including this language in the policy exceptions list: "ANY IRREGULARITY IN THE FORECLOSURE PROCEEDINGS LEADING UP TO THE TRUSTEE'S DEED RECORDED SEPTEMBER 18, 2013 IN BOOK 20130918 AS INSTRUMENT NO. 0002698 OF OFFICIAL RECORDS." What are the risks of going along with such a policy, and would being a "Bone Fide Purchaser for Value" offer any protections for me? Thanks Loai
1 ANSWER
R. Christopher Reade
The risk is that the Title Company will not be liable to defend you against any claims for wrongful foreclosure and/or quieting title arising out of the foreclosure sale. Being a third-party bona fide purchaser for value does provide you with a good defense in any such action.
Answered on Jan 13th, 2014 at 11:12 PM