Foreclosure issue (MA) But Title will get insured (insurance, attorney, contract)

[rasengan]

Reference to this thread: //www.city-data.com/forum/real-...e-case-ma.html

I think I may have posted the old thread in the wrong forum. I didn't realize there was a Foreclosures forum in here. Anyways, my issue is I got a commitment letter and the same day my Attorney calls me and tells me the title search has found issues. This issue is explained in the Ibanez vs US.Bank case in 2011 that went to the Supreme Court in MA. Basically, the Supreme Court in MA said foreclosures done with missing assignments are voidable. The current place I am trying to purchase was already sold to a third party (borrower) after the foreclosure. The foreclosure was done in 2008 but the 2011 Supreme Court decision was applied retroactively affecting all past foreclosures. The caveat here is that the current owner purchased burrower's title insurance in 2008 which means that the title even though clouded will come with title insurance if I do purchase it. So at this point, Title Insurance company says they will provide a clean title policy (because they are already on the hook with this title) which means my Lender will approve the loan. My attorney is telling me now that it's basically my decision to go for it or to terminate my contract to purchase this place. I asked about how can the title be cleared and my attorney mentioned that there's a Senate Bill 830 (Bill S.830) that will clean all these titles if it gets approved and that the Title insurance company will provide a letter of Indemnity and Undertaking. However, these two fixes do not have a time limit...it may take a few months... to YEARS...which will affect me if I need to sell this place in the future because I cannot be guaranteed that any buyers will want to buy this place with this defect on the title. What do you guys think? Is it NOT worth the risk EVEN with a clean title policy?