Hello All

I have a case where the property is marketable but since it was purchased at Homeowner association foreclosure sale it is very difficult to find a title company wiling to insure the title for buyer who wants to finance it with traditional mortgage. 

Can one be denied for title insurance even if there is no direct legal justification? Also attorneys reviewed the deal and do not see any issue with it but underwriter is concerned of possible future lawsuit that may challenge the foreclosure sale process. 

Appreciate your comments.

Thanks

AA