Bulletin: DC2018005

Date:
October 26, 2018
To:
All District of Columbia Issuing Offices
RE:
UNDERWRITING - Judicial Foreclosures in the District of Columbia

Dear Associates:

The purpose of this Bulletin is to provide guidelines for insuring judicial foreclosures in the District of Columbia (“DC”).

Background: 

In DC, a mortgagee may foreclose non-judicially or judicially. A judicial foreclosure is an equitable action to terminate the borrower’s right of redemption and obtain a decree of sale for the subject property. In contrast to a non-judicial foreclosure, the mediation requirements articulated in D.C. Code §42-815 et. seq. do not apply to judicial foreclosures. See Rogers v. Advance Bank, 111 A.3d 25, 29 (D.C. 2015).

Action:

Underwriter approval is necessary to insure a lender or purchaser named in the order ratifying the sale of the property. Additionally, underwriter approval is necessary to insure a party purchasing a property from the lender or purchaser named in the order ratifying the sale of the property. To assist you with reviewing DC judicial foreclosures, a DC Judicial Foreclosure checklist is attached to this Bulletin. 

When seeking underwriter approval for judicial foreclosure, please send the underwriter the completed checklist, complaint, notices, decree of sale, and order ratifying the sale. On a case by case basis, the underwriter may require additional information to make a decision as to whether the Company will insure title to the property. 

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

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

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