*******Curative

California REO
Examination
Guidelines

TITLE EXAMINING 101
OBJECTIVE:

To establish a clear chain of title and disclose all encumbrances to a particular piece of real
estate property as set out in a specific legal description.

ENCUMBRANCES AFFECTING TITLE:

Deeds Taxes Easements CC&Rs
Mortgages (Deeds of Trust) Liens
Judgments or other court actions

Leases

Bankruptcy

LEGAL DESCRIPTION:

THE EXAMINING PROCESS:

SEQUENCE OF FORECLOSURE EVENTS

1. The subject Deed of Trust falls into default as a result of non-payment for a period of 90
days.

2. Thence, a Notice of Default (NOD) must be executed by the current trustee of record and
recorded.

3. The beneficial interest of the subject DT may be assigned to another lender by assignment. If
the original lender was Mortgage Electronic Registration Systems (MERS) there may not be a recorded
assignment.

4. There may be a Substitution of Trustee recorded in which the lender replaces or appoints a new
trustee to the Deed of Trust.

5. Thence, a Notice of Trustee’s Sale must be executed by the current trustee of record and
recorded. This document provides the place, date and time of the foreclosure sale.

6. Thence, the property is sold at auction.

7. Thence, a Trustee’s Deed Upon Sale will be issued by the trustee of the foreclosure sale to the
successor bidder and get recorded.

GUIDELINES FOR EXAMINING

Procedure Steps

1. Begin

a. Go to your queue (“my worklist”)

b. Review to make sure that your search package doesn’t fall in any of the rejection criteria.

c. Then save your SP to a designated folder then begin to exam.

2. Organize Pages
The order of the pages in the file:
1. Order Sheet
2. Taxes
3. Assessor’s Parcel Map
4. Tract Map
5. TSG, if any.
6. Starter
7. Documents in chronological order by recording date with the following exceptions
a. Deeds of
Trust – all documents relating to a Deed of Trust will directly
follow the Deed of Trust to which it is associated with the exception of the
Trustee’s Deed Upon Sale.
b. Utility liens, municipal liens, mechanic’s liens, HOA liens and Lis Pendens should be arranged
in chronological order by date to tell whether a lien or
judgment is senior or junior to the subject TD.

8. Trustee’s Deed Upon Sale
9. Federal Tax Liens, Bankruptcy Information, or any other liens or judgments that show on the
General Index Run
10. Accurint Run (if needed)
11. Property Index Run
12. General Index Run
13. Any additional maps
GUIDELINES FOR EXAMINING

Procedure Steps

1. Begin

a. Go to your queue (“my worklist”)
b. Review to make sure that your search package doesn’t fall in any of the rejection criteria.
c. Then save your SP to a designated folder then begin to exam.

2. Organize Pages

The order of the pages in the file:
1. Order Sheet
2. Taxes
3. Assessor’s Parcel Map
4. Tract Map
5. TSG, if any.
6. Starter
7. Documents in chronological order by recording date with the following exceptions a. Deeds of
Trust – all documents relating to a Deed of Trust will directly
follow the Deed of Trust to which it is associated with the exception of the
Trustee’s Deed Upon Sale.
b. Utility liens, municipal liens, mechanic’s liens, HOA liens and Lis Pendens should be arranged
in chronological order by date to tell whether a lien or
judgment is senior or junior to the subject TD.
8. Trustee’s Deed Upon Sale
9. Federal Tax Liens, Bankruptcy Information, or any other liens or judgments that show on the
General Index Run
10. Accurint Run (if needed)
11. Property Index Run
12. General Index Run
13. Any additional maps

3. Verify Address
a. The situs address on the taxes must match the address on the order sheet.
b. The address shown on the Deed of Trust must match the address on the order sheet and the taxes.
c. Determine if the address is in an unincorporated area.
d. Check the map for verification of street name and type, i.e., avenue, road, lane
e. NOTE: The unit number for a condo address is not always the same as the unit number in the
legal description or on the condo plan.

4. Locate PIQ on Assessors Parcel Map
Pin point your property using the arrow and indicator as follow.

5. Code Starter
a. Insert codes next to each relevant exception in the starter corresponding to the item listed on
your write-up sheet.

6. Code Documents
a. Insert code on the face of the document corresponding to the item listed on your write-up
sheet.
b. Highlight, box or underline the information to be used along with the provided code for typist.

7. Determine Vesting
The vesting will be taken from:
a. Follow the chain of title to the last deed of record, then vest off the last deed of record. Be
on the look-out for any break in the chain of title which may cause a “cloud” in title.

8. Determine Legal Description
a. Always use the most complete legal description; this can be on the vesting deed or the subject
Deed of Trust. However, the legal description on other documents can be used for clarification
purpose.

9. Number Pages

a. Click on DOCUMENT in the task bar of Acrobat Adobe
b. Click on HEADER AND FOOTER in the drop down menu c. Click on ADD
c. Click on the arrow down then select <<complete-Typing>

f. Click in the white bar under RIGHT HEADER TEXT
g. Click on INSERT PAGE NUMBER
h. Click on OK

10. Write Up Exam worksheet
a. Open WORKSHEET
b. Type in the ORDER NUMBER, ADDRESS, CITY, STATE, PROPERTY TYPE, PLANT DATE, VESTING PAGE, LEGAL
DESCRIPTION PAGE, AND ESTATE TYPE
c. Transfer your codes from your examined pages to your worksheet d. Indicate where the typist
may find the information for each code

i. The item number and page number of the starter, or
ii. The page number for the document.

11. Save worksheet and exam package.
12. Upload Final exam and Write-up sheet to Title Management TM)
13. Log File OUT to typing
a. Find the completed file in “My worklist”
b. Look for the “complete action” column.
d. Then click the button on the upper right hand corner. The order will be removed from
your Exam queue and place into the typing queue.

BASIC CALIFORNIA EXAMINING WORKSHEET CODES
Shown in the order as they may appear on the Examining Worksheet

The below codes represent the most frequently used codes in California examinations. Not all of the
below codes will be used on each and every exam. Codes designated as ALWAYS must always be shown.

For specific county criteria see the “Guidelines for California Municipal and Utility Services” for
detailed information on codes and write-ups that are unique to that county.

Refer to Examining Code Book for less often used codes and the exact wording of each code.

General Information:
Order Number Taken from Order Sheet

Property
Address Street address as shown on Order Sheet, Taxes and Deed of Trust
City / Unincorporated

If the PIQ is within the city limits, use the name of the city.
If the PIQ is in an Unincorporated area of the county write in
UNINCORPORATED in the block designated as City.
AREA If the PIQ is OUTSIDE the city limits, it is in an unincorporated area. Put
in the name of the town, area, etc.

City If PIQ is within the city limits indicate the City.

County Indicated the County where the PIQ is located

SFR Single Family Residence
PUD Planned Unit Development (ie Townhomes)
SFR PUD Single Family Residence in a Planned Unit Development

Property
Type

CONDO Condominium
MULTI Multiple Unit Dwelling
VACANT Vacant Land
Can be determined from the Deed of Trust; legal description; map

Report Preliminary Report
Date Plant Date taken from Property Run

Time 7:30 A.M. (ALWAYS)

I1 Legal description shows a single parcel
I2 Includes a parcel as an easement
Estate
I2a Property has more than one easement parcel
I3 Condo
I3a Condo with parking
Vestee Show page number where vesting is found

Description Show page number where legal description is found

Taxes:
Code When to use

T1 A lien not yet due or payable

T2 Unpaid secured taxes T4 Paid secured taxes T23
Taxes to follow

T5 Redemption schedule for delinquent & defaulted taxes.

T7 Unpaid supplemental taxes

T8 Escaped taxes

T11 Improvement District / Bonds (1915 only)

T12 Assessments for Improvement Districts designated as (NOTPDW/TAXES)

T20 Mello Roos Taxes showing recording information

T40 Mello Roos Assessments shown on taxes without recording information

T44 Assessments for Improvement Districts (Not 1915 and Not (NOTPDW/TAXES) T9
ALWAYS Lien of Supplemental Taxes

Exceptions:
Code When to use
WATER ALWAYS Water rights

T20A Mello Roos Taxes shown as Notice of Intent to Remove
COPY Special county information regarding requesting information (See Special County
Tax Codes)
E4 Easements as shown on a Tract Map

E4B Easements as shown on a Parcel Map

E4A Additional purpose and affects on Tract or Parcel Map (sub paragraph of E4 or E4B)

E1 Easement with showing Grantee and Affects

E1A Easement without showing Grantee

E3 The affects cannot be located (sub paragraph of E1 or E1A)

E5 / E7 Non-access to abutting highway, but access is available via other means

E6 / E7 Recorded document indicating there are no rights of access to highway, but access
is available via other means
E25 or
E25 (mod)
Recitals on a Tract Map – for use with General Notes, Owner’s Statements, Signature Omissions, etc.

E37 Perpetual air or flight easement affects the airspace above the land. If on
direct or AP starter, always show.
C1A / C2 CC&Rs that delete discriminatory clauses

C2AMOD Restrictions may be removed or deleted that are of discriminatory nature

C1M CC&Rs that omit discriminatory clauses

C5 CC&Rs for Planned Unit Development

C4 Modifications to CC&Rs (sub paragraph of C1A or C1M)

C6 Levy of assessments are subordinate to deeds of trust (sub paragraph of C1A or C1M)
C6B States the name of the Homeowner’s Association CARRINGTON orders only
(sub paragraph of C1A or C1M)
C9 Extension of CC&Rs to include more land (sub paragraph of C1A or C1M)

C18 Name of Homeowners Association
**C18B** ALWAYS include after the C18 or the CC&Rs (however show it even if the
HOA name is unknown on all files that have CC&Rs except MFR)
Easements for Common Area within a PUD or SFR PUD or condo (List on

E33A

worksheet at the start of the Exceptions) – Use as standard write-up for PUDs and Condos- this code
will cover all common area easements for Condos
in CA (only)

C22 Prohibits the sale of intoxicating liquor

C24 Condominium CC&Rs (C2 and C6 are included in this code)

C24A Condominiums – including parking or garage space in legal description- show as a
separate item
E24 Easements affecting Common Area

G8 PIQ is located within a Redevelopment Project Area (Usually all lots in a tract
will be affected by the same redevelopment project.)
G26A Questionable transference of change of title

RIGHTS ALWAYS Rights of parties in possession

Deeds of Trust:
Code When to use
D1 Deed of Trust

NV19 Deed of Trust with MERS as beneficiary

D60 Equity or Line of Credit Deed of Trust (sub paragraph of D1 or NV19)

RQ190 Beneficiary is private individual (sub paragraph of D1 or NV19)

D5 Assignment of beneficiary (sub paragraph of D1 or NV19)

D3A Use when there is no clear succession of assignments (do not use a D5) D8 Substitution of
trustee (sub paragraph of D1 or NV19) Do not show multiple D8s D9 Notice of Default (sub
paragraph of D1 or NV19)
D10 Notice of Trustee Sale (sub paragraph of D1 or NV19)

D14 Recorded Subordination Agreement

D15 Loan Modification Agreement

D11 Statement within DT of subordination of concurrently recorded DT (must state it)

G51 Reverse mortgage exception

D33 Indicates that an the DT is being investigated to clear it

U1 Uniform code Financing Statement for HVAC or water fixtures

U1A Uniform code Financing Statement for FIXTURE FILING

Liens:
Code When to use
C17 Homeowner’s Association Lien show if there is no TDUS C17A Notice of
Default of HOA lien
C17B Notice of Trustee’s Sale for Delinquent HOA dues

J21 Delinquent liens

G19 Notice of Abatement, Nuisance, Hazardous area

G19A Notice of Abatement, Nuisance, Hazardous area with an amount shown

L2 State Tax Lien

L1 Federal Tax Lien

J1 Abstract of Judgment

J6 Child Support Judgment

J3 Pending Court Action – Lis Pendens

Miscellaneous:
Code When to use
V1 Use for conditional vesting. Must be followed with the item number of the
exception that contains the reason for the conditional vesting.
NOTES:
Code When to use
A1 ALWAYS No items will cause decline DO NOT USE FOR VACANT LAND

A3 ALWAYS The company is not aware of matters that would cause decline DO NOT USE
FOR VACANT LAND
A3A Always substitute this code for the A3 when PIQ is a CONDO (Show Unit #) R1
ALWAYS Requests further information concerning BUYERS – to be used in
Resale and Binder order types
R2 To be used if unable to clear GI in a REO, FC or DIL order type. Be sure to set
out name(s) to be cleared **see note below
N2 If there has been no transfer of title within the past 24 months

N3 Shows a transfer of title in the past 24 months

N3A Continuation of transfers of title in the past 24 months (sub paragraph of N3)

CA4 ALWAYS

Examiner Your name as the person who examined the order

NV21 Use when the C15 doesn’t fit. Good for most documents

Note: The following “copy” code may be used in place of the R2 –
Any liens, judgments or proceedings against § which may affect the title or interest in and/or
to said land by reason of the acquisition of any interest in and/or to said land. The
existence of any such liens or other matters cannot be determined unless we are in receipt of a
satisfactory statement of identity or information concerning all parties.

STARTERS
Starters are provided in the SEARCH PACKAGE. However, occasionally an examiner must
find a starter if none is provided or if the starter is not appropriate.
Starters are previous Policies or Commitments that show easements, CC&Rs and other
exceptions relevant to the property in question.
Starter Preference in order of desirability for Subdivision, Tract or Parcel Map properties (if
able to obtain):
1. Fidelity or sister company homeowner’s policy or commitment that directly affects PIQ
2. Fidelity or sister company lender policy or commitment that directly affects PIQ
3. Outside company homeowner policy or commitment that directly affects PIQ
4. Outside company lender policy or commitment that directly affects PIQ
5. Fidelity or sister company homeowner’s policy or commitment that affects an adjoining
parcel to PIQ
6. Fidelity or sister company lender policy or commitment that affects an adjoining parcel to
PIQ
7. Outside company homeowner’s policy or commitment that affects an adjoining parcel to
PIQ
8. Outside company lender’s policy or commitment that affects an adjoining parcel to PIQ
THE FOLLOWING ARE THE LEAST DESIRABLE STARTERS AND SHOULD ONLY BE
USED IF THERE IS NO OTHER OPTION:
9. Fidelity or sister company Preliminary Report which directly affects PIQ
10. Fidelity or sister company Preliminary Report which affects an adjoining parcel to PIQ
11. Outside company Preliminary Report which directly affects PIQ
12. Outside company Preliminary Report which affects an adjoining parcel to PIQ

ADJOINING PARCEL STARTERS
NOTE: You may NOT use an Adjoining Parcel Starter for Sectional or Metes and Bounds
Land and some older tract lots. These types of land are unique and require a DIRECT
starter.
1. Must be located as close as possible to the PIQ. They must be within the same
subdivision, tract or parcel map and in the same BLOCK as the PIQ.
2. Should an Adjoining Parcel Starter be used, there must be TWO starters from
DIFFERENT parcels or lots. The two starters may NOT be for the same property.
The recording information for the CC&Rs should be the same for each starter. If the
CC&R recording information is different, a direct starter must be obtained.
3. When using an AP any provision to extend under the CC&R code (usually shown as
a C9) must have the document pulled to verify that the extension includes the PIQ
lot. Show this document as a C9 only when it directly refers to the PIQ.
4. Copies of the recorded documents for reference as to relativity or location of the
easement should be provided. If documents are unavailable, use the notation that
the easement affects “A portion of said land.”
5. In older tracts, CC&Rs are often attached to the Lot and not the Tract. Before coding
an AP starter check for consistent recording information of the two AP starters. The
counties in which this is most often relevant are:
a. Alameda (Older tracts in cities such as Oakland and San Leandro)
b. Contra Costa (Older tracts in cities such as Richmond and Pinole)
c. Orange (Older tracts with tract numbers below 1000.)
In this case a direct starter is required.
6. There may be an exception on the starter (usually the last exception prior to the DT)
that gives the recording information of a “Grant Deed” or a “First Deed Out” and may
be shown as an NV21 (Terms and conditions…). This exception would not be
relative to the PIQ because it relates ONLY to the lot in the starter. Do not show this
exception with the information from the starter.
OTHER STARTER FACTS FOR DIRECT and AP STARTERS

1. When using an AP starter both of the two APs must show the same documents. If the
documents shown are different, a direct starter must be used. If some of the documents are the same
and others are different, pull the different docs to make sure they relate to the PIQ. If you can’t
pull the docs, a direct starter must be used.

2. If a DIRECT starter contains unrecorded exceptions that may have been disclosed by a
survey or physical inspection, do not use this item as a copy code. Instead add an “A5” code as
the last item in your write-up.

3. If the first deed out from the developer to the owner is shown on the direct starter,
show this as a C15. This will read as covenants and restrictions as found in a “Grant Deed”.

4. Some tracts have CC&Rs that existed prior to the newest tract development. These are
“Underlying” CC&Rs and must be shown.

5. If “Development Agreements” and associated documents are shown in a starter, they must be
shown in the current report for both Direct and AP starters.

6. When encountering a C9 (extension of lots to be included in the CC&Rs of the said tract)
in a DIRECT starter, continue to show without pulling the doc to verify lot extensions. This is for
a DIRECT starter only. If there is more than one annexation (C9) it is best to pull the annexation
docs and determine which one relates to the PIQ.
TAXES

Tax information may be obtained from LPS Tax Report, Titlepoint, Data Trace or Netroline.

CURRENT YEAR TAXES

Generally, the county real estate taxes are due in December and April, but this can vary between
counties. Unpaid taxes are shown as a T2 and Paid taxes are shown as a T4. On some printouts
current taxes are shown as “CR”.

During certain times of the year, usually August through January, some counties show the next
year’s taxes as well as the current year taxes. In this case, delete the T1 and replace it with T2
and show the amounts as “Payable”.

CURRENT YEAR DELINQUENT TAXES

Taxes are delinquent after December 10th and April 10th. Once they are delinquent they are subject
to a penalty of 10% and a fine of $10.00. Show these taxes as T2 with the word “delinquent” next to
the amounts. The typist will insert the penalty and interest as shown on the county tax printout.

SUPPLEMENTAL TAXES

Counties will often assess properties with supplement taxes due to transfer of title or other
factors. Unpaid and/or delinquent supplemental taxes are shown as T7. On some printouts
supplemental taxes are shown as “CS”

DELINQUENT PREVIOUS YEAR TAXES

Shown as a T5 it reflects the redemption schedule for delinquent & defaulted taxes.

MELLO ROOS TAXES

Mello Roos taxes are assessments levied out of the Mello Roos Community Facilities Act. They can be
identified on the tax printout as “Mello Roos” or “CFD”. Show these in the tax section of the
worksheet as T40.

If there is recorded document for the Mello Roos tax, show it in the regular tax section of the
worksheet as a T20 and include the recording information.

IMPROVEMENT DISTRICT BONDS

Assessments for improvement district bonds usually show on the tax sheet as “1915 Bond”. Show these
on the worksheet as T11.
Improvement district bonds noted as (NOTPDW/TAXES) should be shown as T12. Improvement District
Assessments not shown as a “1915 Bond” and “(NOT PAID WITH
TAXES)” are shown as T44.

NOTICE OF INTENT TO REMOVE DELINQUENT SPECIAL TAX
In the Property Run there may be showing a “Notice of Intent to Remove Delinquent Special
Tax Installments from Tax Roll”. Show this document as a T20A in the exceptions rather than
the taxes for the year specified in the Notice. Locate on the taxes the referenced Mello Roos tax
and do not show as a T40 in the regular tax sections on the worksheet.
EXCEPTION: If the Notice is for the previous year, show the T40 for the current year AND
the T20A for the year indicated in the Notice.
ANY OTHER NOTICE OF INTENT TO REMOVE
These notices are NOT the release of a lien. They are actually a recording of a lien for NONpayment
of certain taxes. The notice indicates that these taxes will now be shown in a different
manner. These notices must be shown on the report.
SPECIFIC COUNTY CODES
There are some counties that have codes specific only to that county. There are also counties
that require that certain contact information be included in the report. The typist must copy the
information from the chart into the report. A chart of the counties and codes follows.

CC&Rs and EASEMENTS

CC&Rs

CC&R are recorded documents that designate restrictions in the use of the land. They may be found
in a separate recorded document shown as C1A, C1M, C5, C24 or C24A. They may also be found in the
1st deed out from the developer to the first buyer of the lot which would be shown as a C15.
Restrictions may also be found on Tract Maps and in other documents.

See the Worksheet Codes for when and which code to use for a specific CC&R code.

EASEMENTS

Easements are portions of the PIQ that are used by a specified entity for a specific purpose. See
the Worksheet Codes for when and which easement code to use for a specific purpose. OFFERS OF
DEDICATION
Offers of dedication for a purpose for anything OTHER than roads or highways must be shown using a
COPY code. Usually these are shown on the starter.

Street and highway dedications are shown as an E49 code. We always show Offers of
Dedication even if they have been accepted by the governing agency.

DEEDS and VESTING
There are many types of deeds used in various circumstances. Below is a sampling of the deeds that
appear most often in performing a foreclosure exam.

FULL VALUE DEEDS

These are indicated by a dollar amount in the transfer tax. Usually there are from one party to
another that is NOT a part of the family. It also may be stipulated within the deed that it is a
“full value” deed.

NOTE: if the deed is immediately followed by a Deed of Trust with concurrent recording information,
the Deed is USUALLY a full value deed. Exceptions may apply.

QUIT CLAIM DEEDS / INTERSPOUSAL DEEDS / GIFTS

There will be NO transfer tax. Sometimes the deed stipulates that it is Interspousal or a gift.

TRUSTEE’S DEED UPON SALE

This is a transfer of title when a property is foreclosed upon.

WHERE TO VEST
1. If there is no Trustee’s Deed Upon Sale vest to the last deed that contains the names of
the borrowers on the subject DT when followed in clear succession.

2. If there are deeds that do not contain the borrower’s names, show them as G26A.

3. If a deed is questionable and uninsured, show it as a G26A.

4. Show G26A deeds in the exceptions of the worksheet after the DT’s, also include in the
vesting as items “subject to” using the V1 code.

5. If there is a TDUS vest to the Grantee in the doc.

24 MONTH CHAIN IN TITLE

Show all recorded changes in title within a 24 month period as an N3. This includes any G26A coded
Deeds. G26A coded deeds will show in the exceptions as well as an N3 or N3a if within the 24 month
time frame.

HOMESTEAD DECLARATIONS

A homestead declaration protects a portion of the equity in a home from being seized and sold in
the event a money judgment is entered against the homeowners.

We show these declarations as a code V24. If the vesting is still in the same name as the
homestead, the vesting from the deed would be conditional to the homestead declaration and should
be shown as a V1.

Do not show a homestead declaration that has a recorded termination.

DEEDS OF TRUST
DETERMINING THE VALIDTY OF A DEED OF TRUST
A valid Deed of Trust must contain the following items:

1. Recording date
2. Recording instrument number, book and page
3. The date the Deed of Trust was made
4. The name of the Trustor (Borrower)
5. The name of the Trustee
6. The name of the Lender
7. The amount of the loan
8. Operative words of conveyance
9. Assessor’s Parcel Number
10. Street address
11. Correct legal description
12. Signature of the Trustor
13. Acknowledgement and signature of a Notary Public
IF THE DEED OF TRUST IS NOT VALID for any of the reasons stated above, bring the issue to the
attention of the Title Officer.

Show the “effect of” using a G3A for the deed of trust and show everything following it as you
would in a valid deed of trust.

ASSIGNMENTS

Assignments transfer the beneficial interest from one party to another. Show all assignments as a
D5. If there is a break in the chain, show the last properly executed assignment on the chain as a
D5 and any subsequent assignments as a D3A.

SUBSTITUTIONS OF TRUSTEE

Show all Substitutions of Trustee as a D8 code. If there is a break in the chain, show the last
properly executed Substitution of Trustee on the chain as a D8 and any subsequent
substitutions as D8A.
DETERMINING THE VALIDTY OF A NOTICE OF TRUSTEE’S SALE
A valid Notice of Default must contain the following items:

14. Recording information for the subject Deed of Trust

15. Two of the following:

a. Assessor’s Parcel Number b. Street Address
c. Legal Description of PIQ

DETERMINING THE VALIDITY OF A TRUSTEE’S DEED UPON SALE
1. Start with a full value GRANT DEED conveying the property to the Trustor named in the
subject Deed of Trust.
2. Locate the subject DEED OF TRUST and note the beneficiary, trustor and trustee
names.
3. If the beneficiary is not MERS, there must be an ASSIGNMENT OF DEED OF TRUST
which reflects the name of the Grantee on the Trustee’s Deed Upon Sale unless the
Grantee is the beneficiary on the subject Deed of Trust.
4. A SUBSTITUTION OF TRUSTEE which reflects the name of the Grantor on the
Trustee’s Deed Upon Sale. If there is no Substitution of Trustee recorded, the Grantor
should be the Trustee named on the subject Deed of Trust.
5. There must be a recorded NOTICE OF DEFAULT.
6. There must be a recorded NOTICE OF TRUSTEE’S SALE.
7. The legal description must match the legal description in the subject Deed of Trust.
8. The subject Deed of Trust information, i.e., recording date, instrument number, trustor’s
name, etc., must match what is shown on the Trustee’s Deed Upon Sale.
9. If all the above criteria are met, the Trustee’s Deed Upon Sale is valid.
IF THE TRUSTEE’S DEED UPON SALE IS NOT VALID:
1. Show all non-reconveyed Deeds of Trust and subsequent relating documents;
2. Show all related documents as D8a for the effect of a Substitution of Trustee; D9a for
the effect of a Notice of Default; and a D10a for the effect of a Notice of Trustee’s Sale;
3. Back vest to the last viable conveyance;
4. Code the TDUS as a G26B;
5. Make a note on the TDUS “This company requires the re-recording of the above
Trustee’s Deed upon Sale to reflect the correct (legal description or other information)
Mark the worksheet as “copy”;
6. If the proper succession of documents has not been met, the documents must be
recorded to provide a clear chain of foreclosure events. Make a note on a separate
paper:
“This company requires the recording of the (missing document, i.e., Substitution of
Trustee or Notice of Default or Notice of Trustee’s Sale) to comply with the proper
succession of foreclosing documents.” Include on the worksheet as “COPY”.
7. Send an email to LPS 2nd examiners of your findings and make a notation in the LPS
file log (in Title Management).

OPEN SENIOR DEEDS OF TRUST
When a deed of trust is paid off (reconveyed) by obtaining another deed of trust for an amount
of money over the pay off amount, the title company insuring the pay off deed of trust is to
record a reconveyance or release of obligation of the original deed of trust. If the title company
does not record the reconveyance or a release of obligation a request is sent out to the title
company to issue an indemnity to protect against loss or damage.
Code the senior deed of trust as normal and add the following code as a sub-item to that deed
of trust:

D33 (indicates that an investigation of the release is being done.)