Deeds of Trust
Underwriting Manuals
- 4.20 Deeds Of Trust
- 6.00 Federal Foreclosure Act (Multi-Family)
- 11.28 Loan Policies
- 12.12 Mechanic's Liens
- 12.28 Mortgages
- 12.32 Mortgage Foreclosures
- 15.72 Purchase Money Mortgages
- 17.16 Redemptions From Mortgage Foreclosures
- 17.46 Revolving Credit (Future Advance) Endorsements
- IN 12.28.4 Mortgages - Requisites for a Valid Mortgage - Electronic Records
Standard Exceptions
Bulletins
- No references available.
Forms
- No references available.
Table of Contents
DTS
Deeds of Trust
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.
Exceptions
DTSX01
ALTA
07/10/2009
V
2
Deed of Trust - Describes Note and Loan Number
Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby:
Amount: $_________
Dated: __________
Trustor: __________
Trustee: __________
Beneficiary: __________
Recorded: __________
Address: (optional)
Loan No. (optional)
Comment: This exception describes the secured note. The Company prefers not to describe the note if possible.
Amount: $_________
Dated: __________
Trustor: __________
Trustee: __________
Beneficiary: __________
Recorded: __________
Address: (optional)
Loan No. (optional)
Comment: This exception describes the secured note. The Company prefers not to describe the note if possible.
See Underwriting Manual
DTSX02
ALTA
07/10/2009
V
2
Deed of Trust - Describes Note
Deed of Trust from ____________ to ____________ for the benefit of ____________ recorded ____________, securing a note in the original principal sum of $___________ and other obligations described therein.
Comment: This exception describes the secured note. The Company prefers not to describe the note if possible.
Comment: This exception describes the secured note. The Company prefers not to describe the note if possible.
See Underwriting Manual
DTSX03
ALTA
07/10/2009
V
2
Deed of Trust - Does Not Describe Note
Deed of Trust from ____________ to ____________ for the benefit of ____________ recorded ____________, securing the indebtedness and other obligations described therein.
Comment: This exception does not describe the secured note. The Company prefers not to describe the note if possible.
Comment: This exception does not describe the secured note. The Company prefers not to describe the note if possible.
See Underwriting Manual
DTSX04
ALTA
07/10/2009
V
2
Assignment
The Deed of Trust recorded __________ was assigned to ___________ by instrument recorded __________.
Comment: This exception describes a complete assignment of the lien and note. Do not use if only a participation interest or collateral assignment is filed.
Comment: This exception describes a complete assignment of the lien and note. Do not use if only a participation interest or collateral assignment is filed.
See Underwriting Manual
DTSX05
ALTA
07/10/2009
V
3
Assignment of Beneficial Interest
The beneficial interest under the Deed of Trust recorded ___________ was assigned to _____________ by instrument recorded ______________.
Comment: This exception describes a complete assignment of the lien and note. Do not use if only a participation interest or collateral assignment is filed.
Comment: This exception describes a complete assignment of the lien and note. Do not use if only a participation interest or collateral assignment is filed.
See Underwriting Manual
DTSX06
ALTA
07/10/2009
V
2
Assignor is Not the Holder
The purported assignment executed by ______________ to ________________ and recorded __________________ of the Deed of Trust recorded ____________ was executed by a person that was not the record holder of the beneficial interest.
Comment: Do not rely upon an assignment (e.g., for release or foreclosure) if not satisfied as to the ownership of debt of record.
Comment: Do not rely upon an assignment (e.g., for release or foreclosure) if not satisfied as to the ownership of debt of record.
See Underwriting Manual
DTSX07
ALTA
07/10/2009
V
2
Collateral Assignment
The beneficial interest of _________________ under the Deed of Trust recorded _____________ was assigned to ________________ as collateral security by instrument recorded ______________.
Comment: If a loan is collaterally assigned, secure releases and assignments from both the collateral assignee and collateral assignor. Do not insure a collateral assignment unless you secure the Company’s approval.
Comment: If a loan is collaterally assigned, secure releases and assignments from both the collateral assignee and collateral assignor. Do not insure a collateral assignment unless you secure the Company’s approval.
See Underwriting Manual
DTSX08
ALTA
07/10/2009
V
2
Modification
The Deed of Trust recorded __________________ was modified by instrument recorded _________________.
Comment: Use this exception to describe a modification of a mortgage. If insuring a modification, determine that it does not create a novation or prejudice subordinate liens and interests. Otherwise, except to the priority of those matters. If the lender gets additional interest or better terms, add a creditor’s rights exception.
Comment: Use this exception to describe a modification of a mortgage. If insuring a modification, determine that it does not create a novation or prejudice subordinate liens and interests. Otherwise, except to the priority of those matters. If the lender gets additional interest or better terms, add a creditor’s rights exception.
See Underwriting Manual
DTSX09
ALTA
07/10/2009
V
2
Subordination
Deed of Trust recorded _______________ was subordinated to ____________________ as provided by instrument recorded ____________.
Comment: When insuring that a lien is subordinate, do not rely on blanket, future, or general subordinations. Require a specific corporate resolution from savings associations and banks that subordinate (unless a refinance on single family residence).
Comment: When insuring that a lien is subordinate, do not rely on blanket, future, or general subordinations. Require a specific corporate resolution from savings associations and banks that subordinate (unless a refinance on single family residence).
See Underwriting Manual
DTSX10
ALTA
07/10/2009
V
2
Doubtful Priority
No insurance is given as to the priority existing between the Deed of Trust recorded ___________ and the Deed of Trust (or Deeds of Trust) recorded concurrently therewith.
Comment: Add this exception if the priority of concurrent Deeds of Trust is not established in the Deeds of Trust or separate subordination agreements.
Comment: Add this exception if the priority of concurrent Deeds of Trust is not established in the Deeds of Trust or separate subordination agreements.
See Underwriting Manual
DTSX11
ALTA
07/10/2009
V
2
Subordination to Concurrent Deeds of Trust
The Deed of Trust recorded _____________ recites that it is subordinate to the Deed of Trust recorded concurrently therewith.
Comment: Use this additional exception if the Deed of Trust recites that it is subordinate to a concurrent Deed of Trust. When insuring that a lien is subordinate, do not rely on blanket, future, or general subordinations. Require a specific corporate resolution from savings associations and banks that subordinate (unless a refinance on single family residence).
Comment: Use this additional exception if the Deed of Trust recites that it is subordinate to a concurrent Deed of Trust. When insuring that a lien is subordinate, do not rely on blanket, future, or general subordinations. Require a specific corporate resolution from savings associations and banks that subordinate (unless a refinance on single family residence).
See Underwriting Manual
DTSX12
ALTA
07/10/2009
V
2
Notice of Default
Notice of default under the terms of the Deed of Trust recorded ___________________ by the alleged owner and holder of the note secured thereby recorded ____________________.
Comment: If a notice of default of an unreleased deed of trust has been recorded, the Company recommends reference to that notice for information to the parties.
Comment: If a notice of default of an unreleased deed of trust has been recorded, the Company recommends reference to that notice for information to the parties.
See Underwriting Manual
DTSX13
ALTA
07/10/2009
V
2
Trustee Substitution
A substitution recorded ________________ of _________________ as trustee under the Deed of Trust recorded ___________.
Comment: If a trustee substitution has occurred, the Company recommends that you refer to the substitution.
Comment: If a trustee substitution has occurred, the Company recommends that you refer to the substitution.
See Underwriting Manual
DTSX14
ALTA
07/10/2009
V
2
Notice of Trustee's Sale
A Notice of Trustee’s Sale recorded ________________ executed pursuant to the Deed of Trust recorded _______________.
Comment: If a notice of sale is filed, make reference to the notice after excepting to the deed of trust.
Comment: If a notice of sale is filed, make reference to the notice after excepting to the deed of trust.
See Underwriting Manual
DTSX15
ALTA
07/10/2009
V
2
Additional Advance
An additional advance secured by the Deed of Trust recorded _________________, as disclosed by the instrument recorded _________________.
Comment: Do not insure a mortgage if it secures an additional advance reflected by subsequent instrument unless you except to intervening matters (including mechanics’ liens) that may have priority.
Comment: Do not insure a mortgage if it secures an additional advance reflected by subsequent instrument unless you except to intervening matters (including mechanics’ liens) that may have priority.
See Underwriting Manual
DTSX16
ALTA
07/10/2009
V
2
Subordinate Matters
Matters that affect the Title but that are subordinate to the lien of the Insured Mortgage.
Comment: Use this exception in Schedule B of the Loan Policy if there are subordinate matters (e.g., liens or leases) and if you do not show those matters in Schedule B or Schedule B Part II.
Comment: Use this exception in Schedule B of the Loan Policy if there are subordinate matters (e.g., liens or leases) and if you do not show those matters in Schedule B or Schedule B Part II.
See Underwriting Manual
DTSX17
ALTA
07/10/2009
V
2
Redemption
Rights of redemption in any owner, lienholder, or other party in interest for ____________ days from the foreclosure sale of the Land dated ____________ and recorded ____________.
Comment: Except to rights of redemption applicable under state law after foreclosure.
Comment: Except to rights of redemption applicable under state law after foreclosure.
See Underwriting Manual
DTSX18
ALTA
07/10/2009
V
2
U.S. Redemption
Rights of redemption in the United States for one year from the foreclosure sale of the Land dated ____________ and recorded ____________.
Comment: In addition to federal tax liens creating U.S. redemption rights, a subordinate lien to the U.S. (e.g., by lien to SBA) may create redemption rights for one year after a nonjudicial foreclosure.
Comment: In addition to federal tax liens creating U.S. redemption rights, a subordinate lien to the U.S. (e.g., by lien to SBA) may create redemption rights for one year after a nonjudicial foreclosure.