Hypothetical question

[stellapena]

What is the name of your state? Florida

Please tell me if this would constitute a defective title:

1. Home is up for sale at auction through the court.
2. Some hours before the sale, the "defendants" in the foreclosure case quit claim the property to a third party (not a party in the foreclosure).
3. The home is foreclosed, and the defendants are evicted by the new holders of title.
4. The new title holders sell the property to another party.
Does the third party (the one with the quit claim deed) have the right to claim to the new owners' (described in #5) title insurance policy?

Just wondering.

Also, please answer if you know anything about a class action lawsuit against Ocwen Federal Bank. Thanks.

 

[HomeGuru]

What is the name of your state? Florida

Please tell me if this would constitute a defective title:

1. Home is up for sale at auction through the court.
2. Some hours before the sale, the "defendants" in the foreclosure case quit claim the property to a third party (not a party in the foreclosure).
3. The home is foreclosed, and the defendants are evicted by the new holders of title.
4. The new title holders sell the property to another party.
Does the third party (the one with the quit claim deed) have the right to claim to the new owners' (described in #5) title insurance policy?

Just wondering.

**A: the Trustees deed would transfer title to the new Buyer and extinguish the rights of all other titleholders. The quit claim deed would be considered a fraudulent transfer by the foreclosing lender, the foreclosure Trustee and the court.
**********

Also, please answer if you know anything about a class action lawsuit against Ocwen Federal Bank. Thanks.

**A: yes somewhat.