Ok, so when you say note, you mean the actual IOU that was signed at closing? The paperwork the borrowers filed out is lost now, that’s at least part of the problem?
I’ve heard people say that this will be a nightmare for title insuarance? Why, I thought you only needed title insurance if you didn’t put 20 percent down. And aren’t people required to put more down now?
Sorry for all the questions, I just can’t seem to wrap my head around this.
Ok, so when you say note, you mean the actual IOU that was signed at closing?
-Yes.
The paperwork the borrowers filed out is lost now, that’s at least part of the problem?
-Yes. That is a BIG part of the problem. The banks have no legal right to foreclose WITHOUT that title.
I’ve heard people say that this will be a nightmare for title insurance?
-Yes
Why, I thought you only needed title insurance if you didn’t put 20 percent down. And aren’t people required to put more down now?
-This part I don’t know about. But I do know title insurance companies are already saying they will NOT insure these foreclosed on homes. Meaning, if you are buying a foreclosed home, you may not have full title to the home. The Title Insurance companies don’t want to insure something that there is no clear title on. I don’t think the down payment has anything to do with it.
-And questions are good. I have been trying to understand this implosion since 2008, and there is still alot I don’t know. Glad to help out.