Bulletin: MI2012007

Date:
September 11, 2012
To:
All Michigan Issuing Offices
RE:
REO Sales/ Michigan State Tax Liens

Dear Associates:

Please be advised that the State of Michigan has begun recording tax liens against various institutional lenders (Bank of America, Wells Fargo and Flagstar), Freddie Mac, Fannie Mae, and HUD as a result of the failure of those parties to rescind the homestead exemption on properties acquired by these entities/ Agencies after a mortgage foreclosure. The liens are not posted against the property in question, but rather, are found by using the name (grantor-grantee) index in the County where the property is located and the records in Ingham County.

After discussions with representatives of the State of Michigan, it appears that the State is unwilling to release any particular parcel of property from the effect of the liens against the REO seller without payment of all liens against them. The State is willing to provide a payoff letter upon request of the delinquent entity or upon submission of an executed power of attorney form by the seller as promulgated by the State. [See attached]

Consequently, we would require that you perform a name check in the county records where your property is located for your REO seller and show and require releases of any liens.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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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:
None
Exceptions Manual:
None
Forms:
None