I have never seen the court award more than $150.00 for a foreclosure title search. There are some abstractors that refuse the work for that reason.
A competent law firm usually does three title searches in connection with a foreclosure. The initial search is done to determine the identity of the title holder, his interest in the property and the identities of the encumbrancers on the property. All who hold encumbrances on the property must be identified in the complaint with a statement as to whether their encumbrance is prior or subsequent to the plaintiff's claim. Those whose encumbrances are subsequent must be named as defendants. Those whose claims are prior are not named as defendants.
The second title search is usually performed before a motion for summary judgment or judgment after default to make certain that all the proper party interests have been foreclosed. Parties who have recorded an encumbrance after the plaintiff has recorded his lis pendens are foreclosed by the lis pendens if they have not intervened in the foreclosure action. Those who have recorded after the initial title search but before the lis pendens is recorded must be named in an amended complaint.
The third title search is usually an update to make certain there are no new problems before a foreclosure certificate or committee deed is recorded. It is similar to the search that abstractors perform when they record a mortgage.
The law firms that are performing the foreclosure may elect to perform the search themselves, and seek the $150.00 award from the court. The law firm may also somehow build the additional searches into their attorney's fees for the cost of the foreclosure. Full disclosure to the court of all legal services and time involved in the rendition of services must be made. The court will make a determination of whether the attorney's fees claimed are excessive or reasonable, and either grant or reduce the amount awarded for attorney's fees. It then does not become an issue.
The attorney's fees in a foreclosure can be substantial, and are also awarded to the plaintiff as part of his damages. I remember seeing one case that was disposed of through a motion for summary judgment. The attorney's fees awarded by the court were $40,000.00....no trial required.
Most foreclosures do not go to trial. There are very few defenses. In those cases in which the defendant has no defense...a judgment after default (strict foreclosure or foreclosure by sale) enters. In those cases in which the Defendant asserts a defense, the case usually ends with the court granting the plaintiff's motion for summary judgment. In those cases in which the plaintiff does not win his motion for summary judgment...a trial results.
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