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Bankruptcy is now a common place problem in title commitments.  The reality is that your title company needs to have experience in cleaning up these problems.  Most often you will see a bankruptcy issue in the chain of title when purchasing an REO (a bank owned property).  The right measures to take when seeing a suggestion of bankruptcy in the chain of title is to first go to the bankruptcy website known as Pacer to look up the docket and view the documents that were part of the bankruptcy.  Reviewing the file to make sure that the foreclosing comapny did there job properly is so important to avoid title issues in the future.  If you find yourself buying an a bank owned property where you can select your title agent then please call us so that we can help guide you through these often tricky transactions.  The bank certainly has a lawyer looking out for their interest so you should have one too.

 


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