Local Title Insurers Stop Insuring Foreclosure Sales
✉️ Want to forward this article? Click here.
![Local Title Insurers Stop Insuring Foreclosure Sales: Figure 1](https://assets.urbanturf.com/dc/images/blog/2011/04/foreclosure.jpg)
In May, a measure was implemented in the District that required lenders to enter into mediation with homeowners facing foreclosure prior to foreclosing on these individuals homes. The Washington Post is now reporting that due to this law two of the area’s largest title insurers have stopped insuring foreclosure sales because the validity of the foreclosure is too easily disputed, which in turn makes the holder of the title also subject to dispute. Without title insurance, lenders won’t provide mortgages to would-be buyers of the foreclosed properties.
The article notes that one of the main issues with the regulation is that it does not explicitly spell out how a foreclosure sale would be certified by DC, putting a good deal of the liability for the validity of the sale on the title companies rather than the city.
From The Post:
First American Title Insurance and Fidelity National Title Group argue that the new regulations make it more likely that someone could challenge the validity of a foreclosure sale, forcing them to pay or defend claims in court. First American and Fidelity have 50 percent and 28 percent of the D.C. market respectively, according to data from American Land Title Association.
While both the title insurance companies and the DC government agree that changes to the bill are needed, it is unclear how or when they will reach a compromise. In the article, Frank Donnelly of the Mortgage Bankers Association of Metropolitan Washington warns that if the regulation is not changed, many of the area’s other title insurers will follow suit, which could effectively halt the sale of foreclosures in the District.
See other articles related to: the washington post, title insurance companies
This article originally published at https://dc.urbanturf.com/articles/blog/local_title_insurers_stop_insuring_foreclosure_sales/3776.
Most Popular... This Week • Last 30 Days • Ever
![Buying with Friends: What You Should Know](https://assets.urbanturf.com/dc/images/blog/2010/05/home_value.jpg)
Here are some precautions to take before buying real estate with a buddy.... read »
![$10 Million McLean Home Of Former Nationals Star Stephen Strasburg Finds a Buyer](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/VAFX2180246_45_0_image_560x420.jpg)
The six-bedroom home listed for just south of $10 million back in June went under con... read »
![16-Story, 325-Unit Building Pitched For Arlington's Wilson Boulevard](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/2500-wilson-1_image_560x420.jpg)
The new project will take the place of an obsolete office building in Courthouse.... read »
![Mayor Bowser Announces First Office-To-Residential Projects To Receive Tax Abatements](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/1625-mass-1_image_560x420.jpg)
The three office-to-residential conversion projects have been conditionally awarded t... read »
![500 Apartments, Live/Work Units And A Park: The New Plans Coming To St. Elizabeths](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/parcel-6-park_image_560x420.jpg)
The plans for one of the final parcels at DC's St. Elizabeth's East campus are beginn... read »
- Buying with Friends: What You Should Know
- $10 Million McLean Home Of Former Nationals Star Stephen Strasburg Finds a Buyer
- 16-Story, 325-Unit Building Pitched For Arlington's Wilson Boulevard
- Mayor Bowser Announces First Office-To-Residential Projects To Receive Tax Abatements
- 500 Apartments, Live/Work Units And A Park: The New Plans Coming To St. Elizabeths
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro