Buy a foreclosed home or not?

[Pantoot]

Actually thats not true. Many people make that mistake. Title insurance protects the mortage company, not you. If someone comes along and makes a claim for the house, the title insurance will try pay the person off most likely. If the persons claim is legal and they want the house awarded to them probably in court, the title company will then pay the mortage holder (bank) protecting them against loss. But you are out, you lose the house, any down payment money, just about everything. There is additional insurance available for the borrower you can get to protect against this. Most title searches are pretty damn thorough and any clouds are taken care of. But title insurance protects the bank or mortage lender, not the borrower.

Absolutely true, but this is ATOT, where nobody needs a mortgage to buy a house.