Is It Safe to Jump In?

There is a lot of concern and conflicting information out there that surround Truckee short sales and foreclosures.  Part of that mis-info comes from the fact that it has been a moving target since the outset.  There really has been little rhyme or reason to process or the timing.  Each bank does it different, and the shear volume of these transactions that the banks are facing is daunting.  One question that buyers have been asking me is, “is it safe”.  There has been some talk out there in the media about folks who’ve lost their homes coming back on the banks for improperly foreclosing.  I’ve done a little research, and asked around, and here is what I’ve surmised.  If you purchase a home at the court house steps, you don’t have many guarantees about what liens, and issues may be “hiding” in the closet of your new home.  If you purchase a home in Truckee that is listed for sale, you will most certainly be purchasing title insurance.  Title insurance is not typically given much consideration, but more of a nebulous cost associated with buying a home.  But the reality is that a title company is insuring clear title to your purchase.  If there were to be an issue in the future, you have purchased insurance, guaranteeing your title to the home, or insuring compensation for the “cloud” if an unknown claim to your clear title were to surface.  I’ve also read that in the unlikely event of a bank making a mistake in filing and ultimately executing a foreclosure, that the courts would not void a sale and remove a new buyer from a home.  More likely, awarding damages from the bank to the foreclosed previous owner.  I’M NOT AN ATTORNEY.  You should contact one, and also question a reputable Title Company about what they insure, and if you are protected given your scenario.  If you’re insured, you should be safe.

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