Bulletin: MA2011003

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.

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