Bulletin: MA2011003

Date:
November 03, 2011
To:
All Massachusetts Issuing Offices
RE:
Insuring Titles Derived Through Foreclosure

Dear Associates:

As you may be aware, the Massachusetts Supreme Judicial Court has issued its opinion in the matter of Bevilacqua vs. Rodriguez, SJC-10880.The SJC affirmed the Land Court’s decision dismissing Francis Bevilacqua’s ‘try title’ action for lack of standing, holding that he did not possess ‘record title’ to the property he purchased out of foreclosure from U.S. Bank National Association since the U.S. Bank did not hold a valid mortgage at the time it initiated foreclosure proceedings against Rodriguez. The Bevilacqua decision follows the recent SJC holding in the U.S. Bank v. Ibanez case and presents an important opportunity to review underwritingrequirements when insuring a title derived through foreclosure.

We previously issued Bulletin MA2009001 at the time of the issuance of the Ibanez decision in the Land Court. That Bulletin advised our issuing offices in Massachusetts that titles derived through foreclosure were not insurable where the recorded Assignment into the foreclosing lender was not dated and acknowledged prior to the time of the first publication under c. 244, §14. That position has not changed.You must verify that the foreclosing lender had good record title to the mortgage being foreclosed in order to insure.

For a review of a rules checklist pertaining to insuring titles derived through foreclosure in Massachusetts click here. To review the full Bevilaqua v. Rodriguez opinion click here.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

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.

Underwriting Rules for Reviewing Foreclosures in Massachusetts

References

Bulletins Replaced:
None
Related Bulletins:
MA2009001 Recent Land Court Decisions Requiring Suspension of Authorization to Insure Massachusetts Titles Based on Foreclosures with Post-Foreclosure Assignments
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None