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View Diary: The 'Cover Up' Is Finally Unraveling - Who Voted for HR 3808? (125 comments)

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  •  I remember reading a comment 2 or 3 (5+ / 0-)

    days ago, to the effect that one of the major banks had about six or seven carefully written disclaimers sprinkled through the paperwork they used when selling a REO property.  These statements made it clear that the bank was only selling their owned interest in the property.  If it turned out that a court would rule that the bank could not prove any ownership interest in the property at all, these statements would allow the bank to be not at fault for not being able to give the buyer a clear title.

    •  That is precisely why (8+ / 0-)

      The big title insurance companies are now refusing to write title policies on foreclosure resales, short sales, etc. No bank would loan any money to anyone for a home where title insurance could not be purchased.

      Though I suspect in the case of Wells Fargo they are using their own "captive" title insurance company in the transaction. That creates a problem for the borrower because the lender's title insurance is a sham. And the borrower's title insurance would be a fraud.

      Home purchases involving third party title insurance companies or originators would become highly problematic.

      Anyone purchasing a home should always have a legal representative that is acting in their interests in all transactions. This will serve to drive the prices of homes even further downward due to the upfront cost of retaining counsel and potential litigation that may occur through misrepresentations and malfeasance.

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