Title Insurance Issues For Foreclosing Lenders

Lexology reports:

• Lenders who make loans secured by real estate routinely obtain a loan title insurance policy insuring their lien position. Owners of real estate routinely obtain an owner’s title insurance policy insuring their title to the property.
• But what about when a lender becomes an owner by foreclosure or deed in lieu of foreclosure of their insured deed of trust? Can a lender rely on its loan title policy to insure its title to the property? If so, then should a lender rely on its loan policy, or should it obtain an owner’s policy?

For more, see Lenders taking title by foreclosure or deed in lieu: the advantages of obtaining an owner’s title insurance policy (requires subscription; if no subscription, GO HERE, then click appropriate link for the story).