Bulletin: NH000006

Date:
June 15, 1993
To:
All Issuing Agents
RE:
Title Work and Foreclosures

Dear Associates:

The number of mortgagee's auction advertisements in the daily newspaper are testimony to the dramatic increase in foreclosures that New England lenders are experiencing. These foreclosures have their own unique set of requirements in terms of title work - requirements that we fear may often be overlooked.

Stewart Title recommends that the following be considered before proceeding with the title work on a foreclosure:

Full Search: Although updates are frequently conducted in lieu of a full search in foreclosures, we strongly recommend that attorneys or other title professionals complete a full title search. An update does not disclose senior mortgages of record or subordination agreements which did not get recorded or title problems which may delay closing beyond the statutory recording time frame requirements. Full searches are only marginally more expensive and are well worth the increased expenditure as a measure to protect against errors as well as against the risk posed to your relationship with your clients if problems arise.

Commitment to Insure: Stewart Title feels that a title insurance commitment issued prior to foreclosure sale is crucial to obtaining higher bids on foreclosure properties. Consequently, after a full title search, Stewart offers a commitment to insure at the time of foreclosure, subject to compliance with all state and federal legal requirements for foreclosure.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
12.32 Mortgage Foreclosures
Exceptions Manual:
NH Mortgages
Forms:
ALTA Commitment 1982