T-98 Guideline - TX Limited Pre-Foreclosure Policy

Organizational Guidelines

T-98 Guideline - TX Limited Pre-Foreclosure Policy

Guideline Document
V 1


The Limited Pre-Foreclosure Policy is issued to lenders whose liens are in default and who will foreclose or acquire title by deed in lieu of foreclosure. The policy insures certain matters recorded in the public records on or after the date of the foreclosing mortgage, taxes, standby fees and governmental assessments, and general tax and judgment liens against the mortgagor and successors in ownership.

Underwriting Requirements:

1.    You may issue this Policy naming any or all of the following as insured upon request: the lender; an assignee of the loan; an attorney handling the foreclosure; and, the trustee or substitute (successor) trustee.

2.    You may issue this Policy in the amount requested in writing by the proposed insured. We will assume this amount reflects the land value or loan balance.

3.    Do not issue a Commitment prior to issuing this Policy.

4.    Do not provide Express Insurance as to Exceptions.

5.    You may delete the Arbitration provision upon request by the insured by adding the following to the Combined Schedule, Down Date Endorsement to the Policy, or T-3 Endorsement to the Policy: "Item 9 of the Conditions and Stipulations is hereby deleted."

6.    Do a record title search of the land from the Date of Filing of the Foreclosing Mortgage. Show all matters recorded on or after the Date of Filing of the Foreclosing Mortgage in the Exceptions From Coverage of the Combined Schedule. Recorded matters to be shown would include easements, restrictions, minerals, Lis Pendens, mortgages (even if later released), mortgage assignments, mortgage modifications, releases, and title conveyances.

7.    Do a record search of the name of the Mortgagors and any successors in title for federal tax liens (recorded within 10 years and 30 days), U.S. judgment liens, other judgment liens (recorded within 10 years), state tax liens (recorded within 3 years), and Notices of Bankruptcy (recorded on or after the Date of Recording of the Foreclosing Mortgage).

8.    Do a search for taxes, standby fees and assessments.

9.    Attach a Schedule D. See the format which is available through from T-40 in the reference section at the end of this bulletin.

10.  The premium is 40% of the Basic Rate for the Amount of Insurance. The premium may not be less than $229.

11.  The Date of Policy will be the date through which you examine title.

Any revision to this form requires approval of a Stewart Title Guaranty Company underwriter. The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):