Legal Question in Real Estate Law in California

Re: Trustee's Sale Guarantee report

A purchaser at a trustee's sale conducted by an inexperienced trustee may have difficulty obtaining title insurance. This is because title insurers know that amateurs have a high rate of mistakes that may impair or invalidate the title conveyed by the trustee's deed.

A trustee's sale guaranty is a kind of insurance policy that a title company may provide a trustee or beneficiary upon payment of a fee or premium. The issung title company basically says that it has researched the public records and finds that all notices have been issued as required, and therefore the title company, for the fee, is willing to insure the buyer that the trustee's deed will be good. These guarantees are full of exceptions and exclusions and do not always assure a happy outcome.

No title company will issue a trustee's sale guarantee unless it has done some research itself, and as far as I know there is no particular statute governing these guarantees, although there may be some obscure regulations promulgated by the Department of Insurance and/or Department of Real Estate. In any event, you can't get one without payment of a fee or premium and the issuer's own successful research.

Finally, I would advise you to seek professional assistance from an attorney or foreclosure consultant before conducting a foreclosure sale yourself.