Legal Question in Real Estate Law in California

Problem with Insuring Property Title

Recently purchased a pre-forclosure property. The owner said that she was in bankruptcy, but was not anymore at the time of our conversation. We did an equity purchase, closed and while going thru refinance found out that Title company would not insure the Title, because of the bankruptcy. Title is being held by the bankruptcy court. What is the best way to proceed in this situation?


Asked on 3/12/04, 10:42 pm

2 Answers from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Problem with Insuring Property Title

It sounds as if you didn't do a title search on the property. While you may have a case against the individual, if the bankruptcy court already had title or jurisdiction over the property, you may be out of luck as far as they are concerned. Furthermore, if you did not immediately record a deed, the BK court could have precedence over yours, even if you had made the purchase prior to their recording of the lien.

Bottom line is, buying forclosures or properties in forclosure is not as easy as the "get rich quick" seminars make it look.

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Answered on 3/13/04, 2:41 pm
Christopher M. Brainard, Esq. C. M. Brainard & Associates - (310) 266-4115

Re: Problem with Insuring Property Title

I need to see the paperwork. I think you have a case. Contact me for a free consultation at 310-266-4115. Sincerely C. Brainard

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Answered on 3/12/04, 11:34 pm


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