Buyers Beware of Foreclosures in The Chain of Title

While foreclosures in Florida have significantly decreased, many properties on the market still require review of foreclosure cases in the chain of title.  Third-party investors acquired properties across Florida at foreclosure sales, and are now selling these properties for a profit.  Unfortunately, some investors did not review the foreclosure file or perform a title search prior to binding at the sale and therefore did not discover errors made during the foreclosure action.  Purchasers should be cautioned to examine and review the foreclosure in advance of purchasing the property in foreclosure or post-foreclosure to make sure that title to the property is insurable and that any defect discovered through examination can be resolved prior to closing.