"Foreclosure Warranties" May Be Required When Banks Unload Potentially "Crappy-Titled" REOs Onto Unwitting Public

Bloomberg News reports:

• Title insurers, banks and regulators are in talks to create warranties under which lenders assure they followed proper procedures before selling foreclosed homes, said Kurt Pfotenhauer, head of the insurers’ trade group. “Everyone sort of sees the same risks, and that’s the good part,” Pfotenhauer, chief executive officer of the American Land Title Association, said [] in a telephone interview. “You just have to craft a solution that’s acceptable to all the parties, and we’re making progress.”

For more, see Title Insurers in Talks With Lenders on Foreclosure Warranties.

Thanks to Bill Collins at Frontier Abstract, Rochester, NY for the heads-up on the story.