Tip 45-2010: Don't Be Afraid of REOs

In the last several months, there have been many news stories about alleged fraud and mishandling by banks in their foreclosure procedures.  For a while several banks even postponed all their foreclosures.  Now there are rumors that title insurance companies will not issue title insurance for Purchaser's of foreclosed properties.

These rumors are not true!  All of our local title insurance agencies are currently issuing full owner's title insurance polices on bank foreclosed properties.  With a full title search by a local title insurance agency, a Purchaser can be guaranteed that the foreclosure was conducted properly. (Remember - Do No Accept the REO free title insurance; the Purchaser should have their own independent title policy.)

Foreclosures in Virginia are not as difficult and complicated as the judicial foreclosure procedures are in most states.  There are definitely some excellent deals available on REO properties.  With a proper title search by a local insurance company and scrutiny of the actual foreclosure process by an experienced real estate attorney, the Purchaser of an REO property will be fully protected and insured.

Please contact us if you have questions or need legal advice.

Senior Partner

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBLaw.com
www.TGBLaw.com

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