Bulletin: NH000006

Dear Associates:

The number of mortgagee's auction advertisements in the daily newspaper are testimony to the dramatic increase in foreclosures that New England lenders are experiencing. These foreclosures have their own unique set of requirements in terms of title work - requirements that we fear may often be overlooked.

Stewart Title recommends that the following be considered before proceeding with the title work on a foreclosure:

Full Search: Although updates are frequently conducted in lieu of a full search in foreclosures, we strongly recommend that attorneys or other title professionals complete a full title search. An update does not disclose senior mortgages of record or subordination agreements which did not get recorded or title problems which may delay closing beyond the statutory recording time frame requirements. Full searches are only marginally more expensive and are well worth the increased expenditure as a measure to protect against errors as well as against the risk posed to your relationship with your clients if problems arise.

Commitment to Insure: Stewart Title feels that a title insurance commitment issued prior to foreclosure sale is crucial to obtaining higher bids on foreclosure properties. Consequently, after a full title search, Stewart offers a commitment to insure at the time of foreclosure, subject to compliance with all state and federal legal requirements for foreclosure.