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Roger, Lawyer
Category: Real Estate Law
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Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Why would a Title Insurance Company be a Plaintiff (in addition

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Why would a Title Insurance Company be a Plaintiff (in addition to a bank) in a foreclosure sheriff's auction? Does that mean they are just owed a fee or is it some kind of title issue?

Welcome and thank you for your question. I will be the professional that will be assisting you.

Do you know if the title company had a lien on the property? Were they owed fees?

Customer: replied 3 years ago.

I don't see any lien from the title company from doing an online search of county records. I have not done a full blown (at the courthouse) title search.



That is odd. Were there any fees owed?
Customer: replied 3 years ago.

I'm not sure how I would know whether any fees were owed if there is no lien?

If there is no lien there should be no reason for them to be a named plaintiff in a foreclosure. In fact, only an HOA, a mechanic's lien and a deed of trust or mortgage has the power to foreclose.

Let me open this up to see if another expert has any idea why this would be the case.
Customer: replied 3 years ago.

Ok Thanks.

Hi - my name is XXXXX XXXXX I'm a Real Estate litigation attorney. Thanks for your question. I'll be glad to try and assist.

The most likely reason that the title company is listed is because the Mortgagee Title Insurance Policy (loan policy) protects the validity, enforceability and priority of the mortgage. Because it is obligated to protect the lender, the title company has a vested interest in making sure that the property is foreclosed under the mortgage that it has insured.

There could be some other reason for this depending on the facts of the case, but this is the most common/most likely reason the title company is a party.

I hope this helps, and please let me know if you have any additional questions.
Customer: replied 3 years ago.

THank you. One more question. Based on your response, why don't all or most foreclosures have a title company as a plaintiff in addition to the bank?




The mortgage company in this case must have some concern about the title or it's lien rights/lien priority.

Usually, title companies aren't involved, so there's likely some issue, and the lender has likely requested that the title company be involved to guarantee the debt in the event that there is an issue.

Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 30913
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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