Thomas: Was the title done for the purchase or the pending  foreclosure that you indicate was "started"? If the foreclosure is still pending- have your friend correct his report since no losses have incurred yet. If the title was done for the original purchase- there is no way a judgment will attach to the property since we don't know what the property is until the moment the deed is recorded. Some title agents will provide purchaser information when recording and request to be made aware of any judgments that appear so they can make what ever exceptions to their interests as far as the title insurance is concerned.
How can they make a statement that he is liable for something that has not caused a loss yet- just another title insurance company extending their ways with the agents- pay the claim first and ask (any) questions after the check has been cut . The only places that we have witnessed communications recently with persons from the future is on Comedy Central's Reno 911 and South Park.
Steve Meinecke
IA/Titlefax
Woodbridge, Va