Title Insurance would it cover this, Its a wierd story

[Holly Di]

Oregon.

I purchased a foreclosed property in 2/08. From a company who purchased it at the courthouse steps 2 weeks earlier.
I purchased title insurance and got a warranty deed upon closing on 2/26. The company I purchased it from was going to get the previous owner/occupant out of the house for me. At the FED hearing, the previous owner/occupant had filed a civil case against His loan co,& the Trustee that foreclosed on him. The FED was potentially going to be joined to that case. 30 days later we got a date with a Judge.

Judge decided that the previous owner/occupant could remain in the house during the pendancy of the case, and ordered that he paid a certain amount equal to rent.

fast forward, to August of 2009

1. previous owner's lawyer tells the lawyer that is representing the title company and me that his client is going to stay till the end of August with out paying any rent. (I finally had to get him out with another FED move out date was 9/20). Previous owner is judgment proof, and his parents have been funding the whole lawsuit. I am out 1 and 20 days of rent.

2. From 2/08 to 9/09 previous owner has dug under the house a marajuana grow room. I have proof that it was done after 2/08 - photos. He has caused damage to the foundation to the point the inspector says i MUST get an engineer in there to direct how to fix it.

3. He cut down one 30 year old pine tree in the front of the property

4. he cut all the limbs off one side of 60 year old trees in the front to facilitate a rope swing.

5. he limbed up a 20 year old pine tree in the back yard so it looks like a q-tip.

6. The market in 2/08 was still really hot. I could have fixed the house (it was in need of repair-mostly cosmetic at the time, but now,,,) and sold it for a profit of 60k more or less. Since the title was clouded with a lis pendance I also was unable to get regular financing on it, and also was restricted from selling it while the market was good. So I have a loss of favorable market conditions.

The title company paid for a lawyer to represent them and me. But he cant represent me alone against the title co for potential losses above. I have asked if he can ask them what they would be willing to come to the table with to help me recoup some of the losses above.


What part of any of the above would be covered by title insurance. I cant seem to get a straight answer, and conveniently, every time I ask for a copy of my title insurance, I never get it, I never got it in the mail after closing.

County Judge signed order 9/30 ordering the lis pendance removed, I had the judgment recorded. I thought we were done, but now previous owner/occupant has filed an appeal. However, my lawyer says he cant file a lis pendance, and until he files a supersedious bond I am free to do what I want with the property.

But, that means the title company may not be done with this case yet......


Thanks, Holly

[FlyingRon]

Title insurance doesn't cover the damages done by the former owner to the property. It should cover getting all the legal encumbrances taken care of. The word is "lis pendens" by the way. It's just the notice that a law suit is pending, you also have to make sure the suits are dealt with (and that further ones are going to be taken care of).

[nextwife]

Title Insurance insures that the condition of TITLE is as represented in the title resport. It does NOT insure property condition. Casualty insurance does that.

[Holly Di]

because the title wasn't clear, I was with denied from having enjoyment and complete ownership of the property. The court ordered that the former owner be allowed to maintain occupancy because the title was not clear. I was forced to have this person living in the house, No rental contract with land lord rights, NO ability to go in and inspect and maintain the property. I had no rights as an owner of the property.

While I was denied ownership after closing the damages occurred. Because the title wasn't clear I was denied the ability to sell, fix, and use the property.

I have a renters policy that i have had in effect since purchase. I am not sure tha this would be covered by this. It covers things like if you have a pipe break and water floods, not like a neglected leak that over 8 months causes huge damage.

I will call my renters insurance policy today. But, I am thinking that they wont cover this kind of damage.

Thank you for your attention to this

Holly

[nextwife]

Personally, If I were buying a foreclosure, I would have refused to close until the owners could transfer it unoccupied and cleaned out..