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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Title Exception Posted by Kristine-CA on January 11, 2010 at 6:08 PM In Reply to: Re: Title Exception posted by Kristine-CA on January 11, 2010 at 6:03 PM More research on this shows that BK exceptions are common. So, still wondering if the title company was triggered by knowledge that the previous owners filed BK....or are they just assuming that all trustee's deed need to be subject to the BK exception. Thanks, Kristine : Interesting. Is this one of the major national title companies? : Do you know if the borrowers filed BK after the foreclosure? Title companies used to be clueless regarding BK. Mine doesn't even have a PACER account to check the most basic things....like a BK filing. Obviously, title companies are seeing liability, and/or they are checking the filings.The language doesn't seem well crafted in that a "fraudulent" transfer indicates intent to defraud. A lender/trustee could mistakenly sell a property without knowing of the BK. Does that make it fraudulent. Invalid maybe. Unlawful maybe. Virtually any trustee's deed issued during a valid BK is going to be a problem. From just a couple of CA RE boards I'm seeing lots of problems with trustee's deeds, BK, recission. : I haven't seen this because I don't buy REOs or at sale, but I can imagine all title companies getting on board with this one. The BK wildcard exception. : : : My fellow investors. : : The title company we use in San Diego, CA is placing the following exception in their title policies for properties we purchased at the Trustee Sale: : : "Any claim or allegation that the trustee's deed or deed in lieu of foreclosure from QUALITY LOAN : : SERVICE CORPORATION to Yogi Bear, HUSBAND AND WIFE AS JOINT : : TENANTS , dated 10/21/2009, recorded OCTOBER 23, 2009 AS INSTRUMENT NO. 2009-000000 OF : : OFFICIAL RECORDS, was a fraudulent transfer in bankruptcy proceedings filed by or on behalf of : : (prior owner), HUSBAND AND WIFE AS JOINT TENANTS within one year : : from the date of 10/14/2009" : : I modified the above to protect the innocent. : : Has anyone else seen this type of Exception to the title policy? : : It obviously raised a huge red flag for the buyer, but we were still able to close after we explained the issue to them. : : If not, any recommendation on a title company that will not place this type of exception? : : Thanks : : Mer Follow Ups: Common Title Exception Rick, the Probate Guy 6:33 PM, 01/11/10 (9) Fanny Kristine-CA 8:20 PM, 01/11/10 (6) Re: Fanny MonroviaDave 8:40 PM, 01/11/10 (5) LeVon Helm says it's Fanny Kristine-CA 12:43 AM, 01/13/10 (1) Andy? Danny? Rick, the Probate Guy 3:07 PM, 01/13/10 (0) Re: Fanny MonroviaDave 8:41 PM, 01/11/10 (2) No it was - Take a load of Candy! CANDY! 9:53 AM, 01/12/10 (1) Take a load for free - take a load for me! - Free Candy who wouldn't sing about that!? CANDY! 10:12 AM, 01/12/10 (0) Re: Common Title Exception MonroviaDave 7:50 PM, 01/11/10 (1) Favorite Title Company Swan 6:36 AM, 05/29/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : More research on this shows that BK exceptions are common. So, still wondering if the title company was triggered by knowledge that the previous owners filed BK....or are they just assuming that all trustee's deed need to be subject to the BK exception. Thanks, Kristine : : : Interesting. Is this one of the major national title companies? : : Do you know if the borrowers filed BK after the foreclosure? Title companies used to be clueless regarding BK. Mine doesn't even have a PACER account to check the most basic things....like a BK filing. Obviously, title companies are seeing liability, and/or they are checking the filings.The language doesn't seem well crafted in that a "fraudulent" transfer indicates intent to defraud. A lender/trustee could mistakenly sell a property without knowing of the BK. Does that make it fraudulent. Invalid maybe. Unlawful maybe. Virtually any trustee's deed issued during a valid BK is going to be a problem. From just a couple of CA RE boards I'm seeing lots of problems with trustee's deeds, BK, recission. : : I haven't seen this because I don't buy REOs or at sale, but I can imagine all title companies getting on board with this one. The BK wildcard exception. : : : : : My fellow investors. : : : The title company we use in San Diego, CA is placing the following exception in their title policies for properties we purchased at the Trustee Sale: : : : "Any claim or allegation that the trustee's deed or deed in lieu of foreclosure from QUALITY LOAN : : : SERVICE CORPORATION to Yogi Bear, HUSBAND AND WIFE AS JOINT : : : TENANTS , dated 10/21/2009, recorded OCTOBER 23, 2009 AS INSTRUMENT NO. 2009-000000 OF : : : OFFICIAL RECORDS, was a fraudulent transfer in bankruptcy proceedings filed by or on behalf of : : : (prior owner), HUSBAND AND WIFE AS JOINT TENANTS within one year : : : from the date of 10/14/2009" : : : I modified the above to protect the innocent. : : : Has anyone else seen this type of Exception to the title policy? : : : It obviously raised a huge red flag for the buyer, but we were still able to close after we explained the issue to them. : : : If not, any recommendation on a title company that will not place this type of exception? : : : Thanks : : : Mer [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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