Do You Need Title Insurance When Buying a Foreclosure

It is generally recommended to purchase title insurance when buying a foreclosed property, as there may be issues with the title that were not disclosed by the previous owner. These issues could include liens, unpaid taxes, or other encumbrances that could cause problems for the new owner. Title insurance can provide protection against these types of issues and help cover the cost of any legal fees or losses that may arise.

However, whether or not you are required to purchase title insurance will depend on the lender and the terms of your mortgage. Some lenders may require that you purchase title insurance as a condition of the loan, while others may leave it up to you. It's always a good idea to discuss the matter with your lender and a real estate attorney to determine the best course of action.