Lender foreclosure moratorium.

The news has contained stories of large mortgage lenders suspending foreclosures while they review their internal processes. The stories have only mentioned problems associated with judicial foreclosures. The lenders admit to being overwhelmed with the volume of foreclosures and there are allegations of shoddy paperwork on behalf of the lenders. What might that mean for the investor?
Banks selling REO properties frequently give conditional warranty deeds or quit claim deeds when selling their properties. Those transfers mean the seller /lender is not guaranteeing the buyer that they are getting an unclouded title to the property, only that the lender is selling whatever interest in the property they have to the buyer. The best thing a buyer can do when making their offer is to require the seller to provide them with insurable title. Simply state that requirement in the purchase agreement. If the title company provides you with insured title, it becomes the problem of the title insurance company to work out any subsequent claims on property if the former owners object to the foreclosure procedure done by the lender. If the lender/seller is unwilling to give insurable title, you should pass on the deal since neither you nor subsequent buyers would be able borrow against the property. That could make it difficult if not impossible to resell.