When your insured files a property claim, wouldn't you like to know whether the residence or commercial building is in foreclosure? Owners in danger of losing their property tend to face numerous financial pressures that could lead them down the road to fraud.
ISO is developing a new service for property insurers: ISO ClaimSearch® Foreclosure Alert. When you sign up for the service, ISO ClaimSearch will match property claims against third-party foreclosure records.
Foreclosure: A Multistep Process
When you report a property claim to ISO ClaimSearch, the system will search that property against foreclosure data, and if applicable, it will display the following notices:
- notice of default (NOD) — the owner is several months behind on mortgage payments
- lis pendens (LIS) — legal action is pending
- notice of trustee sale (NTS) — the property is set for auction
- notice of foreclosure (NFS) — the property is sold at auction
- real estate-owned (REO) — the lender assumes ownership of the unsold property
Knowing the specific stage of foreclosure — as well as whether the property is occupied — can help investigators decide whether to pursue a case. The details in Foreclosure Alert can also provide important information if investigators are already looking into a suspect.