By Kimberly Miller
Palm Beach Post Staff Writer 

Florida foreclosure firm’s title insurer won’t insure firm’s foreclosure titles

The title insurance arm of one of the state’s largest foreclosure law firms is refusing to cover properties foreclosed on by its own attorneys citing potential defects in court filings.

New House Title, which is owned by the same people who run the Tampa-based Florida Default Law Group, sent notice to a Boca Raton real estate attorney Wednesday that a 2009 foreclosure was off limits.

What Attorney Robert Feldman found interesting in New House’s denial for the Deerfield Beach condominium is the foreclosure was handled by the Florida Default Law Group.

It is somewhat surprising that now they won’t even insure their own work,” Feldman said.

The New House email faults JPMorgan Chase for the rejection.

Chase is one of three national lenders, including Ally Financial Inc., and Bank of America, that has suspended some foreclosure proceedings to review and correct flawed documents that may have been used to take people’s homes.

“We have become aware of potential defects with affidavits submitted by the servicer, JPMorgan Chase or an affiliate, in foreclosure actions, which raise concerns about the insurability of the title of the subject property,” said the e-mail sent by Fran Morrison, a closing processor with New House Title. “Until these defects have been remedied, we are unable to proceed with the sale or closing of the foreclosed properties.”

Title insurance protects homeowners against financial loss from defects in the title, liens on the title or if the title is not what it is represented to be.

Rest here…