Bulletin: AK000001

Date:
May 30, 1989
To:
All Alaska Agents
RE:
Upset Price

Dear Associates:

The Alaska Supreme Court has ruled that a court may establish a minimum bid or "upset price" for the sale of real property at a judicial foreclosure. Hayes V. Alaska USA Federal Credit Union, 767 P 2d 1158 (1989).

This price can be set before sale, or after the sale at the confirmation hearing. Although not authorized by statute, the court held that this power is inherent in the judicial system to avoid abuse at foreclosure sales.

The court ruled that it may refuse to confirm a sale "where there is gross inadequacy of price or inadequacy so extreme as to shock the conscience of the court".

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
12.32 Mortgage Foreclosures
Exceptions Manual:
AK Mortgages
Forms:
None