A title claim can happen from an individual, lender, or government entity asserting an interest in your property. One of the most common reasons this could occur is if the previous owner missed a mortgage payment and the lender is looking for compensation. In this situation, the lender will file a claim for your property in hopes of getting a return.
When a title claim is sent to your property, don’t ignore it. It is a claim against the property, not you. If ignored, it could lead to possible foreclosure and your property being taken away. If a title claim is sent to you about a previous owner, title insurance can help resolve the issue between the lender, so you do not have to pay for the former owner’s mishaps. There are many scenarios where a claim could be sent to your property. It is essential to keep an eye out and keep records of property changes and mortgage payments, and if you need more assistance, reach out to a real estate attorney.
Common Causes of a Title Claim: