Title Insurance Coverage Narrowed For Properties Sold Through Foreclosure

28 Jun , 2021

To register for the upcoming live webinar, please Click Here

New York State is known for a lot things. Being lender friendly is not one of them. The foreclosure process (especially for home loans) is lengthy and laden with traps. It is also becoming quite onerous, as evidenced by the passage of a recent statute, which creates a significant new impediment to title insurance for home loan mortgages devolving through a foreclosure sale. The new statute, RPAPL § 1302-a, effective December 23, 2019, provides, in essence, that the defense of lack of standing is no longer waivable where the mortgage is categorized as a home loan, even though a defendant neglected to raise the defense in a pre-answer motion to dismiss or in a responsive pleading. If a defendant appeared, their ability to raise the defense continues to the moment when the hammer falls at the foreclosure auction sale. But if a defendant did not appear, then the ability to pursue the defense survives the foreclosure sale, lurking to assault the foreclosure sale title for what is a potentially uncertain duration. It is this unpredictable exposure which understandably makes title companies more than timorous to insure foreclosure sales, and which not, incidentally, creates problems for foreclosing lenders and foreclosure sale bidders.

To register for the upcoming live webinar, please Click Here

More Webcasts

The Impaired Lawyer ...

Recent studies have shown that there has been a dramatic increase in impairment due to alcoholism, a...

What New York State ...

On March 31, Governor Cuomo signed into law the Marihuana Regulation and Taxation Act making New Yor...

Tales from the Trenc...

Hear from counsel and an expert on best practices from what to ask when selecting an expert, how ear...

Litigation Buyout In...

As the country rebounds from the COVID-19 pandemic, M&A activity is poised for a strong comeback...

Counsel Fee Awards t...

Before 2010, the non-monied spouse was subject to the considerable discretion of the trial courts in...

10 "Shocking" Tips f...

10 "Shocking" Tips for Staying Out of Trouble on Social Media remains a must-hear presentation on th...

Important COVID-19 V...

The COVID-19 vaccine is now available and employers need to know how to manage their workforce throu...

Paying the Piper: PP...

This presentation will begin with a retrospective assessment of the CARES Act legislation and relate...

Substance Abuse, Chr...

For over a year, our profession has been on the front lines of seismic societal changes and disrupti...

Current Attempts to ...

In March 2021, John McAfee was charged by the DOJ with fraud and money laundering in connection to h...