Many banks have recently admitted to possible "processing errors" in the last few weeks.  Although the majority of foreclosures have been done in response to defaults on loans, there is still a potential cloud of uncertainty hanging in the air.

If you were the buyer of a foreclosure that occurred within the last few years, you want to make sure you purchased title insurance.  If you financed the home purchase, you most likely will have title insurance.  If you are unsure, or it was a cash purchase - you want to verify you have the insurance by examination of your paperwork or through a call to the company who closed your home.

Title insurance protects the purchaser from defects in title to the property.  This will cover errors in the title due to improper foreclosure, or lack of traceability of the previous mortgage.  Both of these are potential problems right now.  If you have title insurance and a problem arises, your investment will be financially protected.

Additionally, in regards to those who have been improperly evicted from their homes - we have yet to see a precedent be set for recovery.  There is the potential for a court to give a home back to a home owner in this case, but it is highly unlikely.  In this case, I would expect the court to rule in favor of the previous home owner by awarding them a financial compensation in the form of cash.

About the Author:
Michael Blount Jr is a Realtor and the Broker of Blount Properties, living in The Woodlands, TX.  Michael is knowledgeable in both residential and commercial real estate and studies the market and trends to better serve his clients.  Michael serves the greater Houston metro area.  For more information - visit www.BlountUSA.com or search for Blount Properties on FaceBook.