Bulletin: CA000018

Date:
December 29, 1994
To:
All California Issuing Offices and Agents
RE:
Estate of Della Yates, Baker v. West End Financial Corporation, Inc. 25 Cal. App. 4th 511 (May 1990)

Dear Associates:

This matter involved the death of a homeowner prior to paying off the balance of a debt. The public administrator who was appointed to administer the estate of the deceased did not know of the lien. A non-judicial foreclosure sale was held wiping out the interests of the decedent's estate. The public administrator brought an action to have the sale set aside based upon lack of notice to the trustor (the decedent) under the California Civil Code Section. The Court concluded that the public administrator did not receive proper notice and, therefore, set the foreclosure sale aside. It was determined that the trustee of the deed of trust mailed notice of the foreclosure only to the trustor's home and to her former address rather than to the public administrator's office address. It appeared that there was ample evidence that the trustee must have been aware of the public administrator's address, but notwithstanding never sent notice to that address. The Court eventually set the sale aside. The California Trustees Association moved for the California Supreme Court to have the case decertified and/or overruled. They lost on both accounts when their petition was denied. They are currently working with the legislature to amend the Civil Code. However, until they are able to amend the statute and as a result of this case, it is incumbent that upon the issuance of a trustee sale guarantee where the chain of title reflects the death of the borrower or the death of a junior lienholder or other interested party entitled to receive notice that a review of the probate file be made, to determine the address, if any, of the public administrator or of the executor/executrix so that notice can be sent to that administrator or executor/executrix at the addresses provided.

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:
CA Mortgages
Forms:
CLTA Trustee's Sale Guarantee (Revised 05-27-09) 22