Bulletin: WA000024

Date:
July 09, 1991
To:
All Washington Agents
RE:
Omitted Lienholders

Dear Associates:

The Washington Supreme Court has ruled that a mortgage can be reforeclosed against an inferior lienholder who was inadvertently omitted from the original foreclosure. U.S. Bank of Washington v. Hursey, 806 P.2d 245 (1991).

In this case the bank foreclosed its mortgage but missed a judgment creditor because of an error in the clerk's office. When the mistake was discovered the bank began a new foreclosure against the judgment creditor.

This procedure was approved by the supreme court. It is consistent with common law and decisions in other states.

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:
WA Mortgages
Forms:
None