Consumer complaint received 2025-09-11 00:00:00
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: FIRST AMERICAN FINANCIAL CORPORATION
State: NY

Complaint narrative:
XXXX  Claim No. XXXX Response to Denial, Correction of Factual and Legal Errors, and Request for Reconsideration. 

Date : XX/XX/XXXX XXXX XXXX XXXX First American Title Insurance Company XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX XXXX On XX/XX/XXXX, I received a letter regarding a claim for a property : XXXX XXXXXXXX XXXX XXXX XXXX, XXXX XXXX, IL XXXX. First American Title Insurance Company. 

I must point out several critical errors made and the avoidance of liability by First American Title Insurance Company on their analysis and the basis for denial, after I requested that First American reconsider its position in light of the following legal and factual clarifications. 

I ) First American wrote XXXX letters which I will provide. The letters contains many errors. 
XXXX. Incorrect Attribution of Foreclosure to the XXXX The letters suggests that the litigation and foreclosure were actions taken by the XXXX XXXX ( XXXX ) " due to unpaid condominium assessments ''. 

This is factually incorrect. The foreclosure action was initiated by the XXXX XXXX XXXX XXXX  as Trustee for the Certificateholders of XXXX XXXX, not the HOA. The HOA did not foreclose on the property. 

The error is due to the U.S. Department of Veterans Affairs ( VA ) who acquired the property before judicial confirmation of the foreclosure sale, which is a direct violation of Illinois law. Under 735 ILCS 5/15-1508, title can not pass to any purchaserincluding the VAuntil the court enters an order confirming the sale. Any transfer prior to confirmation is void ab initio and does not extinguish my rights as owner [ XXXX ]. 

XXXX. Failure to Address the Void Sale and Chain of Title Defect The letters do not address the fact that the VAs acquisition of the property occurred before judicial confirmation, rendering the sale void. This is a fundamental defect in the chain of title. All subsequent conveyances, including the subsequent sale of the property to XXXX XXXX, are void if the initial sale was not properly confirmed. 

The omission of this issue undermines the validity of your denial and fails to engage with the core defect that triggers coverage under the XXXX XXXX XXXX [ XXXX ]. 

How to Demonstrate the Void Nature of the Foreclosure Sale : Legal Framework : Illinois law is clear that title does not pass until the court confirms the sale. Any transfer before confirmation is void [ XXXX ]. 

Evidence : I have provided, and can further supplement, the foreclosure docket, court orders, and title records showing the date of the sheriffs sale, the VAs acquisition, and the later date of judicial confirmation. 

Request : Please address this legal defect directly, not merely by reference to policy exclusions. 

XXXX. Misapplication of Policy Exclusions First American Title Insurance relied on Exclusions XXXX ( a ) and XXXX ( d ) to deny coverage, asserting that the defects were created, suffered, assumed, or agreed to by the Insured Claimant or attached or created subsequent to Date of Policy. 

These exclusions do not apply to involuntary acts or procedural defects imposed by third parties, such as a void foreclosure sale or wrongful acquisition by the VA. Illinois courts have held that involuntary or fraudulent acts that defeat the insureds title are not excluded under these provisions. 

The foreclosure and subsequent VA acquisition were not voluntary acts or ordinary post-policy events, but rather illegal clouds on title that the policy is designed to protect against [ XXXX ], [ XXXX ]. 

Challenging First Americans Reliance on Policy Exclusions : XXXX XXXX ( a ) does not apply to involuntary or void acts imposed by third parties. 
Exclusion XXXX ( d ) does not bar coverage for void or fraudulent post-policy events that defeat the insureds title. 

Illinois law and standard XXXX XXXX XXXX practice require a fact-specific inquiry into whether the loss was caused by a covered risk, not merely the timing of the event [ XXXX ], [ XXXX ]. 

XXXX. Incomplete Investigation First American Title letters do not indicate that First American conducted any investigation into whether a valid foreclosure judgment was entered before the VA acquired the property. The insurers duty is to investigate the validity of the foreclosure process and the chain of title, not simply to rely on the existence of recorded litigation or deeds. A summary denial without such investigation is contrary to Illinois law and standard title insurance practice [ XXXX ], [ XXXX ]. 

XXXX. Insurers Duty to Investigate and Reconstruct Policy Terms Illinois law and XXXX XXXX XXXXXXXX XXXX practice require the insurer to make reasonable efforts to reconstruct policy terms and investigate the claim in good faith when the insured is unable to produce original documentation due to circumstances beyond their control, such as a wrongful eviction. The insurer can not simply deny the claim for lack of original documentation under these circumstances [ XXXX ], [ XXXX ]. The burden of proof is on them to obtain these documents. 

XXXX. Legal Significance of the Evidence Provided I have provided all available records from the XXXX XXXX XXXX of Deed, including documentation of the eviction, the violation of XXXX XXXX, and the appeal process. These records are directly relevant to the question of whether the foreclosure and eviction were valid, and whether the resulting loss of title or value is a covered risk under the policy. The insurer is obligated to review and consider these materials as part of its investigation and to reconstruct the policy terms using its own records, industry standards, and the evidence I have supplied [ XXXX ], [ XXXX ]. 

XXXX. Legal Ownership Rights and Challenge the Chain of Title First American continues to deny coverage, therefore the filing of this claim. 

Quiet Title Action : File a quiet title action in Illinois XXXX XXXX to declare the VAs acquisition and all subsequent transfers void, and to restore my ownership. The legal basis is that the foreclosure sale was void ab initio due to the lack of judicial confirmation at the time of transfer, and all subsequent conveyances are likewise void [ XXXX ]. 

XXXX XXXX : Seek a temporary restraining order or preliminary injunction to prevent further conveyances or encumbrances while the quiet title action is pending. 

Damages and Equitable Relief : Include claims for damages resulting from wrongful eviction, property damage, and loss of use. If First American continues to deny coverage without proper investigation, I will consider a claim for bad faith denial under Illinois law [ XXXX ], [ XXXX ]. 

Evidence : I will provide court records, sheriffs sale and confirmation orders, title documents, and any evidence of the VAs premature acquisition, as well as affidavits or expert opinions on Illinois foreclosure procedure and the effect of a void sale. 
XXXX. XXXX XXXX XXXX XXXX and XXXX XXXX XXXX VA XXXX XXXX the involvement of VA personnel in the sale and the connection to the current occupant, I am preparing to report these matters to the following agencies : Federal : VA Office of Inspector General ( OIG ), U.S. Office of Special Counsel ( OSC ), and the U.S. Department of Justice ( DOJ ). 


XXXX. Additional Evidence and Documentation If there are specific types of evidence or documentation that would further support my claimsuch as additional court records, affidavits, or expert opinions regarding the validity of the foreclosure and evictionplease advise so that I may provide them. I am prepared to supplement the record as needed to demonstrate that the wrongful eviction and related legal violations impact the validity of the foreclosure and the insurers coverage obligations [ XXXX ], [ XXXX ]. 

XXXX. Request for Reconsideration Given these errors and the controlling law, I have requested that First American : Reopen and reconsider my claim, omitting any reference to XXXX foreclosure as a basis for denial. 

Investigate the existence ( or absence ) of a valid foreclosure judgment and the timing of the VAs acquisition. 

Address the impact of a void sale on the chain of title and coverage under the XXXX XXXX XXXX. 

Provide a written response clarifying the steps taken to investigate these issues and the legal basis for any continued reliance on policy exclusions. 

If First American persists in denying the claim without reasonable investigation or reconstruction, this may support a claim for bad faith under Illinois law. I reserve all rights and remedies available to me under the policy and applicable law. 
Thank you for your attention to this matter. I look forward to your prompt and substantive response. 
Sincerely, XXXX XXXX References : [ XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX VA acquired before confirmation [ XXXX ] Challenge policy exclusions Argue exclusions dont apply to void/involuntary acts ; require fact-specific inquiry [ XXXX ], [ XXXX ] Establish ownership in court File quiet title action, seek injunction, claim damages [ XXXX ], [ XXXX ] Report conflict of interest File with VA OIG, OSC, DOJ, IL XXXX, XXXX XXXX XXXX XXXX XXXX [ XXXX ] XXXX XXXX to foreclosure, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation