A deed of trust or trust deed is a lien that creates a power of sale by the Trustee. Numerous requirements must be satisfied to insure a deed of trust or mortgage or a foreclosure of that lien.
Any claim based upon the Servicemembers Civil Relief Act (50 USC §§ 3901 - 4043), and any amendments thereto, which restricts foreclosure, forfeiture and other legal proceedings against persons based upon their military service in the uniformed services of the United States.
Comment: Use this exception in commitments and policies where the property to be insured is acquired out of a mortgage foreclosure, trustee's sale, or tax sale, if the foreclosed/forfeiting party is a person (including any form of joint tenancy, tenancy in common or tenancy by the entirety).
The above exception relates only to: (a) the acquisition of property by a foreclosing entity or taxing authority, and (b) the first sale to a third party purchaser following a foreclosure or forfeiture (including a simultaneous mortgage).
You may omit the above exception when underwriting a transaction subsequent to the first sale following a foreclosure or forfeiture, or where you are able to confirm that the foreclosed/forfeiting owner was never in military service, or as otherwise provided by our underwriting guidelines.