Recently, officials at GMAC Mortgage, a division of Ally Financial, Inc., JP Morgan/Chase, and most recently Bank of America announced that they are halting evictions of foreclosed borrowers and are halting REO sales in 23 states, including Florida.
In fact, several [title insurance] agents have reported receiving written cancellation of pending transactions involving these lenders. Accordingly, Old Republic policies may not be issued insuring REO sales after completion of foreclosure by these two lenders.
There is no prohibition on writing title insurance on short sales or following a deed-in-lieu of foreclosure involving these lenders or any prohibition against insuring titles where a mortgage foreclosure by Ally Bank/GMAC, JP Morgan Chase or Bank of America appears in the back chain of title.
Filed under: Foreclosure, Real Estate and Business
