Bulletin: IN2011003

Date:
May 11, 2011
To:
All Indiana Issuing Offices
RE:
Sale or Mortgage of Property by Court-Appointed Receiver

Dear Associates:

This Bulletin is a reminder that if you are asked to insure a sale or mortgage by a court-appointed receiver in a foreclosure, partition or other type of transaction, you must contact an underwriter for approval. Additional requirements to insure may be applicable. In the recent case of Wells Fargo v. Tippecanoe Associates, 923 N.E. 2d 423 (2010 Ind. App.), the Court of Appeals ruled that a receiver appointed in a mortgage foreclosure action does not have the power under Indiana law to sell the mortgaged property subject to the receivership in a private sale absent the consent of the owner-mortgagor.  The Court also held that a pre-default waiver of redemption rights by the owner-mortgagor is not enforceable in Indiana. As a result, this case suggests that a receiver appointed in a foreclosure proceeding only has the power to sell property subject to the receivership if the owner-mortgagor consents to the sale and waives any redemption rights with respect to the property. 

If you have questions related to this bulletin, please contact your local underwriting personnel or Stewart Legal Services.

 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.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None