You already experienced the thrill of the hunt. You found the perfect home, negotiated a price and terms you can live with and now you are in the escrow phase. This is the time during which you as the buyer have brief flurries of activity but mostly your transaction is moving forward without your help or participation.
One of those “behind the scenes” activities has to do with title insurance. Title insurance is designed to protect the insured against defects in title that arise from things like improper titling (think about the recent news related to robo-signing foreclosure documents), forgery, or impersonation where no legal title has been conveyed. Title insurance also protects against partial defects like fence or garage wall encroachments.
Title insurance companies have recently set down strict guidelines as to when and if they will issue a policy for a foreclosed property.
If you are financing your new Tehachapi home, the lender will insist on a “lender’s title policy.” The title policy protects the named insured, in this case the lender. As the buyer, you should be at least as vigilant as the lender. Insist on a 60 year search and get a buyer’s policy to protect you as well as the lender’s policy.
Check this article about delays in purchasing foreclosed properties as a result of title issues.