The laws in these states prescribe how the foreclosure is conducted and the notices which must be given of the pendency of such proceeding. The Trustee's Sale Guarantee is responsive to the needs of a foreclosing trustee or mortgagee for public record information as to individuals and entities who, under state law, must receive notice of the pending foreclosure. The Guarantee supplies the following public record information:
- The vesting of title to the estate or interest encumbered by the Mortgage or Deed of Trust
- The encumbrances against the land
- The names and addresses of individuals and entities who must, under state law, receive notice of the foreclosure proceedings
- The newspaper qualified to public notice of the foreclosure proceedings
- The City or Judicial District in which the land is located
Most investors think this policy insures them that the foreclosure was conducted properly. It does not. It insures that the notices on the list provided by the title company are all the notifications to satsify the state's foreclosure laws. It is a very weak policy and has extremely limited coverage.