Foreclosure Claims

January 6th, 2014

Signature has been notified of an increase in foreclosure-related claims which have been filed by the new insured owners who have purchased bank owned real estate or properties at foreclosure where such properties have not been vacated. The foreclosed mortgagors or their families remain in the properties after the foreclosure and refuse to vacate the premises claiming that the foreclosure is defective and the lender’s right to evict is, thereby, compromised.

Real estate professionals should confirm that the properties their buyers are purchasing have been vacated by the mortgagor/occupants or tenants by doing a walk-through of the property prior to closing.